July 10, 2023

Sioux Falls home prices are holding at historically high levels, and overall sales dropped in June.

The average price of a home sold in the city was $377,566, up 2.9 percent from a year ago and just below May’s record average sales price of $378,000, according to the Realtor Association of the Sioux Empire. The median price was up 2 percent at $326,800.

In June, there were 312 closed sales, down 10.1 percent year over year, and 421 new listings, down 4.8 percent.

That left the market with a 3.2-month supply, which is up 16.6 percent compared with a year ago. Marketwide, inventory is down 2.3 percent, but in new construction, it’s up 25.7 percent.

“Limited existing-home inventory continues to be a boon for homebuilders, who have ramped up production to meet the rising demand in the new home market,” according to an analysis included with the report. “Renewed interest in new homes this year has helped builder confidence increase to its highest level since July 2022, according to the NAHB/Wells Fargo Housing Market Index.”

The average house in Sioux Falls spent 74 days on the market before selling in June, which is the same as last year. On average, sellers received 100.6 percent of their original list price, which is down from 103.5 percent a year ago.

“Temperatures are heating up, yet the U.S. housing market remains cooler than usual for this time of year due to a combination of low inventory and higher borrowing costs, which have restricted market activity going into the summer homebuying season,” the report said.