Sioux Falls homebuyers running out of options

From staff reports

In Sioux Falls, there are 269 fewer homes for sale than the same time a year ago – and those that are on the market are selling faster and for more money.

Closed sales increased 11.4 percent in March, according to the Realtor Association of the Sioux Empire, while new listings dropped 15 percent.

The average price of a house sold in Sioux Falls was $219,960, which is 10.4 percent more than the same time last year. The average house also spent 91 days, or three fewer, on the market before selling.

“We can comfortably consider the first quarter to have been a good start for residential real estate in 2017,” an analysis included with the monthly report said, adding the market seems to have overcome concern about policy shift related to a new presidential administration as well as continued low supply and rising mortgage rates.

“Nevertheless, sales have held their own in year-over-year comparisons and should improve during the busiest months of the real estate sales cycle,” the report said.

Inventory dropped to a 2.8-month supply in Sioux Falls, continuing several months of near-record lows.

“As the economy improves, home sales tend to go up. It isn’t much more complex than that right now,” the the report said. “Rising mortgage rates could slow growth eventually, but rate increases should be thought of as little more than a byproduct of a stronger economy and stronger demand.”

Sioux Falls homebuyers running out of options

In Sioux Falls, there are 269 fewer homes for sale than the same time a year ago – and those that are on the market are selling faster and for more money.

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