Home sellers, on average, received full asking price in May

From staff reports

In a continued tight housing market, sellers received 99.9 percent of their original list price in May.

The Sioux Falls housing market is experiencing near-record-low inventory, with a 3.3-month supply of homes on the market at the end of May. That’s down almost 30 percent from the same time last year, according to the Realtor Association of the Sioux Empire Inc.

Closed sales increased 3.5 percent last month, with homes priced between $100,000 and $150,000 selling the fastest at an average of 73 days. The price range moving the slowest was $800,000 to $900,000 at six months.

The average price of a house sold in May was $233,481, which is 2 percent more than last year. Home prices across the U.S. are reaching all-time highs, prompting worry over another “boom-and-bust scenario like we experienced roughly 10 years ago,” according to an analysis included with the RASE report.

“Yet, as we glance across the state of residential real estate, what is clear compared to the last extended run of price increases is that lending standards are now much stronger than they were before. Incomes must be verified, a reasonable amount of money must be paid toward the home prior to purchase and a more stringent loan-approval process is in place to prevent a repeat performance of the Great Recession.”

With a 1 percent increase in new listings last month, Sioux Falls ended the month with 971 homes on the market.

“Although we continue to battle an inventory shortage in much of the country, optimism remains high for a successful summer for buying and selling homes,” the report said. “Finding adequate supply is still an issue in most markets, as demand continues to overwhelm the current stock of homes for sale. There are signs of improvement in new construction. Some builders sense that the extended trend of low inventory equates to opportunity and profit.”

Home sellers, on average, received full asking price in May

In a continued tight housing market, sellers received 99.9 percent of their original list price in May.

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