Ever heard terms like months of supply, DOM, or sale-to-list ratio and wondered what they really mean for buying or selling in Des Moines? You are not alone. Understanding a few key market terms can help you price with confidence, time your move, and negotiate smarter. In this plain-English guide, you will learn what each term means, why it matters in Polk County, and where to find trusted local data. Let’s dive in.
Market terms you see in updates
Median vs. average sale price
Median is the middle sale price when you line up all sales from low to high. Average is the sum of all sale prices divided by the number of sales. Median often gives a clearer picture because a few very high or very low sales can skew the average.
Why it matters: Median helps you spot real trends in a neighborhood. If the data set is small, both measures can be noisy, so look at several months together.
How to check locally:
- Compare Polk County reports from the Iowa Association of REALTORS for statewide context and trends. You can start with the Iowa Association of REALTORS research page at the Iowa Association of REALTORS.
- Ask your agent for the latest Polk County and neighborhood medians from the local MLS.
Inventory and months of supply
Inventory is the number of active homes listed for sale. Months of supply is how long that inventory would last at the current sales pace.
Why it matters: It is a quick way to see if the market favors buyers or sellers. A common industry guideline used by analysts and the National Association of REALTORS is about 6 months as balanced, under 3 months as a tighter seller’s market, and over 6 months as a buyer’s market. You can review definitions and methodology through NAR Research and Statistics.
Local tip: In Polk County, months of supply can vary by area. Suburbs like Ankeny, Bondurant, and Altoona may show different supply than central Des Moines.
Absorption rate
Absorption rate is the share of active inventory that sells each month. It is the flip side of months of supply.
Why it matters: Higher absorption means homes move faster, which puts pressure on buyers. Lower absorption means buyers have more choices and more time.
Days on Market (DOM)
DOM tracks how many days a property is on the market before going under contract. Many reports use median DOM to avoid outliers.
Why it matters: Short DOM can signal strong demand or sharp pricing. Longer DOM can signal overpricing or a slow segment. Some MLS systems treat relists differently, so read local notes carefully.
Sale-to-list price ratio
Sale-to-list ratio is the sale price divided by the original list price. It is often shown as a percentage.
Why it matters: Over 100 percent can point to frequent multiple offers. Between 95 and 100 percent suggests modest negotiation. Below 95 percent suggests buyers are negotiating more.
Price per square foot
Price per square foot is the sale price divided by livable square footage.
Why it matters: It is a quick comparison tool for very similar homes. It can mislead if you compare across different home types, ages, lots, or conditions.
Local tip: In older Des Moines neighborhoods and newer suburban builds, finishes and basements can vary a lot. Use price per square foot alongside comps and condition notes.
Comparable sales (comps)
Comps are recent, nearby, similar sales used to estimate value.
Why it matters: Comps are the backbone of pricing strategy and appraisal. Most agents look within the last 3 to 6 months and adjust for key differences like size, age, updates, and lot.
Pending vs. contingent vs. active under contract
- Pending usually means the offer is accepted and major contingencies are cleared.
- Contingent or active under contract means the seller accepted an offer, but certain conditions like inspection or financing still need to be met.
Why it matters: If a home is still contingent, backup offers may be considered. Pending is closer to closing.
Appraisal and appraisal gap
An appraisal is the lender’s independent estimate of market value. An appraisal gap is the difference if the appraisal is lower than the contract price.
Why it matters: If there is a gap, the buyer may need to bring more cash or renegotiate. In more competitive pockets, buyers sometimes plan for this with down payment strength or specific contract language.
Market types: buyer’s, seller’s, balanced
These are shorthand labels based on supply and speed. Analysts often use months of supply and demand indicators like DOM to describe the market. You can learn more about common definitions in NAR Research and Statistics.
Affordability and mortgage rates
Affordability looks at your monthly payment compared to your income. Mortgage rates are often the biggest driver of the payment.
Why it matters: Small rate changes can make a noticeable difference in what you can afford. Check the latest national rate trend through Freddie Mac’s weekly survey at the Freddie Mac Primary Mortgage Market Survey.
Listing strategy terms
- Price drop or price improvement: a change to generate fresh interest.
- Pocket listing: a property marketed off the MLS to a limited audience. Policies vary, so ask your agent what is allowed locally.
Contract terms you will encounter
Earnest money deposit
Earnest money is a buyer’s deposit held in escrow to show commitment. The amount and refund rules depend on your contract and contingencies.
Contingencies
Contingencies let one side exit or renegotiate if certain conditions are not met. Common ones include inspection, financing and appraisal, clear title, and sale of the buyer’s current home.
Inspection period and repairs
The inspection period lets you evaluate the home and request repairs or credits. Older Des Moines homes often need routine items like roof, HVAC, or foundation maintenance. Some areas also watch for water or basement issues. For city projects that can affect properties, visit the City of Des Moines.
