Home sales plunge in March with affordability concerns nationwide

April 8, 2019

Home sales in Sioux Falls fell 33 percent in March amid adverse weather and continued low inventory.

There were 186 closed sales in the city for the month, according to the Realtor Association of the Sioux Empire Inc., which is almost 100 fewer homes than the same time last year.

New listings dropped 15.2 percent.

The market has a 2.9-month supply of homes, down 21 percent year-over-year.

“Housing supply has continued to struggle to replenish itself in most markets across the U.S., which is contributing to an overall decline in sales. Yet low inventory is not the only slowing factor in a buying environment with historically high prices,” according to an analysis included with the report.

“In addition to the quandary of ongoing housing price increases and affordability concerns in many U.S. markets, the first quarter of 2019 saw a fair share of adverse weather as well. Sales totals were mixed across the nation and sometimes dependent on what was a persistent wintry mix, especially in the Great Plains, Midwest and Northeast.”

The average price of a home sold in March in Sioux Falls was $241,116, a 3.6 percent increase, while the median price of $201,500 was a 4 percent year-over-year decrease.

“The Federal Reserve recently announced that no further interest rate hikes are planned for 2019. Given the fact that the federal funds rate has increased nine times over the past three years, this was welcome news for U.S. consumers, which carry an approximate average of $6,000 in revolving credit card debt per household,” the report said.

“Fed actions also tend to affect mortgage rates, so the pause in rate hikes was also welcome news to the residential real estate industry.”

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Home sales plunge in March with affordability concerns nationwide

Home sales in Sioux Falls fell 33 percent in March amid adverse weather and continued low inventory.

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