How Is the Central Iowa Real Estate Market Right Now?

By Misty Darling

Professional service with an emphasis on guidance, planning, and dedication to my clients’ needs are my top priority.

If you’re thinking about buying, selling, refinancing, or even staying put this year, what’s happening in the Central Iowa housing market affects you. I hear it every day from clients trying to make smart decisions while national headlines often send mixed signals.

The good news is the Central Iowa market is finally giving us some clarity. With Realtor.com forecasting a nearly 9% increase in national housing inventory, we are already seeing more homes come to market across Polk, Dallas, and Warren counties and nearby areas.

So before you make any moves, here are the three things you really need to know about the Central Iowa real estate market in 2026, based on what we are seeing, hearing, and helping clients work through every day.

1. Interest rates are easing. Mortgage rates are gradually coming down, and that shift is already changing buyer and homeowner behavior. The 2026 forecast puts average mortgage rates around 6.3%, slightly lower than 2025, following the Fed’s rate cut at the end of last year.

What this means locally includes more buyers stepping back into the market, homeowners who bought at peak rates exploring refinancing options, and more flexibility than we have seen in recent years.

We are not heading back to the ultra-low rates of 2021, but 2026 offers more room to move. That matters whether you are buying your next home or reassessing your current one.

2. Inventory is rising, but unevenly. Nationally, Realtor.com expects for-sale inventory to rise close to 9% in 2026. We are seeing that increase here in Central Iowa as well, especially in areas like Ankeny and Boundary Point, where new construction is adding supply.

At the same time, some Des Moines neighborhoods, such as Beaverdale and Highland Park, are still experiencing tight inventory despite steady buyer demand.

The takeaway is simple. Real estate is hyperlocal. What is happening in West Des Moines can look very different from what is happening in Indianola. In 2026, smart decisions start with your ZIP code, not the national average. Understanding your specific neighborhood conditions is more important than ever.

3. Updated, move-in-ready homes sell the fastest. One of the clearest trends we are seeing across Central Iowa is the strong demand for move-in-ready homes. Many homeowners are choosing to remodel rather than move, which has limited the number of updated homes coming to market.

As a result, homes in great condition in areas like Urbandale and Johnston are selling quickly. Properties that need major updates tend to sit on the market longer or require more strategic pricing.

Sellers who focus on simple improvements, such as fresh paint, new flooring, and updated kitchens, often receive stronger offers. This is also why staging has become such a powerful tool. Staging helps buyers focus on the lifestyle a home offers rather than getting distracted by small cosmetic details.

After years of uncertainty, the Central Iowa real estate market in 2026 is more stable and transparent than it has been in quite some time. Rates are easing, inventory is improving, and expectations on both sides of the transaction are becoming clearer.

That said, every part of our market behaves a little differently. Strategy matters, and the right approach depends on your goals, timing, and location.

If you want a clear, personalized view of what is happening in your neighborhood, whether you are buying, selling, refinancing, or simply planning ahead, I am here to help. We can walk through your options and make sense of the numbers so you feel confident about your next move.

Feel free to reach out to (515) 346-6204 or email Misty@MistySOLD.com to schedule a no-pressure, one-on-one strategy session. We’ll look at your numbers, your timing, and your local market so you feel confident about the road ahead.