November 2017 Sioux Falls Housing Market Statistics
RASE November 2017 Housing Market Statistical Reporting
Sioux Falls, SD – December 6, 2017:
Monthly Market Indicators
The facts of residential real estate have remained consistent in 2017. In year-over year comparisons, the number of homes for sale has been fewer in most locales, and homes have been selling in fewer days for higher prices. This hasn’t always been true, but it has been a common enough storyline to make it an overarching trend for the year.
New Listings in the Sioux Falls region increased 0.8 percent to 383. Pending Sales were up 44.8 percent to 443. Inventory levels fell 17.2 percent to 1,283 units.
Prices continued to gain traction. The Median Sales Price increased 5.6 percent to $188,500. Days on Market was down 6.8 percent to 82 days. Sellers were encouraged as Months Supply of Homes for Sale was down 22.5 percent to 3.1 months.
New tax legislation could have ramifications on housing. The White House believes that the tax reform bill will have a small impact on home prices, lowering them by less than 4 percent, and could conceivably boost home ownership. The National Association of REALTORS® has stated that eliminating the mortgage interest deduction could hurt housing, as the doubled standard deduction would reduce the desire to take out a mortgage and itemize the interest associated with it, thus reducing demand. This is a developing story.
Housing Supply Overview
The primary housing storyline for the past two years remains the same. Demand is high, supply is low and interest rates have been steady. There are a few signs that indicate an increase in the number of homes for sale in 2018. For now, inventory remains low in most submarkets. For the 12-month period spanning December 2016 through November 2017, Pending Sales in the Sioux Falls region were up 7.0 percent overall. The price range with the largest gain in sales was the $1M and Above range, where they increased 100.0 percent.
The overall Median Sales Price was up 5.5 percent to $189,900. The construction type with the largest price gain was the Previously Owned segment, where prices increased 5.7 percent to $185,000. The price range that tended to sell the quickest was the $100K to $150K range at 73 days; the price range that tended to sell the slowest was the $800K to $900K range at 216 days.
Market-wide, inventory levels were down 17.2 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 16.3 percent. That amounts to 3.0 months supply for Single-Family homes and 3.8 months supply for Condos.
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