5 Key Factors Des Moines Homebuyers Need to Know Going Into 2025

Buying a home is always a journey, but heading into 2025, it’s shaping to be an exciting time for homebuyers in Des Moines. Whether you’re a first-time buyer looking for your dream starter home or a seasoned pro upgrading your space, here are the top factors shaping the Des Moines housing market in the coming year—and how they can work in your favor.

1. Mortgage Rates Are Stabilizing

The rollercoaster ride of mortgage rates over the past few years seems to be leveling out. Experts predict rates will hover slightly above 6%, a far cry from the spikes we saw in 2023. While this isn’t rock-bottom, it’s still manageable—and here’s the good news for Des Moines buyers: stabilized rates mean more homeowners are likely to list their homes. This could open up inventory, giving you more choices and a little breathing room during your home search.

Pro Tip: Get pre-approved for your mortgage to lock in favorable terms. Even a slight rate change can impact your monthly payment, so being proactive could save you thousands.

2. More Homes on the Market

If you’ve been house-hunting in West Des Moines or Johnston lately, you know the pickings have been slim. But that’s about to change. Housing inventory is expected to grow by nearly 12% in 2025, meaning more options for buyers like you. More inventory means less competition and, in some cases, more negotiating power.

Here’s why this matters: In Des Moines, where the real estate market has been hot, having more options allows you to focus on finding the right home—whether that’s a charming Beaverdale bungalow or a new construction home in Waukee—without feeling rushed into a bidding war.

3. Home Prices Are Easing Up

We’ve seen steady price growth over the last decade in the Des Moines area, and while prices aren’t dropping, they’re slowing down. Predictions show prices will rise by about 3.7% in 2025—less than in previous years. This is especially helpful if you’re targeting homes in the $200K-$800K range.

What does this mean for you? It’s still a good time to invest in a home, but you’ll likely have more time to evaluate your options. No more “offer in 24 hours or lose the house” pressure.

4. Move-In Ready Homes Are Hot

Millennials drive much of the housing demand and are all about move-in-ready homes. This trend is evident in Des Moines: buyers want homes with updated kitchens, finished basements, and little to no need for renovations. If you’re a seller reading this—consider sprucing up your home before listing.

For buyers, this demand means knowing what you want is crucial.

Are you looking for a house you can make your own over time?

You might find a gem in an older neighborhood like Windsor Heights.

Do you prefer a turnkey property with modern touches?

Check out developments in Grimes or Ankeny.

5. Economic Uncertainty Requires Flexibility

While Des Moines has remained relatively insulated from major economic swings, it’s always wise to watch the bigger picture. As the economy continues to evolve, homebuyers need to stay flexible. This might mean broadening your search radius or prioritizing certain home features over others.

Here’s a strategy: Consider house hunting during the slower months—January and February—when demand tends to dip. You might snag a better deal while everyone else is waiting for spring listings to flood the market.

The Bottom Line

Des Moines is a fantastic place to buy a home, and 2025 is shaping up to be a great year for buyers. With mortgage rates stabilizing, inventory increasing, and prices easing, now is the time to start planning your next move. Whether you’re eyeing a cozy home in Valley Junction or a sprawling lot in Urbandale, understanding these trends will help you confidently navigate the market.

And if you need help, you know where to find me. Let’s work together to find a home that fits your needs and builds a future you’ll love in the Des Moines area.

Ready to take the next step? Reach out today at pete@peterjonesrealty.com or 515-738-3074. Together, we’ll make 2025 the year you find your perfect home.