March 2023 Sioux Falls Housing Market Statistics
RASE March 2023 Housing Market Statistical Reporting
Sioux Falls, SD – April 9, 2023:
Monthly Market Indicators
Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring , increasing for the third consecutive month, according to NAR.
New Listings in the Sioux Falls region decreased 5.2 percent to 490. Pending Sales were up 16.6 percent to 400. Inventory levels fell 13.5 percent to 1,009 units.
Prices continued to gain traction. The Median Sales Price increased 6.7 percent to $284,900. Days on Market was up 7.5 percent to 86 days. Absorption rates were even with last year as Months Supply of Homes for Sale remained flat at 2.6 months.
Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.
Housing Supply Overview
According to the U.S. Census Bureau, national sales of new homes edged up 1.1% month-over-month as of last measure, thanks in part to builders’ use of incentives and price discounts, with increases in housing starts and permits reported as well. Builder sentiment also continues to rise, as a limited supply of existing-home inventory has led to an uptick in newhome demand. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence increased for the third consecutive month in March, rising two points to 44 from the previous month, marking a six-month high. For the 12-month period spanning April 2022 through March 2023, Pending Sales in the Sioux Falls region were down 14.9 percent overall. The price range with the largest gain in sales was the $900K to $1M range, where they increased 93.8 percent.