The question I get more than any other this year is some version of, “So what’s actually going on with the housing market?” Depending on which headlines you follow, you might think it’s slowing to a crawl or that buyers have disappeared altogether. Here in Central Iowa, that’s just not what we’re seeing.
The Des Moines market keeps inching toward balance. Buyers have more options than they’ve had in a long time, but demand has held up better than a lot of people expected. Builders, for their part, have gotten more deliberate about what they bring to market. Put it all together and it’s a healthier setup for buyers, sellers, and builders alike.
Inventory: More Choices, Steady Supply
The headline this quarter is inventory. Active single-family listings have kept climbing, from 1,605 homes in July 2023 to 2,338 today — up nearly 46% in three years. That sounds dramatic, but the pace of that growth has slowed considerably over the past year. And the number that matters most, months of supply, is sitting at 3.3 months, right where it was a year ago.
That distinction matters, because inventory on its own doesn’t tell you much. More homes for sale doesn’t automatically mean demand is fading. What it really looks like is a market that’s returned to a normal level of inventory after several years of historic lows. Buyers finally have room to compare homes, take a breath, and negotiate when it makes sense — and sellers who price their homes right are still seeing plenty of activity.
Demand Is Holding: Pending and Sold
You can see that demand in the pending and sold numbers. Pending sales are up from 1,316 homes in July 2025 to 1,375 this July, and rolling 12-month sales hit 8,513 homes — the strongest we’ve seen in four years.
That’s one of the more encouraging trends out there right now. Buyers haven’t gone anywhere; they’ve just gotten choosier. Instead of firing off an offer an hour after a home hits the market, they’re taking time to weigh their options and ask the right questions before they commit. That’s a far healthier market than the frenzy we saw a few years back.
The New Construction Story
The most interesting story, though, is playing out in new construction. While resale inventory has climbed, active new construction inventory has gone the other direction. Three years ago there were close to 900 new construction homes on the market across the metro. Today there are 734. Over that same stretch, months of supply improved from 6.2 to 4.8.
At first that seems backwards. If there are more homes for sale overall, why are there fewer new ones? It’s not about weaker demand. Pending new construction sales have held steady over the past four years, and annual new construction sales keep landing right around 1,800 homes. What’s changed is how builders are running their businesses. Rather than putting up a lot of spec homes and hoping buyers show up, more of them are building to match real demand. Higher financing costs, expensive materials, tight labor, and longer timelines have all pushed builders to be choosier about when and where they break ground. That discipline has kept the market from getting flooded with new inventory while still leaving buyers good options.
Right now, 133 of the pending new construction sales — about 34% — are custom or pre-sold homes rather than spec builds. With permit activity holding fairly steady and annual sales parked around 1,800 homes, builders are clearly lining up starts with committed buyers instead of getting out ahead of demand.
Since 2023, total active listings are up nearly 46% while active new construction listings are actually down about 18%. Those two lines heading in opposite directions tell you the recent jump in inventory is coming from the resale side — not from builders flooding the market with new homes.
What It Means Heading Into Late 2026
As we move into the back half of 2026, I expect this balance to hold. Buyers have more to choose from, but well-priced, well-presented homes are still selling. Sellers can still get strong numbers, but pricing and presentation matter more than they have in years. And builders are staying focused on thoughtful growth and custom work rather than chasing volume.
After a few years of extremes, this is a good place for the market to be. Buyers have choices, sellers still have opportunities, and builders can keep delivering quality homes without piling up inventory. That’s a win for just about anyone with a stake in housing in Central Iowa.
Looking ahead, I’d call the market balanced but watchful. There’s opportunity on both the resale and new construction sides, but whether you’re buying, selling, or building, the outcome comes down to good information, smart timing, and realistic expectations. If rates ease late this year or into 2027, we could see another burst of energy. For now, things feel steady.
The Full Numbers
Want the complete breakdown? The full Q2 2026 Des Moines metro stat deck covers every community, price band, months of supply, and the full active, pending, and sold data.
CLICK HERE TO VIEW THE FULL Q2 2026 STATS
If you’re thinking about buying, selling, or building, this is a great time to talk through your goals and where things might be headed. I’d love to help you put together a plan that fits your timeline and your budget.
