Monthly RASE MLS Statistics
RASE June 2019 Housing Market Statistical Reporting
Sioux Falls, SD – July 3, 2019:
Monthly Market Indicators
As was widely expected, the Federal Reserve did not change the target range for the federal funds rate – currently set at 2.25 to 2.5 percent – during their June meeting. Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments.
New Listings in the Sioux Falls region increased 6.7 percent to 769. Pending Sales were up 12.8 percent to 678. Inventory levels fell 7.1 percent to 1,615 units.
Prices continued to gain traction. The Median Sales Price increased 4.7 percent to $225,000. Days on Market was up 5.3 percent to 80 days. Sellers were encouraged as Months Supply of Homes for Sale was down 7.0 percent to 4.0 months.
In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July. However, there are signs of a slowing economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.
Housing Supply Overview
After several years of declining inventory and supply, more and more housing markets are beginning to find their way toward a state of balance in terms of available listings. There is still work to be done, but the situation is not as dire as it once was. For the 12-month period spanning July 2018 through June 2019, Pending Sales in the Sioux Falls region were up 0.8 percent overall. The price range with the largest gain in sales was the $800K to $900K range, where they increased 77.8 percent.
The overall Median Sales Price was up 4.1 percent to $205,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 5.0 percent to $199,900. The price range that tended to sell the quickest was the $100K to $150K range at 70 days; the price range that tended to sell the slowest was the $800K to $900K range at 152 days.
Market-wide, inventory levels were down 7.1 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 5.8 percent. That amounts to 3.8 months supply for Single-Family homes and 4.7 months supply for Condo-Townhouse.