January 2018 Sioux Falls Housing Market Statistics
RASE January 2018 Housing Market Statistical Reporting
Sioux Falls, SD – Feb 7, 2018:
Monthly Market Indicators
Last year, U.S. consumers seemed to be operating with a renewed but cautious optimism. The stock market was strong, wages were edging upwards and home buying activity was extremely competitive. Not much has changed in 2018 in terms of those measures, yet there is a sort of seasoned prudence mixed into the high emotions that go with a major expense like a home purchase. We are now several years deep into a period of rising prices and low inventory. Those in the market to buy a home have caught on. As sellers attempt take advantage of rising prices, expect buyers to be more selective.
New Listings in the Sioux Falls region increased 1.7 percent to 413. Pending Sales were up 43.1 percent to 302. Inventory levels fell 11.3 percent to 1,124 units.
Prices continued to gain traction. The Median Sales Price increased 4.1 percent to $192,500. Days on Market was up 6.4 percent to 100 days. Sellers were encouraged as Months Supply of Homes for Sale was down 18.2 percent to 2.7 months.
Whatever external forces are placed upon residential real estate markets across the country – whether they are related to tax legislation, mortgage rates, employment situation changes, new family formations, the availability of new construction and the like – the appetite for home buying remains strong enough to drive prices upward in virtually all markets across the country. New sales are not necessarily following that trend, but monthly increases are expected until at least late summer.
Housing Supply Overview
As we enter 2018, it will be most interesting to watch demand dynamics, as home sales have been lower in several markets over the last few months. Whether this is related to there being not enough homes for sale, prices getting too high or less buyer interest remains to be seen. For the 12-month period spanning February 2017 through January 2018, Pending Sales in the Sioux Falls region were up 5.9 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 4.7 percent to $190,500. The construction type with the largest price gain was the Previously Owned segment, where prices increased 4.4 percent to $185,000. 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 190 days.
Market-wide, inventory levels were down 11.3 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 11.1 percent. That amounts to 2.6 months supply for Single-Family homes and 3.4 months supply for Condos.
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