June 2023 Sioux Falls Housing Market Statistics
RASE June 2023 Housing Market Statistical Reporting
Sioux Falls, SD – July 6, 2023:
Monthly Market Indicators
Temperatures are heating up, yet the U.S. housing market remains cooler than usual for this time of year due to a combination of low inventory and higher borrowing costs, which have restricted market activity going into the summer homebuying season. According to the latest data from the National Association of REALTORS® (NAR), national existing-home sales climbed 0.2% from the previous month but were down 20.4% compared to the same time last year, as fluctuating mortgage rates and a near all-time low level of inventory continue to influence home sales.
New Listings in the Sioux Falls region increased 0.1 percent to 681. Pending Sales were up 21.8 percent to 636. Inventory levels fell 2.3 percent to 1,350 units.
Prices continued to gain traction. The Median Sales Price increased 1.6 percent to $320,000. Days on Market was up 1.4 percent to 74 days. Buyers felt empowered as Months Supply of Homes for Sale was up 16.1 percent to 3.6 months.
Nationwide, total housing inventory increased 3.8% from the previous month, for a 3-month’s supply at the current sales pace. The shortage of homes for sale has kept prices high for remaining buyers, with a national median sales price of $396,100 as of last measure, a 3.1% decline from the same time last year and the largest annual decrease since December 2011, according to NAR. As demand continues to outpace supply, properties are selling quickly, with the majority of homes listed for sale on the market for less than a month.
Housing Supply Overview
Limited existing-home inventory continues to be a boon for homebuilders, who have ramped up production to meet the rising demand in the newhome market. Housing starts were up 21.7% month-over-month as of last measure, the fastest pace in more than a year, while housing permits increased 5.2% month-over-month, according to the U.S. Census Bureau. Renewed interest in new homes this year has helped builder confidence increase to its highest level since July 2022, according to the NAHB / Wells Fargo Housing Market Index (HMI). For the 12-month period spanning July 2022 through June 2023, Pending Sales in the Sioux Falls region were down 16.5 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 9.1 percent to $300,000. The construction type with the largest price gain was the New Construction segment, where prices increased 12.5 percent to $371,195. The price range that tended to sell the quickest was the $200K to $250K range at 59 days; the price range that tended to sell the slowest was the $1M and Above range at 119 days.
Market-wide, inventory levels were down 2.3 percent. The construction type that gained the most inventory was the New Construction segment, where it increased 25.7 percent. That amounts to 3.5 months supply for Single-Family homes and 4.4 months supply for Condos.