With pending home sales down about 7% year over year, the Des Moines real estate market is showing early signs of a slowdown. But house prices are still up 12% from May 2021.

Driving the news: We keep hearing about a stock market crash, but so far the local data does not support this claim.

Yes, but: The monthly data shows the first signs of a calmer, albeit light, market.

What is happening: From May 2021 to May 2022, new listings decreased by 5.2%.

  • More buyers are waiting as home ownership becomes too expensive.
  • This comes after mortgage rates topped 5% for the first time in 10 years.
  • Fewer homes sold above asking price. There was a 6.8 percentage point drop in the number of homes sold at a premium in June compared to a year ago, according to Redfin.

Zoom out: Nationally, mortgage applications fell 24% and, on average, 6.5% of sellers lowered their asking price each week in June, per Redfin’s last market update.

  • In June, national pending home sales were down 13% from the same time last year, the biggest drop since May 2020, according to Redfin’s report.

Be smart: Inventories are still extremely low overall, which continues to drive up home prices.

What we are looking at: New listings and sales pending. If more listings flood the market this summer and buyers don’t bite, that’s when we’ll start to see more power flowing through the hands of buyers.

At the end of the line : We don’t see any major changes yet in Des Moines, but we are starting to see the first signs of a cooling in the market.

Data: Redfin; Graphic: Kavya Beheraj/Axios