Sept. 6, 2021

The average price of a house sold in Sioux Falls was up nearly 20 percent year over year, but overall sales were down in August.

There were 336 closed sales in the city for the month, down about 10 percent from a year ago, according to the Realtor Association of the Sioux Empire Inc.

New listings dropped 8 percent.

That gave the market a two-month supply of inventory, a 46 percent decline from the same time in 2020.

“In new construction, homebuilders continue to struggle to meet buyer demand as housing starts nationwide dropped 7 percent last month, according to the Commerce Department,” an analysis included with the report stated.

“Single-family home construction declined 4.5 percent, and multifamily home construction, which includes condos and apartment buildings, was also down, falling by 13 percent. Labor shortages, rising material costs and supply chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.”

In Sioux Falls, the average house spent 65 days on the market before selling, which is nine fewer days than last year.

The average price of a home sold last month was $317,393, a 19 percent increase from the same time in 2020. The median price also took a 17 percent jump to $278,950.

The average seller received 102 percent of list price, indicating multiple-offer scenarios are continuing.

“The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future,” the report added.

“Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4 percent in 2021 so far, according to Apartment List.”