The median sale price of a home in the Greater Des Moines area in 2022 was a record high $270,000, 8% more than the previous year, according to the Des Moines Area Association of Realtors.

The median sale price of a home reached $283,500 in June and then fell each month through November when the median sale price was $250,000, association data shows. December’s median sale price was also $250,000.

Two things have caused the high sale prices: A low supply of homes for sale and low interest rates during the first half of 2022, which increased demand for homes.

However, in the last part of 2022, interest rates for home mortgages doubled from what they were in the first part of the year, reducing the number of buyers in the market. Fewer buyers also meant houses weren’t snatched up as quickly as they had been in the past two years, said Jen Stanbrough, the association’s president.

“There’s always going to be people buying houses and there’s always going to be people selling houses,” Stanbrough said during the Business Record’s virtual discussion in December on the residential sector. “What we’ve seen the last couple years has been an anomaly. … I think we’re going to see more of an even market in 2023.”

In 2022, there were 15,605 residential sales – 2,048, or 11.6%, fewer than the 17,653 sales recorded in 2021, association data shows.

Other highlights from the association’s 2022 report on home sales in the Greater Des Moines area, which includes Polk, Dallas, Warren, Jasper, Marion, Madison and Guthrie counties, include:

  • Homes were on the market an average of 34.5 days in 2022, compared with 33.8 days in 2021.
  • 74% of residential properties sold were priced between $140,000 and $400,000.
  • 131 properties sold for $1 million or more. In 2021, 102 properties sold for $1 million or more.