Jan. 7, 2020

There were fewer homes sold in Sioux Falls in 2019 compared with 2018 – and those that did sell tended to cost more.

That’s according to data from the Realtor Association of the Sioux Empire Inc., which found closed sales in the city dropped 2.8 percent from 3,421 homes sold to 3,324 homes.

The average price of a home sold in 2019 was $254,101, a 6.1 percent increase from 2018. The median price was $219,000, a 4.5 percent increase.

“In 2019, home prices were up again in most markets. Buyer demand continues to be strong, but with tepid seller activity still in many locations, total sales are lower than they would normally be in a more balanced market,” the RASE report said.

“While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices.”

The average house spent 79 days on the market before selling in 2019, which is three fewer days than in 2018. Sellers received 99.1 percent of their original list price.

The market closed the year with a 20.1 percent increase in closed sales for December, which caused inventory to drop to a 2.7-month supply. New listings increased 5.7 percent.

“With low mortgage rates, low unemployment and continued wage growth, homebuyer activity is expected to remain healthy into the new year,” the report said.

“New construction has been on the rise in 2019 and is expected to continue into 2020, but many experts note that the country is still not building enough new units to quench demand. It remains to be seen whether existing homeowners will be enticed to sell by higher home prices, which could finally bring the overall housing market into greater balance.”