Monthly Market Indicators
For much of the country, the first quarter of 2019 provided several disruptive weather patterns that contributed to less foot traffic toward potential home sales. Coupled with low affordability, higher prices and an inventory situation in its infancy of recovering from record lows – not to mention several more days of wintry weather in April – slower sales persisted across most residential real estate markets. However, buyers are beginning to return in force this spring. For well-priced homes in desirable locations, competition is fierce.
New Listings in Sioux Falls increased 4.2 percent to 451. Closed Sales were down 25.2 percent to 225. Inventory levels fell 17.9 percent to 910 units.
Prices were fairly stable. The Median Sales Price increased 0.7 percent to $213,000. Days on Market was down 6.5 percent to 84 days. Sellers were encouraged as Months Supply of Homes for Sale was down 19.1 percent to 3.1 months.
Although hiring and wage gains have been below expectations, the national unemployment rate held firm at 3.8 percent. A historically low unemployment rate can provide reassurance to wary consumers. But in order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are most active. Neither situation is likely to occur in 2019, and yet inventory is straining to keep pace in the most competitive price ranges.
Housing Supply Overview
Months of supply are beginning to rise as unaffordable-to-most listings begin to enter the market with more regularity. Sales have actually been steady in higher price ranges, while first-time buyer markets are extremely competitive. For the 12-month period spanning May 2018 through April 2019, Closed Sales in Sioux Falls were down 20.2 percent overall.
The overall Median Sales Price was up 1.0 percent to $209,000.
Market-wide, inventory levels were down 13.1 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 7.7 percent. That amounts to 3.3 months supply for Single-Family homes and 4.1 months supply for Condos.
– Showing Time