Sioux Falls home sales flat, inventory down to start the year

Feb. 8, 2018

January felt a little like the same story in a different year for the Sioux Falls housing market, with no change year-over-year in new listings and a continued decline in inventory.

There were 143 closed sales in the city for the month, which is one more than January 2017. The average price was $230,832, which is a 5 percent increase, according to the Realtor Association of the Sioux Empire Inc.

Sellers received 99.2 percent of their original list price.

“Last year, U.S. consumers seemed to be operating with a renewed but cautious optimism. The stock market was strong, wages were edging upwards and home-buying activity was extremely competitive,” according to an analysis included with the report.

“Not much has changed in 2018 in terms of those measures, yet there is a sort of seasoned prudence mixed into the high emotions that go with a major expense like a home purchase. We are now several years deep into a period of rising prices and low inventory. Those in the market to buy a home have caught on. As sellers attempt take advantage of rising prices, expect buyers to be more selective.”

The city of Sioux Falls ended January with a 2.6-month supply of homes, which is about 100 fewer homes on the market than the same time in 2017.

“Whatever external forces are placed upon residential real estate markets across the country – whether they are related to tax legislation, mortgage rates, employment situation changes, new family formations, the availability of new construction and the like – the appetite for home buying remains strong enough to drive prices upward in virtually all markets across the country,” the report said.

“New sales are not necessarily following that trend, but monthly increases are expected until at least late summer. As we enter 2018, it will be most interesting to watch demand dynamics, as home sales have been lower in several markets over the last few months. Whether this is related to there being not enough homes for sale, prices getting too high or less buyer interest remains to be seen.”

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Sioux Falls home sales flat, inventory down to start the year

January felt a little like the same story in a different year for the Sioux Falls housing market, with no change year-over-year in new listings and a continued decline in inventory.

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