Welcome to the March edition of your monthly market update. Spring is right around the corner, and the housing market is sending some interesting signals. Whether you're thinking about buying, selling, or just staying informed, here's what you need to know this month—nationally and right here in the Des Moines metro.
Mortgage rates ticked up in early March after dipping below 6% briefly at the end of February. The 30-year fixed-rate mortgage averaged 6.11% for the week ending March 12, up from 6.00% the prior week, according to Freddie Mac. By March 16, Bankrate pegged the national average 30-year fixed rate at 6.27%.
Why are rates rising? Geopolitical tensions from the conflict in Iran have constricted oil supply, pushing oil prices and bond yields higher. The 10-year Treasury yield climbed above 4.16% in early March after hitting a low of 3.96% on Feb. 27. Since mortgage rates are closely tied to bond yields, this upward pressure is being felt directly by buyers.
The silver lining: rates are still meaningfully lower than a year ago when the 30-year fixed sat at 6.65%. The forecast for 2026 from the Mortgage Bankers Association and Fannie Mae puts the year's average around 6.0%–6.1%, with potential dips to 5.7% if economic conditions shift favorably.
The National Association of Realtors (NAR) reported that existing-home sales rose 1.7% in February to a seasonally adjusted annual rate of 4.09 million units. The median existing-home price came in at $398,000, up a modest 0.3% year-over-year—marking 32 consecutive months of annual price gains.
Nationally, inventory stands at an estimated 1.29 million units, up 4.9% from a year ago. Housing affordability improved for the eighth consecutive month, with NAR's Housing Affordability Index reaching 117.6 in February—the highest since March 2022. However, new construction is off to a slow start in 2026, with single-family housing starts down 6.5% year-over-year.
Midwest leads the nation: The Midwest has solidified its position as the country's strongest region for home price growth, averaging 3.56% year-over-year appreciation. Iowa's neighbors are leading the way—Illinois at +4.91%, Wisconsin at +4.78%, and Nebraska at +4.75%.
The Des Moines metro kicked off 2026 with a mix of encouraging and cautionary signals. Inventory is healthier than it's been in years, buyer activity is picking up, and the metro remains one of the most affordable markets in the country. Here's the breakdown.
Zillow's Home Value Index puts the typical Des Moines home at $190,948, up 5.5% over the past year. Meanwhile, across the broader metro, the median home price reached $285,000 in Q1 2026—a 6.2% year-over-year increase according to market reports. This healthy appreciation reflects the metro's sustained demand and relative affordability compared to national benchmarks.
This is the big story. Active inventory in the Des Moines area has climbed above 4,200 listings—the first time we've seen levels like this since 2019. That's a significant shift from the ultra-tight conditions buyers endured in 2021–2023. The metro currently sits at approximately 2.8 months of supply, up 15% from Q4 2025. While this still favors sellers, we're moving toward a more balanced playing field.
Statewide, Iowa saw new listings climb to 3,072 in January 2026, a 2.7% increase year-over-year, with active listings reaching 8,308—up 12.1% from last year. New construction permits across the metro have also jumped 18% year-over-year, with developers building both single-family and multi-family to meet demand.
What this means for sellers: More inventory means more competition. Pricing your home right from day one is more important than ever. Overpriced homes are sitting longer—days on market have increased to roughly 39 days statewide (up from 37 last year). Work with your agent to develop a smart pricing strategy.
Sales volume in the Des Moines metro surged 18% in Q1 2026 compared to the same period last year—the strongest first-quarter performance in over four years. In January alone, 155 homes closed in Des Moines proper, up from 149 last year. Statewide, the median sale price rose to $231,500 in January, a 7.7% annual increase.
Les Sulgrove, Iowa REALTORS® Statewide Housing Analyst and a 35+ year veteran of the Des Moines market, has been tracking rising pending sales as a key indicator. His weekly market reports on the SimplyDesMoines YouTube channel highlight that the "dam is starting to break" with pending activity accelerating—a leading indicator that closed sales will continue climbing into spring.
Homes in the Des Moines metro are going under contract in about 22 days on average according to Zillow, though well-priced properties in hot neighborhoods like Beaverdale, West Des Moines, and Ankeny continue to move faster. Statewide, the average sits at 39 days—a slight increase from last year, reflecting the healthier inventory environment giving buyers a bit more breathing room.
The spring market is shaping up to be the most active we've seen in a few years. Here's what I'm watching:
Rates may ease. If geopolitical tensions cool and inflation continues its downward trend, we could see rates dip back toward the mid-to-low 5s later this year. Bankrate projects the 2026 average around 6.1%, with the possibility of rates touching 5.7%.
Inventory will keep growing. More listings are coming to market, and new construction is ramping up across the metro. This is great news for buyers who've been waiting on the sidelines. For sellers, it means a strategic approach to pricing and presentation will be key.
Des Moines remains a standout. Our metro continues to punch above its weight in affordability, job growth, and quality of life. With the Midwest leading the nation in price appreciation and Des Moines consistently ranking among the most livable metros in the country, this is still a terrific place to invest in real estate.
Thinking about making a move? Whether you're a first-time buyer looking to take advantage of improved inventory, a homeowner curious about what your property is worth, or an investor eyeing the Des Moines market—I'd love to chat. Reach out anytime at austingochneaurrealestate.com.
4820 100th St #101, Urbandale, IA 50322
Cell: (515) 313-8768
Office: (515) 729-2879
Data is sourced from third-party providers and believed to be accurate as of publication. This newsletter is for informational purposes only and does not constitute financial or legal advice. © 2026 Austin Gochneaur. All rights reserved.