Monthly RASE MLS Statistics
RASE July 2019 Housing Market Statistical Reporting
Sioux Falls, SD – August 7th, 2019:
Monthly Market Indicators
In July, the U.S. economic expansion that began in June 2009 became the longest in the nation’s history, marking 121 straight months of gross domestic product growth and surpassing the 120-month expansion from 1991 to 2001. The average rate of growth during this expansion has been a milder 2.3 percent per year compared to 3.6 percent during the 1990s. Although the economy should continue to perform well for the rest of 2019, most economists see a mild recession on the horizon.
New Listings in the Sioux Falls region increased 0.1 percent to 703. Pending Sales were up 32.9 percent to 670. Inventory levels fell 6.7 percent to 1,660 units.
Prices continued to gain traction. The Median Sales Price increased 8.1 percent to $224,950. Days on Market was down 1.4 percent to 71 days. Sellers were encouraged as Months Supply of Homes for Sale was down 6.8 percent to 4.1 months.
During the record-setting 121-month economic expansion, the unemployment rate has dropped from 10.0 percent in 2009 to 3.7 percent, yet many consumers continue to struggle financially. Low mortgage interest rates have helped offset low housing affordability, but high home prices are outpacing median household income growth. In a move to stoke continued economic prosperity, the Federal Reserve reduced the benchmark interest rate by a quarter point to about 2.25 percent, marking the first reduction in more than a decade.
Housing Supply Overview
Although the situation is not exactly the same in every city neighborhood and bedroom community across the country, total sales and the number of available homes for sale are consistently much fewer in year-over-year comparisons within the lowest price tiers. For the 12-month period spanning August 2018 through July 2019, overall Pending Sales in the Sioux Falls region remained flat for the period. The price range with the largest gain in sales was the $900K to $1M range, where they increased 116.7 percent.
The overall Median Sales Price was up 4.1 percent to $208,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 4.8 percent to $201,250. The price range that tended to sell the quickest was the $100K to $150K range at 71 days; the price range that tended to sell the slowest was the $800K to $900K range at 151 days.
Market-wide, inventory levels were down 6.7 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 4.4 percent. That amounts to 4.0 months supply for Single-Family homes and 4.4 months supply for Condos.