Sioux Falls home inventory plummets again
Dec. 6, 2021
After months of fairly stable but low inventory, the number of available homes took a sharp drop in Sioux Falls in November.
The city reported a 1.6-month supply of homes on the market, down 40 percent from a year ago, and following several months of inventory in the two-month range. That represents 311 fewer homes for sale this year than the same time last year.
“As fall winds down and winter approaches, the real estate market continues to follow typical seasonality trends. After a year of record-setting activity, homes are still selling quickly and at a steady pace, and strong demand and low inventory help ensure the market will remain competitive for some time to come,” according to a report from the Realtor Association of the Sioux Empire Inc.
“Although sales prices continue to rise and interest rates are trending higher as well, home sales activity remains strong as we enter the holiday season.”
November saw 289 closed sales in the city, up 3.2 percent from the same time last year. There were 246 new listings, which is five more than last year.
The average price of a home sold in November was $288,068, a 9 percent increase, while the median price was $256,500, also a 9 percent increase.
The average house spent 70 days on the market before selling, which is six fewer days than last year, and sellers received 100.8 percent of original list price.
“The economy is improving, unemployment is falling, and the U.S. real estate market remains strong as we head into the holiday season, a period when activity typically slows as people take time to travel, celebrate and spend time with loved ones,” the report said. “Although the market is not as frenetic as was seen earlier this year, buyer demand is high, bolstered by attractive mortgage rates and a low supply of inventory.”
For the 12-month period spanning December 2020 through November 2021, pending sales in the Sioux Falls region were up 7.6 percent overall. The price range with the largest gain in sales was the $700,000 to $800,000, where they increased 233 percent.
