July 8, 2021

Home prices in Sioux Falls set another record in June.

The average price of a home sold in the city in June was $322,738 — a 22 percent year-over-year increase — according to the Realtor Association of the Sioux Empire.

The median sales price was $271,000, an 18 percent year-over-year increase.

“The U.S. housing market continues along at a frenzied pace, with low interest rates and limited inventory fueling record high sales prices,” according to an analysis included with the report.

“May saw the median existing-home sales price exceed $350,000, a 24 percent increase and the largest year-over-year increase since 1999.”

The Sioux Falls market saw a 10 percent drop in closed sales for the month and an 11 percent drop in new listings.

That left the market with a two-month supply of homes, down 52 percent from the same time last year.

“The increase in sales prices comes with a slight decline in existing-home sales nationwide, as homebuyers struggle with declining affordability amid a lack of inventory, forcing some buyers to simply wait it out in hopes of more inventory and less competition,” the report said.

“Meanwhile, homebuilders are trying to meet the increased market demand, with housing starts up 3.6 percent in May from April, according to the Commerce Department. As we ease into new routines and look forward to a post-pandemic future, one thing remains certain: America desperately needs more homes.”

The average house in Sioux Falls spent 74 days on the market before selling, which is four days fewer than the same time last year.

Multiple-offer situations continue to drive sales activity, with the average house sold in June receiving 102.6 percent of original list price.

“Buyers continue to flood the market in search of their next home, with rock-bottom inventory and record-high sales prices reported throughout much of the country,” the report said.