Monthly RASE MLS Statistics
RASE MLS March 2017 Housing Market Statistical Reporting
Sioux Falls, SD – April 7, 2017:
Monthly Market Indicators
We can comfortably consider the first quarter to have been a good start for residential real estate in 2017. There was certainly plenty to worry over when the year began. Aside from new national leadership in Washington, DC, and the policy shifts that can occur during such transitions, there was also the matter of continuous low housing supply, steadily rising mortgage rates and ever-increasing home prices. Nevertheless, sales have held their own in year-over-year comparisons and should improve during the busiest months of the real estate sales cycle.
New Listings in the Sioux Falls region decreased 13.6 percent to 597. Pending Sales were up 78.6 percent to 534. Inventory levels fell 26.3 percent to 1,247 units.
Prices continued to gain traction. The Median Sales Price increased 10.1 percent to $185,000. Days on Market was down 8.0 percent to 92 days. Sellers were encouraged as Months Supply of Homes for Sale was down 33.3 percent to 3.0 months.
The U.S. economy has improved for several quarters in a row, which has helped wage growth and retail consumption increase in year-over-year comparisons. Couple that with an unemployment rate that has been holding steady or dropping both nationally and in many localities, and consumer confidence is on the rise. As the economy improves, home sales tend to go up. It isn’t much more complex than that right now. Rising mortgage rates could slow growth eventually, but rate increases should be thought of as little more than a byproduct of a stronger economy and stronger demand.
Housing Supply Overview
Low supply and steadily rising rates and prices have been the story so far after the first quarter of the year zipped by. The storylines are not expected to change as we work our way into the busiest months of the real estate sales cycle. For the 12-month period spanning April 2016 through March 2017, Pending Sales in the Sioux Falls region were up 10.2 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 116.7 percent.
The overall Median Sales Price was up 5.4 percent to $183,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 5.9 percent to $178,500. The price range that tended to sell the quickest was the $100K to $150K range at 73 days; the price range that tended to sell the slowest was the $800K to $900K range at 215 days.
Market-wide, inventory levels were down 26.3 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 21.4 percent. That amounts to 3.0 months supply for Single-Family homes and 3.5 months supply for Condos.
– 10k Research & Marketing