Home sales jump as average price drops in November

The Sioux Falls market saw an increase in home sales and a drop in prices in November.

Closed sales increased 27 percent in the city compared with the prior November, according to a report by the Realtor Association of the Sioux Empire Inc.

The average price of a home sold during the month was $220,470, which is about $21,000 less than the same time last year.

New listings increased 2.6 percent year-over-year, which caused inventory in the city to drop to 877 homes, or a three-month supply. That’s 17 percent fewer homes for sale than one year ago.

“The facts of residential real estate have remained consistent in 2017. In year-over-year comparisons, the number of homes for sale has been fewer in most locales, and homes have been selling in fewer days for higher prices,” according to an analysis included with the report. “This hasn’t always been true, but it has been a common enough story line to make it an overarching trend for the year.”

The average house spent 78 days on the market before selling in November, which is two fewer days than one year ago, and sellers received on average 98.6 percent of original list price.

New tax legislation could have ramifications on housing, the report continued.

“The White House believes that the tax-reform bill will have a small impact on home prices, lowering them by less than 4 percent, and could conceivably boost homeownership. The National Association of Realtors has stated that eliminating the mortgage interest deduction could hurt housing, as the doubled standard deduction would reduce the desire to take out a mortgage and itemize the interest associated with it, thus reducing demand. This is a developing story.”

Home sales jump as average price drops in November

The Sioux Falls market saw an increase in home sales and a drop in prices in November.

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