The Ames real estate market has kept rolling along while the market continues to shift. The “free” money environment of the last two years fueled activity and price increases at unsustainable rates. What we’re experiencing now is a healthy correction to more normal and balanced conditions. Homes in Ames are still moving quickly, they’re still appreciating in value and the number of active listings is on an upward trend.
Interest rates appear to be leveling off between the 5% and 5.5% range, which has caused a market normalization. That interest rate range is still on the low end, historically, which provides an incentive for buyers. That being said, 5.5% isn’t 3% and some buyers have gotten priced out of the market. That means we’re in a slightly less competitive landscape, so buyer protections in purchase agreements are back on the table. Things like inspections and appraisals are there to protect buyers and are becoming the norm again.
For sellers, home prices are still appreciating because some competition remains for houses. The competition that remains has kept the median days on market right around a week.
The busy season in Ames should last for another month or two.
Buyers and sellers should act now and contact their Friedrich Iowa Realty Agents to get the ball rolling and capitalize on this more normalized market.