If the last few months are an indication of the temperature of housing markets across the country, a period of relative calm can be expected during the last three months of the year. A trend of market balance is emerging as we approach the end of 2018. Prices are still rising in most areas, and the number of homes for sale is still low, but there is a general shrinking of year-over-year percentage change gaps in sales, inventory and prices.
New Listings in Sioux Falls increased 2.4 percent to 388. Closed Sales were up 5.4 percent to 294. Inventory levels fell 17.9 percent to 968 units.
Prices continued to gain traction. The Median Sales Price increased 4.6 percent to $205,500. Days on Market was up 2.7 percent to 82 days. Sellers were discouraged as Months Supply of Homes for Sale was down 24.4 percent to 3.2 months.
Stock markets experienced an October setback, but that does not necessarily translate to a decline in the real estate market. The national unemployment rate has been below 4.0 percent for three straight months and during five of the last six months. This is exceptional news for industries related to real estate. Meanwhile, homebuilder confidence remains positive, homeownership rates have increased in the key under-35 buyer group and prices, though still rising, have widely reduced the march toward record highs.
Housing Supply Overview
Although every community is different, a general analysis of all housing markets across the country reveals that housing inventory is slowly moving toward balance with year-ago levels. This is the first indication in years that we may be approaching an inventory bottom. For the 12-month period spanning November 2017 through October 2018, Closed Sales in Sioux Falls were up 5.4 percent overall.
The overall Median Sales Price was up 5.3 percent to $209,500.
Market-wide, inventory levels were down 12.2 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 11.7 percent. That amounts to 3.4 months supply for Single-Family homes and 4.8 months supply for Condos.