REALTORS® see encouraging signs for the year ahead.
Story by Tracy Dickinson | February 2026
Anyone new to the real estate market would assume the erratic pace of activity over the past five years was typical. Seasoned REALTORS® know better, and they’re encouraged by the steadier pace of recent months.
As the professionals on the following pages have indicated, there’s wisdom in a steady tortoise pace rather than the unpredictable ups and downs of a hare’s rate. And just like the old fable tells us, the long game is won by a slow and steady pace.
Interest rates, home prices, and inventory may present challenges in 2026—again. But a savvy, educated home buyer (or seller) will also be prepared for some great opportunities this year that will pay off long into the future.
Scott Steelman
Iowa Realty
Iowa Realty’s Scott Steelman says 2025 was a strong sales year, but it had its quirks. “In some ways, it was no different than most years with steady sales in the middle ranges and noticeable stalls in the extreme ends (the lowest and highest price points) of the market.”
He says that was due to several factors, most notably supply and demand. “Inventory was saturated compared to demand. But demand was down in those segments because of other market factors, including uncertainty about the economy and hesitancy regarding interest rates.”
Oddly enough, the most expensive homes, those going for well over a million dollars, tended to sell quickly and often as cash transactions.
“That segment of the market, while small, is growing in the Des Moines area,” Steelman says. “And buyers have built up equity and investments. So when a property becomes available, those select buyers are able to snap it up pretty quickly.”
Steelman says the early weeks of 2026 have already shown improvement at the entry-level segment, with interest rates down about 1%. “Some first-time buyers worried that it would be difficult to qualify for financing when interest rates were higher,” he says. “And others were just waiting to see if things would go back down. Both of those groups are ready to start looking, so we’re seeing more activity in this segment.”
Steelman says that factor is just one indicator that 2026 will be a strong, steady year for real estate sales. “There are a number of encouraging signs. We have a stable job market. Businesses are growing and more are moving to the metro area. Commercial real estate brokers are seeing a growing number of national chains entering the market. And there’s consistent growth in communities around the metro.”
That being said, the market—and how clients shop—continues to evolve, and REALTORS® must continue to adapt. In addition to using technology effectively, Steelman says simply monitoring and understanding the market requires a proactive approach if REALTORS® are going to be successful.
“The number of agents who failed to document a single transaction last year is staggering,” he says. “Statistically, more than 70% of sales are the result of past clients who are either reentering the market or referring a new client.”
With so much of the marketing taking place online through social media and online listing sources, new agents are having to work harder than ever to make those contacts. “Add to that the challenge of appropriately pricing our aging inventory, and new and seasoned REALTORS® both are sometimes facing an uphill battle,” says Steelman.
Due to the dramatically fluctuating market, higher taxes, and increased home valuations from recent years, many sellers enter the market with an inflated estimation of a home’s value.
“Our job as REALTORS® has always been to partner with and educate our clients so they can achieve their goals,” Steelman says. “That doesn’t change even if the market does. And if we continue to focus on that, I see 2026 improving across the board at every level.”
Scott Steelman
Iowa Realty | IowaRealty.com
Les Sulgrove
Iowa REALTORS®
If anyone has his pulse on the central Iowa real estate market, it’s Les Sulgrove, Statewide Housing Analyst for Iowa REALTORS® and the official Stat Guy at DesMoinesMarketValues.com. Although he’s been in the industry longer, Sulgrove has been tracking sales and listing data for 20 years, and the information he makes available on his site is invaluable to local real estate professionals.
“It’s an informational site, not a marketing site,” Sulgrove says. “The longer I’ve been doing this, the more I realize how valuable information is. As I get smarter, I tell a better story, and that’s what this site is about.”
According to the data Sulgrove gathered from 2025, he says the year’s activity went about as expected. “It may have felt slower to some after the abnormally hectic years before. But it was actually a good year. More homes sold in 2025 than in 2024, and the number of homes at the highest end of the market (over $1 million) continues to rise. We had over 50 new homes at that level last year and 122 resale properties over $1 million also.”
Sulgrove says another sign of a strengthening market is the number of resale properties listed. “That number has been down the past few years,” he says, “partly due to interest rates. Homeowners weren’t eager to finance a purchase when they were sitting on a 3% interest rate with their existing home. But resale property listings were back up to about 80% of listings last year, and that’s a good sign for the market overall.”
With interest rates stabilizing, Sulgrove says consumer confidence will increase, and the market as a whole will be more stable. “A stable market is always better than one with extreme ups and downs. When things are changing that fast, it’s harder to price homes accurately, it’s harder to predict inventory levels, and everything gets more unpredictable.”
Although interest rates didn’t drop significantly in 2025, that 1% change should have a noticeable effect on the market in 2026. “That translates to more home for the money. Borrowing at a 1% lower rate, home buyers with $2,000 in monthly principal and interest can finance $30,000 more for the same monthly payment. That opens up more of the market to them than they had a year ago.”
Sulgrove says statistics indicate the median home price is also slightly lower, which makes 2026 a great time to be in the market to buy. “Home prices had been climbing faster than cost of living. So this recent drop is more of a stabilization, and that’s a good thing for the market,” he says.
Prices may begin climbing again as the market enters its normal spring uptick, but Sulgrove still anticipates Des Moines will close out the year with more units sold than in 2025.
