Aug. 8, 2024

Double-digit percentage increases in home prices seem to be a thing of the past, at least for now.

The monthly real estate report for the city of Sioux Falls from the Realtor Association of the Sioux Empire Inc. found the average price of a home sold in July dropped 2.5 percent from a year ago to $379,506.

The median price rose 1.8 percent to $339,950.

Closed sales dropped 13.3 percent on a year-over-year basis in July, representing 248 homes sold in the city.

“Higher mortgage rates, along with rising sales prices, have kept many prospective buyers on the sidelines, despite more home choices and less competition for those homes,” according to an analysis included with the report.

Since July, mortgage rates have dropped to their lowest level in more than a year.

New home listings were up 6.1 percent in Sioux Falls for the month.

The average house spent 72 days on the market, which is two fewer days than last year, and more competitive buying might be returning. Sellers received on average 100.1 percent of their original list price, up slightly from a year ago.

The city ended July with a 3.8-month supply of homes on the market, down 14 percent from the same time last year.