July 2017 Sioux Falls Housing Market Statistics
RASE June 2017 Housing Market Statistical Reporting
Sioux Falls, SD – Aug 4, 2017:
Monthly Market Indicators
How long can the residential real estate market go on like this? We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller's market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day. It is evident that a favorable economy keeps hungry buyers in the chase.
New Listings in the Sioux Falls region increased 8.9 percent to 624. Pending Sales were up 31.2 percent to 614. Inventory levels fell 20.3 percent to 1,489 units.
Prices were fairly stable. The Median Sales Price decreased 0.1 percent to $189,900. Days on Market was down 14.5 percent to 71 days. Sellers were encouraged as Months Supply of Homes for Sale was down 29.4 percent to 3.6 months.
Although the unemployment rate remains unchanged at its favorable national 4.3 percent rate, wage growth has not been rising at the steady clip that would be expected in an improving economy. Sales activity manages to keep churning along despite looming shortages in new construction. Lower price ranges are starting to feel the effects of the supply and demand gap, as first-time buyers scramble to get offers in at an increasing pace.
Housing Supply Overview
Local news outlets across the nation have been delving into the cause for lower sales totals in their markets during a period of economic growth, and it generally boils down to a lack of housing supply, especially in certain price ranges, to meet buyer demand. For the 12-month period spanning August 2016 through July 2017, Pending Sales in the Sioux Falls region were up 12.8 percent overall. The price range with the largest gain in sales was the $1M and Above range, where they increased 200.0 percent.
The overall Median Sales Price was up 5.1 percent to $186,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 6.7 percent to $182,450. The price range that tended to sell the quickest was the $100K to $150K range at 73 days; the price range that tended to sell the slowest was the $800K to $900K range at 171 days.
Market-wide, inventory levels were down 20.3 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 7.9 percent. That amounts to 3.6 months supply for Single-Family homes and 3.6 months supply for Condos.
- 10k Research & Marketing
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