Title search and title insurance
A title search checks for liens or claims. Title insurance protects you and your lender against covered title issues. Local records are maintained by the county; start at the Polk County site for property and tax information.
Closing costs
Closing costs include title fees, lender charges, prorated taxes, and escrow items. Buyers and sellers together often see total costs in the range of 2 to 5 percent of the sale price, though it varies by transaction.
Escrow process and timing
An escrow holder manages funds and documents until closing. In Iowa, timelines vary by deal and lender. Your agent and title company can estimate the schedule once you are under contract.
Agency disclosures
Iowa rules require disclosures about who represents whom. Know whether your agent represents only you or is acting in a different role. For statewide guidance and consumer resources, you can reference the Iowa Association of REALTORS.
HOA rules and fees
Townhomes and some new subdivisions in the metro have homeowner associations. Review covenants, fees, and policies early. They affect both monthly costs and resale.
Short sales, REOs, and foreclosures
These distressed sales follow different processes and can take longer. Ask what timelines and risks to expect before you make an offer.
Assessed vs. market value
Assessed value is used for property taxes and can lag the market. Market value is what a buyer will pay today. For local assessments and tax info, use the Polk County property pages.
How Des Moines context shapes your move
Jobs and growth
Greater Des Moines has a strong base in insurance, financial services, state government, and healthcare. Job trends influence housing demand. For local economy updates and employer news, start with the Greater Des Moines Partnership.
Seasonality and submarkets
Spring and early summer are typically the busiest for listings and showings. Activity often slows in winter. Neighborhoods vary, so compare submarkets. Central Des Moines, older districts, and suburbs like Ankeny, Bondurant, and Altoona can show different price ranges, inventory, and buyer timelines.
New construction and permits
New subdivisions and multifamily projects add supply across Polk County. Check local planning departments and permits for what is coming next. City sites, including the City of Des Moines, share planning and zoning resources.
Flood risk and infrastructure
The Des Moines River and floodplain management influence insurability and values in some areas. Review official flood maps before you buy using the FEMA Map Service Center. For local flood protection projects and ordinances, visit the City of Des Moines.
Property taxes and schools
Property taxes in Polk County are based on assessed value and local levies that include city, county, and school district portions. For assessments, tax statements, and property lookups, use Polk County. If school boundaries are important, verify current district maps directly with the district.
Turn terms into smart decisions
Here is how to put these metrics to work in Polk County:
For buyers
- Track months of supply, median DOM, and sale-to-list ratio in your target neighborhoods. Less supply and shorter DOM mean you should be ready to act fast.
- Lock in your budget using current mortgage rates from the Freddie Mac PMMS and a lender’s payment estimates that include local taxes and insurance.
- Use recent comps within the last 3 to 6 months to set your max offer. Adjust for updates, lot, and condition, not just price per square foot.
- Keep key protections. If competition is high, consider a stronger earnest deposit or a shorter inspection window instead of waiving critical contingencies.
For sellers
- Price against the most similar comps and the current sale-to-list ratio. If DOM is short in your micro-area, a strong launch price can maximize exposure.
- Watch inventory. If months of supply rises, build in more time for showings and consider small price improvements rather than big cuts.
- Prepare for inspection. Address obvious fixes that older Des Moines homes commonly need. Clean title and HOA documents help you close smoothly.
For quick local checks
- Sold prices on your street: review public records through Polk County and ask your agent for MLS-verified comps.
- Flood risk: search your address on the FEMA Map Service Center and ask your insurance provider about coverage.
- Local economic context: monitor employer and growth news from the Greater Des Moines Partnership.
Ready to make a move with a clear plan? I combine neighborhood data with hands-on guidance so you can buy or sell with confidence. Amer M Real Estate can help you price, search, and negotiate the right way. Get your free home valuation today.
FAQs
What does months of supply mean in Polk County?
- It is how many months it would take to sell current listings at today’s pace. Around 6 months is often called balanced, under 3 is tighter for buyers, and over 6 leans toward buyers, per common industry guidance summarized by NAR Research and Statistics.
How do I find Des Moines floodplain information for a home?
- Enter the address in the FEMA Map Service Center for official flood maps, then confirm insurance requirements with your lender and insurer.
Where can I verify Polk County property taxes and assessments?
- Use the county’s public resources at Polk County to look up assessed values, tax history, and basic parcel information.
How do mortgage rates affect my Des Moines home budget?
- Higher rates raise monthly payments and reduce purchasing power. Check the current trend through the Freddie Mac PMMS and run scenarios with your lender.
What is the sale-to-list price ratio telling me locally?
- It shows how close sales are to their original list prices. Over 100 percent suggests frequent multiple offers, while 95 to 100 percent suggests modest negotiating room.
Are median or average prices better for my neighborhood?
- Median is usually better because it avoids skew from outliers. In areas with few sales, compare several months and confirm with MLS comps from a local agent.
