June 10, 2024

More activity seems to be returning to the Sioux Falls housing market.

In May, new listings in the city were up 7.3 percent compared with a year ago, according to the Realtor Association of the Sioux Empire. Closed sales were up 2.5 percent.

Inventory fell by 18.2 percent, leaving the city with a 3.6-month supply of homes.

That’s somewhat more encouraging than data elsewhere in the country.

“Higher borrowing costs and accelerating home prices continue to weigh on demand, pushing some prospective buyers to the sidelines and causing market activity to slump ahead of summer,” according to an analysis included with the report.

“Demand for new homes softened due to higher sales prices, elevated mortgage rates and an increase in existing-home supply, leading builder confidence to decline for the first time since November, according to the NAHB/Wells Fargo Housing Market Index.”

In Sioux Falls, the average price of a home sold in May was $378,117, up 1 percent from last year. The median price was $340,000, up 5.3 percent.

The average home spent 78 days on the market before selling, which is six more days than last year. Sellers received 99.1 percent of original list price, down 1 percent.

The price range that tended to sell the quickest was $100,00 to $150,000 at 64 days; the price range that tended to sell the slowest was $700,000 to $800,000 at 108 days. The price range with the largest gain in sales was $800,000 to $900,000, with an increase of 75 percent.