Monthly RASE MLS Statistics
RASE MLS June 2017 Housing Market Statistical Reporting
Sioux Falls, SD – July 11, 2017:
Monthly Market Indicators
There has been a general slowdown in sales across the country, and this cannot be blamed on negative economic news. Unemployment remains low and wage growth, though nothing to overly celebrate, has held steady or increased for several years in a row. There is strong demand for home buying, emphasized by higher prices and multiple offers on homes for sale in many submarkets. As has been the case for month after month – and now year after year – low inventory is the primary culprit for any sales malaise rather than lack of offers.
New Listings in the Sioux Falls region increased 11.1 percent to 733. Pending Sales were up 25.1 percent to 728. Inventory levels fell 23.9 percent to 1,447 units.
Prices continued to gain traction. The Median Sales Price increased 7.5 percent to $202,850. Days on Market was down 5.7 percent to 82 days. Sellers were encouraged as Months Supply of Homes for Sale was down 31.4 percent to 3.5 months.
With job creation increasing and mortgage rates remaining low, the pull toward homeownership is expected to continue. Yet housing starts have been drifting lower, and some are beginning to worry that a more serious housing shortage could be in the cards if new construction and building permit applications continue to come in lower in year-over-year comparisons while demand remains high. Homebuilder confidence suggests otherwise, so predictions of a gloomy future should be curbed for the time being.
Housing Supply Overview
A general slowdown in sales across the country has some worried that a more serious housing shortage is forthcoming, but builder confidence would suggest otherwise. Be on the lookout for an improvement in housing starts in the months ahead to quell any fears. For the 12-month period spanning July 2016 through June 2017, Pending Sales in the Sioux Falls region were up 11.9 percent overall. The price range with the largest gain in sales was the $1M and Above range, where they increased 160.0 percent.
The overall Median Sales Price was up 5.9 percent to $186,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 7.1 percent to $182,000. 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 173 days.
Market-wide, inventory levels were down 23.9 percent. The construction type that lost the least inventory was the New Construction segment, where it decreased 17.2 percent. That amounts to 3.4 months supply for Single-Family homes and 3.5 months supply for Condos.
– 10k Research & Marketing