June 2018 Sioux Falls Housing Market Statistics
RASE June 2018 Housing Market Statistical Reporting
Sioux Falls, SD – June 5th 2018:
Monthly Market Indicators
Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price. While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015. Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.
New Listings in the Sioux Falls region decreased 7.5 percent to 688. Pending Sales were up 27.3 percent to 718. Inventory levels fell 20.1 percent to 1,424 units.
Prices continued to gain traction. The Median Sales Price increased 6.5 percent to $215,000. Days on Market was down 6.1 percent to 77 days. Sellers were encouraged as Months Supply of Homes for Sale was down 24.4 percent to 3.4 months.
Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing. The housing supply outlook in several markets is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs in an already healthy marketplace.
Housing Supply Overview
We are firmly within summer during an economically strong year in the U.S., thus real estate activity is busy. There are still generally more buyers than sellers in most price and housing style categories, so prices will continue to rise until that situation changes. For the 12-month period spanning July 2017 through June 2018, Pending Sales in the Sioux Falls region were up 5.1 percent overall. The price range with the largest gain in sales was the $900K to $1M range, where they increased 60.0 percent.
The overall Median Sales Price was up 5.8 percent to $196,700. The construction type with the largest price gain was the Previously Owned segment, where prices increased 4.6 percent to $190,424. The price range that tended to sell the quickest was the $100K to $150K range at 70 days; the price range that tended to sell the slowest was the $1M and Above range at 215 days.
Market-wide, inventory levels were down 20.1 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 17.3 percent. That amounts to 3.4 months supply for Single-Family homes and 3.5 months supply for Condos.
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