Monthly Market Indicators
Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.
New Listings in Sioux Falls increased 4.3 percent to 489. Closed Sales were down 2.1 percent to 333. Inventory levels fell 19.7 percent to 961 units.
The Median Sales Price increased 5.8 percent to $210,000. Days on Market was down 0.5 percent to 84 days. Sellers were encouraged as Months Supply of Homes for Sale was down 25.5 percent to 3.2 months.
Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.
Housing Supply Overview
Having a balanced number of homes for sale is an ongoing concern in most submarkets, as demand exceeds inventory. New construction optimism is tempered by building costs, but clever builders will figure out ways to turn profits while the economy is ripe for production. For the 12-month period spanning June 2017 through May 2018, Closed Sales in Sioux Falls were up 1.4 percent overall.
The overall Median Sales Price was up 7.2 percent to $207,925.
Market-wide, inventory levels were down 18.2 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 17.6 percent. That amounts to 3.4 months supply for Single-Family homes and 3.8 months supply for Condos.
– 10k Research & Marketing