Home sales take sharp drop in June as prices rise

July 8, 2019

Eighty fewer homes sold in the city of Sioux Falls last month compared with June 2018, while the average price of a home sold hit an all-time monthly high.

Closed sales in June fell 18.9 percent year-over-year, according to the Realtor Association of the Sioux Empire.

New listings increased 8.1 percent year-over-year, leaving the city with a 3.6-month supply of homes on the market.

“After several years of declining inventory and supply, more and more housing markets are beginning to find their way toward a state of balance in terms of available listings,” according to an analysis included with the report. “There is still work to be done, but the situation is not as dire as it once was.”

The average price of a home sold in Sioux Falls reached $269,674, a record monthly high and a year-over-year increase of 5.5 percent. The median home price was $229,000, a 4.6 percent increase.

The average home spent 77 days on the market before selling, which is four days more than the same time last year.

“Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments,” the report said.

“In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July.”

However, there are signs of a slowing economy, the report said.

“The Federal Reserve considers 2 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.”

Home sales take sharp drop in June as prices rise

Home sales dropped 19 percent in Sioux Falls last month compared with June 2018, while the average price of a home sold hit an all-time monthly high.

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