As I recall, Argent is in a smallish southern/southeastern Iowa town. Get out of the top 10 metro areas in Iowa and housing is cheap. The flipside is it doesn't appreciate hardly at all (unless you are putting a lot of money into it).I don't know where you are living that an average house is that price. those are the ones that need major work/upgrades to begin with or are absolutely tiny.
When we lived in Gladbrook (20mi NNE of Marshalltown) we had a place on 2.5 acres with a brick barn. I think we paid like $110k. When we decided to move to Ames 7 years later, we sold it for like $118k. That was after replacing the entire septic system, rewiring the house and barn including electrical panels, finishing the basement, installing premium vinyl windows, and new flooring throughout.
Now in Mount Vernon, WA, a town pretty comparable to Marshalltown except that its 60 miles north of Seattle, our first house cost like $235k in 2012. Last year we sold it for about $325k and we'd made basically no improvements.