November 2019 Sioux Falls Housing Market Statistics
RASE November 2019 Housing Market Statistical Reporting
Sioux Falls, SD – December 5, 2019
Monthly Market Indicators
In November, the Federal Reserve reduced its benchmark rate for the third time this year. This action was widely anticipated by the market. Mortgage rates have remained steady this month and are still down more than 1 percent from last year at this time. Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units.
New Listings in the Sioux Falls region decreased 3.6 percent to 376. Pending Sales were up 28.8 percent to 479. Inventory levels fell 9.1 percent to 1,427 units.
Prices continued to gain traction. The Median Sales Price increased 14.7 percent to $222,250. Days on Market was up 2.5 percent to 82 days. Sellers were encouraged as Months Supply of Homes for Sale was down 7.7 percent to 3.6 months.
While many economic signs are quite strong, total household debt has been rising for twenty-one consecutive quarters and is now $1.3 trillion higher than the previous peak of $12.68 trillion in 2008. While delinquency rates remain low across most debt types (including mortgages), higher consumer debt loads can limit future household spending capability and increase risk if the economy slows down.
Housing Supply Overview
According to the U.S. Commerce Department, new housing permits rose 5% in October to a new 12-year high of 1.46 million units. Lawrence Yun, the National Association of REALTORS® chief economist, the latest figures “tremendously good news for the housing sector.” While increasing new construction activity is helpful, it is widely believed that construction activity is still below what is needed to provide adequate housing supply. For the 12-month period spanning December 2018 through November 2019, Pending Sales in the Sioux Falls region were down 1.0 percent overall. The price range with the largest gain in sales was the $900K to $1M range, where they increased 50.0 percent.
The overall Median Sales Price was up 4.9 percent to $213,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 6.2 percent to $207,000. The price range that tended to sell the quickest was the $150K to $200K range at 73 days; the price range that tended to sell the slowest was the $800K to $900K range at 151 days.
Market-wide, inventory levels were down 9.1 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 5.9 percent. That amounts to 3.4 months supply for Single-Family homes and 4.2 months supply for Condos.
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