Nov. 12, 2018

Home sales in the city of Sioux Falls increased year-over-year in October, with closed sales up 5.4 percent. That represents 294 homes sold, or 15 more than the same time last year.

The average price of a home sold in the city was $241,698, or 7.1 percent more than last year, according to the Realtor Association of the Sioux Empire.

“If the last few months are an indication of the temperature of housing markets across the country, a period of relative calm can be expected during the last three months of the year,” according to an analysis included with the report.

“A trend of market balance is emerging as we approach the end of 2018. Prices are still rising in most areas, and the number of homes for sale is still low, but there is a general shrinking of year-over-year percentage-change gaps in sales, inventory and prices.”

In Sioux Falls, inventory is down year-over-year, with 968 homes on the market at the end of October, or more than 200 fewer than the same time one year ago. That leaves the city with a 3.2-month supply.

Stock markets experienced an October setback, but that does not necessarily translate to a decline in the real estate market, the report said.

“The national unemployment rate has been below 4 percent for three straight months and during five of the last six months. This is exceptional news for industries related to real estate. Meanwhile, home-builder confidence remains positive, homeownership rates have increased in the key under-35 buyer group, and prices, though still rising, have widely reduced the march toward record highs.”