January 2022 Sioux Falls Housing Market Statistics

January 2022 Sioux Falls Housing Market Statistics

February 14, 2022 by

RASE January 2022 Housing Market Statistical Reporting
Sioux Falls, SD – Feb 14th, 2022

Monthly Market Indicators

The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® reporting sales were up 8.5% compared to the previous year as homebuyers rushed to take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.

New Listings in the Sioux Falls region decreased 15.7 percent to 322. Pending Sales were up 41.5 percent to 406. Inventory levels fell 43.8 percent to 610 units.

Prices continued to gain traction. The Median Sales Price increased 15.7 percent to $269,900. Days on Market was down 8.8 percent to 83 days. Sellers were encouraged as Months Supply of Homes for Sale was down 45.8 percent to 1.3 months.

For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes was at 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.

View Monthly Indicators - Full Report

Housing Supply Overview

The average 30-year fixed-rate mortgage ended the month at 3.55%, nearly a full point higher than the low of 2.65% recorded in January 2020, with residential borrowing costs now the highest they’ve been since March 2020, according to Freddie Mac. As rates continue to rise, home rice growth is predicted to increase at a more moderate pace. While declining home affordability may temper buyer activity, the chronic lack of supply across most housing market segments appears unlikely to change significantly in the near future. For the 12-month period spanning February 2021 through January 2022, Pending Sales in the Sioux Falls region were up 3.5 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 191.7 percent.

The overall Median Sales Price was up 13.0 percent to $260,000. The construction type with the largest price gain was the New Construction segment, where prices increased 14.0 percent to $294,900. The price range that tended to sell the quickest was the $150K to $200K range at 69 days; the price range that tended to sell the slowest was the $900K to $1M range at 152 days.

Market-wide, inventory levels were down 43.8 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 36.4 percent. That amounts to 1.2 months supply for Single-Family homes and 1.5 months supply for Condos.

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

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