May 2023 Sioux Falls Housing Market Statistics

May 2023 Sioux Falls Housing Market Statistics

June 12, 2023 by

RASE May 2023 Housing Market Statistical Reporting
Sioux Falls, SD – June 3, 2023:

Monthly Market Indicators

Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. 

Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.

New Listings in the Sioux Falls region increased 16.2 percent to 652. Pending Sales were up 24.8 percent to 569. Inventory levels fell 4.2 percent to 1,285 units.

Prices continued to gain traction. The Median Sales Price increased 1.1 percent to $310,350. Days on Market was up 5.8 percent to 73 days. Buyers felt empowered as Months Supply of Homes for Sale was up 13.3 percent to 3.4 months.

While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.

View Monthly Indicators - Full Report

Housing Supply Overview

New residential construction continues to pick up steam, as limited existing-home inventory drives buyer demand toward the new construction market. Monthly new-home sales exceeded economists’ expectations once again, rising 4.1% to a seasonally adjusted annual rate of 683,000 units, the highest reading since March 2022, according to the U.S. Census Bureau. Housing starts were up 2.2% month-over-month, reflecting gains in both single-family and multifamily construction, while permits for future single-family homes reached a 7-month high. For the 12-month period spanning June 2022 through May 2023, Pending Sales in the Sioux Falls region were down 16.4 percent overall. The price range with the largest gain in sales was the $900K to $1M range, where they increased 81.3 percent.

The overall Median Sales Price was up 11.1 percent to $299,900. The construction type with the largest price gain was the Previously Owned segment, where prices increased 9.8 percent to $290,000. The price range that tended to sell the quickest was the $200K to $250K range at 60 days; the price range that tended to sell the slowest was the $1M and Above range at 116 days.

Market-wide, inventory levels were down 4.2 percent. The construction type that gained the most inventory was the New Construction segment, where it increased 36.2 percent. That amounts to 3.3 months supply for Single-Family homes and 4.1 months supply for Condos.

View Housing Supply - Full Report

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

2024 Photos & Text Copyright - © Sioux Falls Real Estate Group Hegg Realtors
Real Estate Web Design by 3plains

Back To Top