August 2017 Sioux Falls Housing Market Statistics
RASE August 2017 Housing Market Statistical Reporting
Sioux Falls, SD – Aug 4, 2017:
Monthly Market Indicators
August tends to mark the waning of housing activity ahead of the school year. Not all buyers and sellers have children, but there are enough parents that do not want to uproot their children during the school year to historically create a natural market cooldown before any actual temperature change. Competition is expected to remain fierce for available listings. Savvy sellers and buyers know that deals can be made well into the school months, as household formations take on many shapes and sizes.
New Listings in the Sioux Falls region increased 1.0 percent to 681. Pending Sales were up 39.1 percent to 669. Inventory levels fell 20.6 percent to 1,507 units.
Prices continued to gain traction. The Median Sales Price increased 3.8 percent to $194,450. Days on Market was down 1.3 percent to 78 days. Sellers were encouraged as Months Supply of Homes for Sale was down 29.4 percent to 3.6 months.
The prevailing trends lasted through summer. This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable. Every locality has its unique challenges, but the whole of residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018.
Housing Supply Overview
Although new construction has yet to come to the rescue of low inventory, there are signs that demand for construction materials is high and that previous measurements of low construction activity have been weighed down by the public sector not private, residential building. For the 12-month period spanning September 2016 through August 2017, Pending Sales in the Sioux Falls region were up 11.5 percent overall. The price range with the largest gain in sales was the $1M and Above range, where they increased 141.7 percent.
The overall Median Sales Price was up 4.7 percent to $187,500. The construction type with the largest price gain was the Previously Owned segment, where prices increased 5.8 percent to $183,000. The price range that tended to sell the quickest was the $100K to $150K range at 74 days; the price range that tended to sell the slowest was the $800K to $900K range at 176 days.
Market-wide, inventory levels were down 20.6 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 14.6 percent. That amounts to 3.6 months supply for Single-Family homes and 3.9 months supply for Condos.
- 10k Research & Marketing
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