Bi Ayers

Signs continue to point toward a normalizing — and healthy — real estate market in the Ames area.

The median days on market is slowly trending upward, which is allowing buyers a better opportunity to view houses and make the best decision for them and their family. The reduced competition has also allowed for more buyer protections in purchase agreements. Things like inspections and home warranties are back on the table. However, the days on market isn’t increasing so quickly that sellers should be concerned. Their houses are still moving at a good pace. Keep in mind, before all the real estate craziness happened, the median days on market averaged +/-60 days.

Interest rates in August hoovered around the 5.5 to 5.75 mark. While still low in a historical context, it is a significant difference from the 3% rates we saw to start the year. That 2.5% increase has reduced the buyer pool and created a healthier market overall. Even with the decreased buyer pool, house prices in Ames are still appreciating. Year-to-date, the median sale price has increased 5.3%

Inventory is still sparse and to get back to a completely normalized market, more houses need to come on the market.