May 2022 Sioux Falls Housing Market Statistics

May 2022 Sioux Falls Housing Market Statistics

June 22, 2022 by

RASE May 2022 Housing Market Statistical Reporting
Sioux Falls, SD – June 8, 2022:

Monthly Market Indicators

After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring home ownership costs. The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.

New Listings in the Sioux Falls region decreased 7.3 percent to 521. Pending Sales were up 38.6 percent to 635. Inventory levels fell 40.7 percent to 904 units.

Prices continued to gain traction. The Median Sales Price increased 21.7 percent to $310,367. Days on Market was down 5.7 percent to 66 days. Sellers were encouraged as Months Supply of Homes for Sale was down 42.4 percent to 1.9 months.

The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace. As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next 5 years.

View Monthly Indicators - Full Report

Housing Supply Overview

A spike in mortgage rates, increased building costs, and record-setting new home prices continue to take their toll on the construction industry, as new single-family home sales plunged 16.6% month-over-month, according to recent data from the Commerce Department. With the median price of a newly built home a record $450,600 as of last measure, declining affordability continues to hamper demand, as mortgage applications for new home purchases fell 10.6% compared to a year ago, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS). For the 12-month period spanning June 2021 through May 2022, Pending Sales in the Sioux Falls region were up 3.9 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 159.4 percent.

The overall Median Sales Price was up 13.9 percent to $270,000. The construction type with the largest price gain was the New Construction segment, where prices increased 26.1 percent to $329,775. The price range that tended to sell the quickest was the $150K to $200K range at 65 days; the price range that tended to sell the slowest was the $900K to $1M range at 123 days.

Market-wide, inventory levels were down 40.7 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 39.0 percent. That amounts to 1.9 months supply for Single-Family homes and 1.6 months supply for Condos.

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Posted in: Sioux Falls Housing Stats, Sioux Falls Real Estate News

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