Monthly RASE MLS Statistics

RASE December 2022 Housing Market Statistics

Sioux Falls, SD – Jan 5 2022:

Monthly Market Indicators

2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.

New Listings in the Sioux Falls region increased 14.5 percent to 276. Pending Sales were down 29.0 percent to 350. Inventory levels fell 0.2 percent to 920 units.

Prices continued to gain traction. The Median Sales Price increased 11.6 percent to $289,000. Days on Market was down 1.4 percent to 72 days. Buyers felt empowered as Months Supply of Homes for Sale was up 15.0 percent to 2.3 months.

Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.

Housing Supply Overview

In an effort to attract buyers amid slowing traffic and declining home sales, U.S. homebuilders have been increasingly reducing prices and offering sales incentives this year. According to the National Association of Home Builders, 36% of single-family homebuilders reported cutting prices as of last measure, with an average price reduction of 6%. Meanwhile, 59% of builders reported offering sales incentives, including price discounts, paying closing costs or fees, and offering free upgrades or price discounts, among others. For the 12-month period spanning January 2022 through December 2022, Pending Sales in the Sioux Falls region were down 13.8 percent overall. The price range with the largest gain in sales was the $800K to $900K range, where they increased 78.6 percent.

The overall Median Sales Price was up 14.7 percent to $296,000. The construction type with the largest price gain was the New Construction segment, where prices increased 20.8 percent to $350,300. The price range that tended to sell the quickest was the $200K to $250K range at 63 days; the price range that tended to sell the slowest was the $1M and Above range at 98 days.

Market-wide, inventory levels were down 0.2 percent. The construction type that gained the most inventory was the New Construction segment, where it increased 2.9 percent. That amounts to 2.2 months supply for Single-Family homes and 2.8 months supply for Condos.

– ShowingTime

RASE December 2022 Monthly Market Indicators Reports

RASE December 2022 Housing Supply Overview Reports