Every market is unique, yet the national sentiment has given rise to the notion that housing markets are stalling. Although desirous buyers are out on an increasing number of showings, there remains a limited number of desirable listings. And although mortgage rates have remained enticingly low, home prices have reached unaffordable levels for many new entrants into the housing pool at exactly the same time that established owners are proving to be less interested in moving.
New Listings in Sioux Falls decreased 2.3 percent to 476. Closed Sales were up 0.6 percent to 351. Inventory levels fell 6.1 percent to 1,169 units.
Prices continued to gain traction. The Median Sales Price increased 7.2 percent to $203,600. Days on Market was down 6.5 percent to 74 days. Sellers were encouraged as Months Supply of Homes for Sale was down 11.4 percent to 4.2 months.
Last year at this time, the national storyline was about how high demand was propping up sales and prices despite low inventory and months of supply. That has actually continued to be a familiar refrain for many months in 2017 and now for the past couple of years. But with the likes of Hurricanes Harvey and Irma, different employment outlooks, disparate incomes, varying new construction expectations and potential housing policy shifts, regional differences are becoming more prevalent and pronounced.
Housing Supply Overview
Low housing supply is both a month-over-month and now multiple year- over-year happening. Lawrence Yun, Chief Economist for the National Association of REALTORS®, has gone as far as saying that the national housing market is essentially stalled. For the 12-month period spanning October 2016 through September 2017, Closed Sales in Sioux Falls were up 2.1 percent overall.
The overall Median Sales Price was up 7.0 percent to $199,623.
Market-wide, inventory levels were down 16.7 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 2.3 percent. That amounts to 3.6 months supply for Single-Family homes and 3.9 months supply for Condos.
– 10k Research & Marketing