Drop in Sioux Falls home sales mirrors national trend
Oct. 9, 2023
Home sales in Sioux Falls fell almost 20 percent in September, consistent with a drop nationally.
There were 243 home sales closed for the month, down from 301 a year ago, according to the Realtor Association of the Sioux Empire.
“National sales of existing homes recently fell to a seven-month low as surging borrowing costs, rising sales prices and limited inventory continue to keep many would-be buyers out of the market,” according to an analysis included with the report.
“Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7 percent since mid-August. With fewer buyers able to afford the costs of homeownership, existing home sales declined 0.7 percent month over month and were down 15.3 percent year over year,” according to the National Association of Realtors.
There were 394 new listings in Sioux Falls in September, essentially flat compared with last year’s 397.
The average price of a home sold in September was $384,728, up 5.9 percent from last year. The median price, $312,750, is up 1.6 percent.
On average, sellers received 99.4 percent of original list price, down 1.7 percent.
“Prices have continued to increase this fall despite softening home sales nationwide as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas,” the report said.
The average house took 71 days to sell last month in Sioux Falls, which is four days more than a year ago.
“Higher mortgage interest rates are taking their toll on buyer demand, and a number of buyers are choosing to postpone their next home purchase until rates move lower,” the report said. “With sales softening, builder confidence also declined, falling 5 points to 45 in September, according to the National Association of Home Builders.”
There was 870 homes on the market in Sioux Falls last month, which is 16 fewer than a year ago. But the market has a 3.7-month supply, up 16.9 percent compared with a year ago.
