Housing market tightens further to end 2017

Jan. 8, 2018

New home listings jumped in Sioux Falls at the end of 2017, but inventory got even tighter.

While new listings were up 16 percent in the city, closed sales climbed 6 percent, according to the Realtor Association of the Sioux Empire. Pending sales in the area were up 16 percent.

That meant the city ended the year with a 2.6-month supply of homes on the market.

The average house spent 78 days on the market before selling, which is more than two weeks faster than the same time one year ago.

The average price of a home sold was $235,177, a 13 percent year-over-year increase.

“Buyers may not benefit from higher prices, but sellers do, and there should be more listing activity by more confident sellers in 2018,” according to an analysis included with the report. “At least that would be the most viable prediction for an economic landscape pointing toward improved conditions for sellers.”

For 2017, pending sales in the Sioux Falls region were up 5.5 percent compared with the prior year. The price range with the largest gain in sales was for $1 million and above, which increased 146 percent.

“Unemployment rates have remained low throughout 2017, and wages have shown improvement, though not always to levels that match home price increases,” the report said. “Yet housing demand remained incredibly strong in 2017, even in the face of higher mortgage rates that are likely to increase further in 2018. Homebuilding and selling professionals are both cautiously optimistic for the year ahead. Housing and economic indicators give reason for this optimism, with or without new federal tax legislation.”

Housing market tightens further to end 2017

New home listings jumped in Sioux Falls at the end of 2017, but inventory got even tighter.

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