RASE april 2023 Housing Market Statistics
Sioux Falls, SD – May 3, 2023:
Monthly Market Indicators
U.S. existing-home sales declined 2.4 percent month-over-month as of last measure, according to the National Association of REALTORS® (NAR), reversing February’s sales gain of 14.5%. Fluctuations in mortgage interest rates have caused buyers to pullback, with pending sales dropping 5.2% month-over-month. Meanwhile, the median existing-home sales price declined for the second month in a row, falling 0.9% nationally from the same time last year, the largest year-over-year decline since January 2012, according to NAR.
New Listings in the Sioux Falls region remained flat at 606. Pending Sales were up 5.6 percent to 412. Inventory levels fell 10.7 percent to 1,165 units.
Prices continued to gain traction. The Median Sales Price increased 10.3 percent to $319,900. Days on Market was up 9.7 percent to 79 days. Buyers felt empowered as Months Supply of Homes for Sale was up 6.9 percent to 3.1 months.
Housing inventory remains tight nationwide, with only 980,000 units available for sale heading into April, a 5.4% increase from one year earlier, although the number of homes for sale is down compared to the same period in 2019, prior to the pandemic. The lack of existing inventory continues to impact home sales, and with only 2.6 months’ supply of homes at last measure, competition for available properties remains strong, especially in certain price categories, with multiple offers occurring on about a third of properties, according to NAR.
Housing Supply Overview
A limited supply of existing homes for sale, along with an increase in new homes on the market, have helped boost demand for new single-family homes this year. Monthly new-home sales increased 9.6% as of last measure, marking the highest rate of new-home sales in a year, according to the U.S. Census Bureau. Single-family housing starts increased for the second consecutive month, rising 2.7% to a seasonally adjusted 861,000 units as of last measure, while single-family housing completions were up 2.4% month-over-month. For the 12-month period spanning May 2022 through April 2023, Pending Sales in the Sioux Falls region were down 15.9 percent overall. The price range with the largest gain in sales was the $900K to $1M range, where they increased 100.0 percent.
The overall Median Sales Price was up 12.7 percent to $299,900. The construction type with the largest price gain was the Previously Owned segment, where prices increased 11.2 percent to $290,000. The price range that tended to sell the quickest was the $200K to $250K range at 61 days; the price range that tended to sell the slowest was the $1M and Above range at 103 days.
Market-wide, inventory levels were down 10.7 percent. The construction type that gained the most inventory was the New Construction segment, where it increased 45.7 percent. That amounts to 2.9 months supply for Single-Family homes and 4.0 months supply for Condos.
RASE April 2023 Monthly Market Indicators Reports