Dec. 7, 2023

The Sioux Falls housing market is approaching higher inventory levels than seen in recent years.

The city is at a 3.7-month supply of homes on the market, according to the Realtor Association of the Sioux Empire Inc.

That’s up 23.6 percent from the same time last year.

It’s a combination of an increase in new listings, as well as homes not selling as fast as they did a year ago. There were 313 new home listings in November in the city, up from 276 the same time last year, and 179 closed sales, an almost 11 percent drop.

“Low inventory, elevated sales prices and decades-high interest rates continue to weigh on the housing market, causing sales of existing homes to fall to their slowest pace since August 2010,” according to an analysis included with the report.

“According to the National Association of Realtors, U.S. existing-home sales declined 4.1 percent month over month and 14.6 percent year over year as of last measure as prospective buyers faced with rising homeownership costs wait for mortgage rates and home prices to drop.”

The inventory levels still are far from high, though, which might be supporting continued price increases.

The average price of a home sold in the city last month was $371,270, up 10.3 percent from last year. The median price, $305,000, is up 3.7 percent.

The average house spent 72 days on the market before selling last month, which is a week longer than last year. And sellers received 98.5 percent of original list price, which is a slight drop from last year at 99.4 percent.

“The shortage of available properties for sale has kept pressure on home prices, which have continued to climb despite the slowdown in sales,” the report said.

The price range with the largest gain in sales in the Sioux Falls area was $800,000 to $900,000, with an increase of 38 percent.