Demand for Iowa Mortgages Slows Down, Home Prices in State Drop

In September, home sales and home prices in Iowa tumbled.

In October, it was more of the same.

The Iowa Association of Realtors recorded 3,023 property sales in October, down 4 percent from a year ago when 3,141 homes sold. Meanwhile, the state’s median home price declined to $109,650 in October, down from $110,000 the month before.

This is at least good news for those that would presently consider a home mortgage loan in the area; you can probably bargain most sellers down.

In Des Moines, the state capital, there were 825 home sales recorded in October, down 9 percent from the same month last year when 905 homes sold. The city’s median home price during the period remained at $148,650.

Sales in the Greater Davenport area were off 14 percent from a year ago, registering 192 sales in October compared with 224 in October 2005. The area’s median home price was mostly flat during the period at $109,600.

Despite the overall cooling statewide, Cedar Rapids posted a 9 percent sales gain between October 2005 and October 2006, with closings rising from 330 to 359.

The city’s median price also increased, gaining 4 percent to $128,500, although this was down from September’s median of $132,900. This makes it one of the few areas in the state - and country, really - where those applying for home loans are not in the driver’s seat.