February 2018 Sioux Falls Housing Market Statistics
RASE February 2018 Housing Market Statistical Reporting
Sioux Falls, SD – March 7, 2018:
Monthly Market Indicators
The three most prominent national market trends for residential real estate are the ongoing lack of abundant inventory, the steadily upward movement of home prices and year-over-year declines in home sales. Sales declines are a natural result of there being fewer homes for sale, but higher prices often indicate higher demand leading to competitive bidding. Markets are poised for increased supply, so there is hope that more sellers will take advantage of what appears to be a ready and willing buyer base.
New Listings in the Sioux Falls region decreased 6.4 percent to 395. Pending Sales were up 70.8 percent to 362. Inventory levels fell 17.8 percent to 1,146 units.
Prices continued to gain traction. The Median Sales Price increased 7.8 percent to $189,500. Days on Market remained flat at 105 days. Sellers were encouraged as Months Supply of Homes for Sale was down 25.0 percent to 2.7 months.
In February, prevailing mortgage rates continued to rise. This has a notable impact on housing affordability and can leave consumers choosing between higher payments or lower-priced homes. According to the Mortgage Bankers Association, the average rate for 30-year fixed-rate mortgages with a 20 percent down payment that qualify for backing by Fannie Mae and Freddie Mac rose to its highest level since January 2014. A 4.5 or 4.6 percent rate might not seem high to those with extensive real estate experience, but it is newly high for many potential first-time home buyers. Upward rate pressure is likely to continue as long as the economy fares well.
Housing Supply Overview
Mortgage rates are on the rise. When this happens, it means that buyers in the lower-priced categories tend to have the dilemma of choosing to pay more for their desired home, paying less to get less, waiting for more listings or saving more money toward a downpayment. For the 12-month period spanning March 2017 through February 2018, Pending Sales in the Sioux Falls region were up 7.6 percent overall. The price range with the largest gain in sales was the $1M and Above range, where they increased 121.4 percent.
The overall Median Sales Price was up 4.9 percent to $191,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 4.8 percent to $186,000. The price range that tended to sell the quickest was the $100K to $150K range at 71 days; the price range that tended to sell the slowest was the $800K to $900K range at 187 days.
Market-wide, inventory levels were down 17.8 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 10.7 percent. That amounts to 2.7 months supply for Single-Family homes and 3.3 months supply for Condos.
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