Sioux Falls home sales drop; prices rise

Home sales took a fairly significant drop in October in Sioux Falls, falling 16 percent compared with the same time last year.

Pending sales at the end of the month were up 11 percent in the metro area, according to the Realtor Association of the Sioux Empire, so November might show a rebound. Inventory, however, also continues to drop.

The city ended October with a 3.4-month supply of homes on the market, down 17 percent year-over-year.

“Supply will dip for the remainder of the year, but there are some hopeful signs that we may see a bump in the new year,” according to an analysis included with the report. “To say that more inventory will immediately impact housing markets is premature, especially if affordability continues to drop and prices continue to rise.”

Sellers received 99 percent of their original list price in October. The average price of a house sold in Sioux Falls was $224,851, an increase of 8 percent from the same time last year.

The average house sold in 79 days, which is four days faster than a year ago.

“Although inventory levels are low in many markets, there has largely been enough listing and building activity, or at least conversation about future activity, to keep prices from skyrocketing toward another bubble,” the report said. “Low affordability has started to become a recent topic of conversation and is definitely worth watching. But with a healthy economy, level of demand and national unemployment rate, sellers are going to be hard-pressed to lower prices.”

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Sioux Falls home sales drop; prices rise

Home sales took a fairly significant drop in October in Sioux Falls, falling 16 percent compared with the same time last year.

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