February 2023 Sioux Falls Housing Market Statistics

February 2023 Sioux Falls Housing Market Statistics

March 12, 2023 by

RASE February 2023 Housing Market Statistical Reporting
Sioux Falls, SD – March 9, 2023:

Monthly Market Indicators

In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% – 4.75%, its 8th rate hike since March of last year, when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-to-month as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing home sales declining for the twelfth consecutive month, according to the National Association of Realtors® (NAR).

New Listings in the Sioux Falls region decreased 24.1 percent to 312. Pending Sales were up 15.7 percent to 280. Inventory levels fell 10.4 percent to 943 units.

Prices continued to gain traction. The Median Sales Price increased 7.0 percent to $289,000. Days on Market was down 5.9 percent to 80 days. Buyers felt empowered as Months Supply of Homes for Sale was up 4.3 percent to 2.4 months.

With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into spring.

View Monthly Indicators - Full Report

Housing Supply Overview

Purchases of new single-family homes increased 7.2% month-over-month as of last measure, exceeding economists’ expectations and rising to the highest level in nearly a year, according to the US Census Bureau. The limited supply of existing homes on the market, along with lower mortgage interest rates, softening sales prices, and a rise in the number of builders offering sales incentives, helped boost new home purchases, causing builder confidence to increase for the second consecutive month in February. For the 12-month period spanning March 2022 through February 2023, Pending Sales in the Sioux Falls region were down 14.6 percent overall. The price range with the largest gain in sales was the $900K to $1M range, where they increased 76.5 percent.

The overall Median Sales Price was up 14.0 percent to $297,000. The construction type with the largest price gain was the New Construction segment, where prices increased 14.3 percent to $350,000. The price range that tended to sell the quickest was the $200K to $250K range at 61 days; the price range that tended to sell the slowest was the $1M and Above range at 98 days.

Market-wide, inventory levels were down 10.4 percent. The construction type that gained the most inventory was the New Construction segment, where it increased 17.6 percent. That amounts to 2.3 months supply for Single-Family homes and 3.2 months supply for Condos.

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Posted in: Sioux Falls Housing Stats, Sioux Falls Real Estate News

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