The price of a home in Iowa has doubled in the past five years.
The state’s median price jumped by nearly $538,000, or 8.5 percent, to $1,063,931 in July, according to the National Association of Realtors.
The average price in the state rose to $2,064,824, according the latest Census Bureau figures.
The price growth has come despite the economy contracting in the last several years.
The price of homes in Iowa fell 1.9 percent to $9,928,566 in July from $9.6 million a year ago, according on the Association of Independent Realtor.
Iowa’s median home sale price increased 5.3 percent from July 2016 to July 2017, according a Census Bureau report.
But the median price in Iowa was up slightly in July compared to the same month last year.
“Iowa is seeing a slow but steady growth in home sales and median home price,” said Steve Smith, senior economist with the Iowa Association of Counties.
This year is different because the economy is improving, and that means a lot of buyers are looking to move to Iowa, he said.
House prices have remained relatively flat for several years, but Smith said Iowa is seeing an increase in home prices because the number of vacant homes is rising, which means there are more buyers in the market.
Iowa’s vacancy rate dropped to 6.9% in July 2017 from 7.4% in May, according in the Census Bureau.
That was the lowest rate since March of 2019, according National Association for Realtoring.
Iowa also experienced the largest home sell-off in its history, according with the National Assn.
of Realty Investors.
The Iowa Association for Real Estate Investment said that from April 1 to July 10, the number out of state buyers dropped by an average of 5.6% compared to June and July.