July 6, 2018

The average price of a home sold in Sioux Falls was almost $241,000 in June, a 3.5 percent increase compared with the same time last year.

That comes as inventory keeps dropping, down to a 3.2-month supply, with 961 homes for sale. That’s 236 fewer homes than the same time last year, according to the Realtor Association of the Sioux Empire Inc.

“Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing,” according to an analysis included with the report.

“The housing-supply outlook in several markets is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale.”

There were 489 new listings that came on the market in June, which is 20 more than the same time last year.

Closed sales dropped 2.1 percent year-over-year.

The average house spent 84 days on the market before selling, almost the same as last year, and sold for 99.5 percent of the original list price.

“Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price,” the report said.

“While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent(age points), marking the second rate hike this year and seventh since late 2015. Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.”