“We probably won’t hit 15,000 units yet, but we should be well over 14,000 again,” he says.
Combine that with the average appraised home value increasing 4% around the metro as the year began, and Sulgrove sees a solid market for 2026.
Les Sulgrove
Iowa REALTORS® | IowaRealtors.com
Eric Webster
Berkshire Hathaway Home Services First Realty
Despite affordability remaining as a top ongoing challenge, Eric Webster of Berkshire Hathaway says the company had a very good year in 2025. “We eclipsed 2024 activity, and we’re especially encouraged to see the market stabilizing after several years of volatility.”
Webster says interest rates were a focus as 2025 began, especially for homeowners, but rates were less of a factor than many real estate professionals feared. “I don’t think interest rates were a key motivator for most buyers,” Webster says. “People have grown accustomed to the 6% range, which is more of a norm than the extreme lows we had a few years ago. And the moderate pace the market has settled into is better for both buyers and sellers.”
Webster anticipates 2026 will be a year of equilibrium because of a more-balanced inventory that serves buyers well.
“Affordability remains an issue—that’s not going away,” he says, “especially as equity has climbed. Properties have increased in value nearly 50% since 2020, and that makes it harder and harder for first-time buyers to get into the market.”
In fact, the average age for the first-time home buyer today has surpassed 40 years old.
“So many factors play into the home-buying decision,” Webster says. “In a more stable market, REALTORS® actually have to work a little harder than when homes are selling faster than we can list them. But a stable market is a win-win market—neither buyers nor sellers are driving the bus.”
He says the tools available to the average buyer can give a skewed impression of what’s available and what’s affordable for them, but taking advantage of a REALTOR®’s expertise can be a game changer. “An experienced REALTOR® can usually give a to-the-dollar estimate of what it will cost for a buyer to get into their dream property. Buyers who are willing to sit down and share their vision will have a much clearer picture of what’s possible.”
Cultivating relationships has always been the heart of the real estate business, and as the market stabilizes, that will become even more important. “The experience and knowledge that a REALTOR® brings to the table is a valuable tool to home buyers,” says Webster.
The biggest challenge in 2026 will be for the entire industry to address long-term issues before they become entirely untenable. Webster says, “We really need to put our heads together as builders, developers, REALTORS®, and communities if we’re going to find a solution that makes home buying possible for that entry-level buyer. When you look at newer neighborhoods, lot sizes are bigger, homes are bigger, community regulations control lot size, and association restrictions remove buyer choices. All these features make new homes more expensive than homes in older neighborhoods.”
Webster says 2026 will be a year for REALTORS® to return to their foundational principle: relationship building. Doing so will create a space where buyers and sellers both can achieve their goals, and the industry as a whole can begin to address concerns that affect everyone.
Eric Webster
Berkshire Hathaway Home Services First Realty | BHHSFirstRealty.com
Scott Wendl
RE/MAX Precision
Despite little change in interest rates and rising inflation, RE/MAX Precision’s Scott Wendl says 2025 was a very good year.
“Personally, it was one of the better years of my 30 years in the business,” he says. “We saw more listings. More sellers were looking for advice. So pricing was more accurate, which led to stronger inventory levels.”
As the new year began, he says one of the biggest surprises was the ratio between new construction and resale on the market. “The ratio of new construction is a bit higher than usual right now, which could affect activity in the spring. Some builders may have enough inventory that they’ll be more cautious about spec projects,” Wendl says.
On the other hand, the rise in resale listings bodes well for the market, since that indicates more people are looking to move. “We’ve seen loan applications up nearly 30% since the beginning of the year,” Wendl says. “With interest rates dropping, people are getting the paperwork done so they’re ready to buy when the time comes.”
Wendl says that’s also a good sign for REALTORS® because potential clients are interested in being well-prepared. “A lot of our job is to educate the public so when they’re ready to buy or sell, they’re as knowledgeable as possible. Social media, news articles, direct marketing—those all have a part in that. But we also have to be up front with homeowners. It’s not about telling sellers what they want to hear; it’s about helping them understand how best to price their home based on condition, location, and the current market.”
In the Des Moines metro, homes typically appreciate at a steady rate. But values have been climbing a bit more quickly the past few years, and that has affected the pace of sales. “If a buyer understands the part that interest rates, market factors, and inventory affect pricing, it’s usually to their advantage to act sooner rather than later,” Wendl says. “A home purchased today at $300,000 will be worth $310,000 a year from now. Waiting isn’t going to make it more attainable.”
Consumer interest and increased activity in the early weeks of 2026 are positive signs, according to Wendl. “More search activity means more people are considering entering the market. And that energy is a real positive for the market this year,” he says.
The biggest challenge will be helping potential buyers match their expectations to reality. This is especially true for first-time buyers. Prioritizing needs and wishes can be the difference between homeownership and a disappointingly long wait. That may even be one factor in the rising age of first-time buyers.
“If people are willing to see their first home as a starter home, they can begin building equity a lot sooner and can be in that dream home sooner, too,” Wendl says. “Finding a well-built house that just needs some cosmetic attention is a great way to do that.”
In a stable market like that which is anticipated for 2026, a savvy buyer—partnered with an educated real estate professional—can begin the experience of homeownership.
Scott Wendl
RE/MAX Precision | REMAXPrecisionDSM.com