Feb. 7, 2024

To start the year, there are more homes for sale in Sioux Falls — and slightly fewer that sold.

New listings in the city increased 13.1 percent versus January 2023, while closed sales dropped 4.7 percent — a difference of six houses, according to the Realtor Association of the Sioux Empire Inc.

Nationwide, sales also fell, but pending sales made their largest gain since 2020, according to the National Association of Realtors.

“Mortgage rates have dropped significantly from their peak last fall, and homebuyers are beginning to come out of the woodwork, with NAR forecasting a 13 percent increase in existing-home sales this year compared to 2023,” according to an analysis included with the report.

The broader Sioux Falls metro area showed pending sales up 20.8 percent.

The average price for  house sold in Sioux Falls in January was $385,000, up 13.1 percent compared with a year ago, while the median price at $315,500 was up 10.3 percent. The average house spent 79 days on the market before selling, which is three more days than a year ago.

“Despite tepid sales activity, the persistent shortage of housing supply has helped prop up home values nationwide, with the median existing-home price rising 4.4  percent year over year to $382,600, according to NAR,” the report said. “Nationally, listing activity has started to pick up, and with mortgage rates stabilizing and housing completions on the rise, inventory is expected to improve in the coming months.”

The Sioux Falls inventory sits at a 3.2-month supply, up from 2.9 months a year ago.