Nov. 7, 2019

More people are deciding to sell their home in Sioux Falls, as new listings increased 13 percent in October compared with the same time last year.

That represents 452 new houses put up for sale, or 52 more than the same time in 2018, according to the Realtor Association of the Sioux Empire Inc.

Pending sales in the region increased 18 percent. Closed sales fell 6 percent.

The average price of a home sold in Sioux Falls last month was $253,515, an increase of 5 percent. The median price was $225,000, up 8 percent.

Mortgage rates increased slightly from three-year lows seen in September.

“While the Federal Reserve reduced the federal funds target rate by .25 percent, this decline was widely expected and largely factored into mortgage rates already, which are still approximately 1 percent lower than this time last year,” the report said. “Fannie Mae is predicting that continued low rates, and possibly lower rates, are expected in 2020.”

The city ended October with a 3.6-month supply of homes on the market, representing 1,014 homes. That’s 117 fewer homes than the same time last year.

“As we begin the slower time of year for home sales, historically low mortgage rates will continue to support buyer demand and may create additional lift to home prices as excellent affordability gives buyers the ability to offer more to secure their dream home,” the report said.

“Throughout much of the country, the continued low level of housing inventory also continues to constrain sales activity from where it would likely be in a balanced market.”