February 2022 Sioux Falls Housing Market Statistics
RASE February 2022 Housing Market Statistical Reporting
Sioux Falls, SD – Feb 14th, 2022
Monthly Market Indicators
The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.
New Listings in the Sioux Falls region decreased 7.9 percent to 362. Pending Sales were up 32.0 percent to 384. Inventory levels fell 42.2 percent to 660 units.
Prices continued to gain traction. The Median Sales Price increased 13.8 percent to $270,000. Days on Market was down 7.8 percent to 83 days. Sellers were encouraged as Months Supply of Homes for Sale was down 41.7 percent to 1.4 months.
Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.
Housing Supply Overview
With a shortage of existing homes for sale, many prospective buyers are turning to new construction for their next home purchase. But with rising construction costs, many buyers are finding they can’t afford to purchase a new home. Nearly 7 out of 10 U.S. households can’t afford a new median-priced home, according to data recently released by the National Association of Home Builders (NAHB), which found that 69% of U.S. households lack the income to qualify for a mortgage of $412,506 using standard underwriting criteria. For the 12-month period spanning March 2021 through February 2022, Pending Sales in the Sioux Falls region were up 2.2 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 165.4 percent.
The overall Median Sales Price was up 12.4 percent to $260,700. The construction type with the largest price gain was the New Construction segment, where prices increased 17.9 percent to $306,300. The price range that tended to sell the quickest was the $150K to $200K range at 66 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 42.2 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 42.1 percent. That amounts to 1.3 months supply for Single-Family homes and 1.7 months supply for Condos.