Home prices drop in Sioux Falls along with inventory

June 6, 2019

Here’s something that hasn’t happened for a while: The price of homes sold in Sioux Falls fell year-over-year in May.

The average price of a home sold was $232,366, a 4 percent decrease from May 2018, according to the Realtor Association of the Sioux Empire Inc.

Closed sales increased by 30 houses, or 9 percent.

New listings were flat year-over-year, creating a 3.4-month supply of homes on the market, which is down 18 percent from the same time a year ago.

“At this point in the year, we are getting a good sense for how the housing market is likely to perform for the foreseeable future. And although it is not a particularly exciting forecast, it is a desirable one,” according to an analysis included with the report.

“Markets across the country are regulating toward a middle ground between buyers and sellers. While it remains true that sales prices are running higher and that inventory options are relatively low, buyers are beginning to find wiggle room at some price points and geographies.”

In general, there are still fewer homes for sale at the low end of the price spectrum, which has translated into fewer sales, the report said.

Inventory and sales are rising in the upper price tiers. For the 12-month period spanning June 2018 through May 2019, the price range in the Sioux Falls region with the largest gain in sales was the $900,000 to $1 million range, which increased 57 percent.

“An extended trend of low unemployment, higher wages and favorable mortgage rates has been a terrific driver of housing stability in recent years. What is different about this year so far is that prices are not rising as quickly,” the report said.

“As a whole, the selling season is looking fairly stable across the nation.”

Home prices drop in Sioux Falls along with inventory

Here’s something that hasn’t happened for a while: The price of homes sold in Sioux Falls fell year-over-year in May.

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