Monthly Market Indicators
In July, the U.S. economic expansion that began in June 2009 became the longest in the nation’s history, marking 121 straight months of gross domestic product growth and surpassing the 120-month expansion from 1991 to 2001. The average rate of growth during this expansion has been a milder 2.3 percent per year compared to 3.6 percent during the 1990s. Although the economy should continue to perform well for the rest of 2019, most economists see a mild recession on the horizon.
New Listings in Sioux Falls decreased 10.8 percent to 444. Closed Sales were down 3.6 percent to 349. Inventory levels fell 13.8 percent to 1,016 units.
Prices continued to gain traction. The Median Sales Price increased 7.6 percent to $226,500. Days on Market was down 5.5 percent to 69 days. Sellers were encouraged as Months Supply of Homes for Sale was down 12.5 percent to 3.5 months.
During the record-setting 121-month economic expansion, the unemployment rate has dropped from 10.0 percent in 2009 to 3.7 percent, yet many consumers continue to struggle financially. Low mortgage interest rates have helped offset low housing affordability, but high home prices are outpacing median household income growth. In a move to stoke continued economic prosperity, the Federal Reserve reduced the benchmark interest rate by a quarter point to about 2.25 percent, marking the first reduction in more than a decade.
Housing Supply Overview
Although the situation is not exactly the same in every city neighborhood and bedroom community across the country, total sales and the number of available homes for sale are consistently much fewer in year-over-year comparisons within the lowest price tiers. For the 12-month period spanning August 2018 through July 2019, overall Closed Sales in Sioux Falls decreased 8.6 percent for the period.
The overall Median Sales Price was up 2.5 percent to $225,250.
Market-wide, inventory levels were down 6.7 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 4.4 percent. That amounts to 4.0 months supply for Single-Family homes and 4.4 months supply for Condos.
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