March 2022 Sioux Falls Housing Market Statistics
RASE March 2022 Housing Market Statistical Reporting
Sioux Falls, SD – April 7th, 2022
Monthly Market Indicators
Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.
New Listings in the Sioux Falls region decreased 22.4 percent to 470. Pending Sales were up 39.2 percent to 504. Inventory levels fell 42.6 percent to 756 units.
Prices continued to gain traction. The Median Sales Price increased 10.4 percent to $265,575. Days on Market was down 11.4 percent to 78 days. Sellers were encouraged as Months Supply of Homes for Sale was down 42.9 percent to 1.6 months.
Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.
Housing Supply Overview
Millennials are entering the housing market at a record pace, fueling demand and driving sales prices higher amid an epic housing shortage. Currently, millennials represent 22% of the U.S. population but make up 43% of the current market share, according to a survey by the National Association of REALTORS®. With nearly a quarter of the population approaching their peak earning years over the next two decades, this new generation of homebuyers are expected to have a big impact on the economy—and on the housing market—in the years to come. For the 12-month period spanning April 2021 through March 2022, Pending Sales in the Sioux Falls region were up 2.3 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 208.0 percent.
The overall Median Sales Price was up 11.9 percent to $262,500. The construction type with the largest price gain was the New Construction segment, where prices increased 21.1 percent to $314,950. The price range that tended to sell the quickest was the $150K to $200K range at 6 days; the price range that tended to sell the slowest was the $900K to $1M range at 117 days.
Market-wide, inventory levels were down 42.6 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 41.2 percent. That amounts to 1.6 months supply for Single-Family homes and 1.4 months supply for Condos.