Home sales slow, reflecting national trend

From staff reports

Home sales are slowing across the country, including a bit in the Sioux Falls area.

Closed sales in the metro area were down 7.7 percent in June from the same time one year ago, according to the Realtor Association of the Sioux Empire.

New listings were up 10 percent.

Overall inventory, however, is still down 29 percent, with a 3.3-month supply of homes on the market.

“There has been a general slowdown in sales across the country, and this cannot be blamed on negative economic news. Unemployment remains low, and wage growth, though nothing to overly celebrate, has held steady or increased for several years in a row,” according to an analysis included with the report.

“There is strong demand for homebuying, emphasized by higher prices and multiple offers on homes for sale in many submarkets. As has been the case for month after month – and now year after year – low inventory is the primary culprit for any sales malaise rather than lack of offers.”

The average price of a house sold in the Sioux Falls area was $237,943 – an increase of 8 percent.

Home sales at the top of the market continue to be strong. The price range with the largest gains was homes priced $1 million or more, with sales up 160 percent year-over-year.

Homes priced between $100,000 and $150,000 sold the fastest at 73 days.

“A general slowdown in sales across the country has some worried that a more serious housing shortage is forthcoming, but builder confidence would suggest otherwise,” the report said. “Be on the lookout for an improvement in housing starts in the months ahead to quell any fears.”

Home sales slow, reflecting national trend

Home sales are slowing across the country, including a bit in the Sioux Falls area.

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