Monthly Market Indicators
Some economy observers are pointing to 2018 as the final period in a long string of sentences touting several happy years of buyer demand and sales excitement for the housing industry. Although residential real estate should continue along a mostly positive line for the rest of the year, rising prices and interest rates coupled with salary stagnation and a generational trend toward home purchase delay or even disinterest could create an environment of declining sales.
New Listings in Sioux Falls increased 7.9 percent to 437. Closed Sales were down 14.3 percent to 287. Inventory levels fell 20.9 percent to 961 units. Prices continued to gain traction. The Median Sales Price increased 1.5 percent to $202,000. Days on Market was up 4.5 percent to 76 days. Sellers were encouraged as Months Supply of Homes for Sale was down 26.6 percent to 3.2 months.
Tracking reputable news sources for housing market predictions makes good sense, as does observing trends based on meaningful statistics. By the numbers, we continue to see pockets of unprecedented price heights combined with low days on market and an economic backdrop conducive to consistent demand. We were reminded by Hurricane Florence of how quickly a situation can change. Rather than dwelling on predictions of a somber future, it is worth the effort to manage the fundamentals that will lead to an ongoing display of healthy balance.
Housing Supply Overview
According to a recent study by Fannie Mae, 24 percent of Americans feel that now is a good time to buy a house. That number was 54 percent five years ago. Feelings change rapidly when incomes do not match well with home prices and frustration sets in. For the 12-month period spanning October 2017 through September 2018, Closed Sales in Sioux Falls were up 1.8 percent overall.
The overall Median Sales Price was up 5.1 percent to $209,581.
Market-wide, inventory levels were down 14.9 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 12.4 percent. That amounts to 3.4 months supply for Single-Family homes and 4.6 months supply for Condos.