April 2022 Sioux Falls Housing Market Statistics
RASE April 2022 Housing Market Statistical Reporting
Sioux Falls, SD – May 5th, 2022
Monthly Market Indicators
The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
New Listings in the Sioux Falls region decreased 9.4 percent to 569. Pending Sales were up 35.5 percent to 550. Inventory levels fell 40.1 percent to 886 units.
Prices continued to gain traction. The Median Sales Price increased 17.6 percent to $292,500. Days on Market was down 17.4 percent to 71 days. Sellers were encouraged as Months Supply of Homes for Sale was down 40.6 percent to 1.9 months.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.
Housing Supply Overview
The share of Americans planning to purchase a home in the next year is falling, according to NAHB’s Housing Trends Report, with only 13% of adults intending to purchase a home in the next 12 months, the lowest level since mid-2020. Declining affordability and low inventory have made it difficult for many buyers to compete in the current market, as rising inflation, surging interest rates, and record high sales prices have priced an increasing number of prospective buyers out of the market. For the 12-month period spanning May 2021 through April 2022, Pending Sales in the Sioux Falls region were up 2.4 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 189.3 percent.
The overall Median Sales Price was up 11.9 percent to $262,500. The construction type with the largest price gain was the New Construction segment, where prices increased 21.1 percent to $314,950. The price range that tended to sell the quickest was the $150K to $200K range at 6 days; the price range that tended to sell the slowest was the $900K to $1M range at 117 days.
Market-wide, inventory levels were down 40.1 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 36.9 percent. That amounts to 2.0 months supply for Single-Family homes and 1.4 months supply for Condos.