Monthly Market Indicators
The number of homes for sale, days on market and months of supply were all down in year-over-year comparisons in a majority of the country for the entirety of 2017, as was housing affordability. And although total sales volumes were mixed, prices were consistently up in most markets. Buyers may not benefit from higher prices, but sellers do, and there should be more listing activity by more confident sellers in 2018. At least that would be the most viable prediction for an economic landscape pointing toward improved conditions for sellers.
New Listings in Sioux Falls increased 15.7 percent to 162. Closed Sales were up 6.4 percent to 249. Inventory levels fell 12.8 percent to 738 units.
Prices continued to gain traction. The Median Sales Price increased 4.8 percent to $195,000. Days on Market was down 17.2 percent to 78 days. Sellers were encouraged as Months Supply of Homes for Sale was down 17.6 percent to 2.6 months.
Unemployment rates have remained low throughout 2017, and wages have shown improvement, though not always to levels that match home price increases. Yet housing demand remained incredibly strong in 2017, even in the face of higher mortgage rates that are likely to increase further in 2018. Home building and selling professionals are both cautiously optimistic for the year ahead. Housing and economic indicators give reason for this optimism, with or without new federal tax legislation.
Housing Supply Overview
Inventory was again a driving metric in residential real estate in 2017, whether the fewer number of homes available put a damper on sales or created lower affordability due to competitive demand between eager buyers willing to raise the percent of original list price received at sale. For the 12-month period spanning January 2017 through December 2017, Closed Sales in Sioux Falls were up 6.4 percent overall.
The overall Median Sales Price was up 6.0 percent to $197,350.
Market-wide, inventory levels were down 11.3 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 10.8 percent. That amounts to 2.6 months supply for Single-Family homes and 3.6 months supply for Condos.
-10k Research & Marketing