Home sales drop in September; economists eye market warning signs

Oct. 8, 2018

Home sales fell 14 percent in the city of Sioux Falls in September compared with the same time last year, according to the Realtor Association of the Sioux Empire Inc.

New listings increased 8 percent.

For the year, the residential real estate market looks a lot like 2017. Through the first nine months of the year, new listings increased less than 1 percent year-over-year and closed sales increased 2 percent.

“Some economy observers are pointing to 2018 as the final period in a long string of sentences touting several happy years of buyer demand and sales excitement for the housing industry,” according to an analysis included with the report.

“Although residential real estate should continue along a mostly positive line for the rest of the year, rising prices and interest rates, coupled with salary stagnation and a generational trend toward home purchase delay or even disinterest, could create an environment of declining sales.”

The inventory of homes for sale might not be helping activity. There were 961 homes on the market in September, which is 254 fewer than the same time one year ago.

The average price of a home sold in Sioux Falls was $232,967, or 4 percent more than the same time last year.

“By the numbers, we continue to see pockets of unprecedented price heights combined with low days on market and an economic backdrop conducive to consistent demand,” the report said. “According to a recent study by Fannie Mae, 24 percent of Americans feel that now is a good time to buy a house. That number was 54 percent five years ago. Feelings change rapidly when incomes do not match well with home prices, and frustration sets in.”

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Home sales drop in September; economists eye market warning signs

Home sales fell in Sioux Falls last month, and analysts warn there could be some softening of the market ahead.

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