Monthly RASE MLS Statistics
RASE January 2020 Housing Market Statistics
Sioux Falls, SD – February 5th, 2020:
Monthly Market Indicators
For 2020, The National Association of REALTORS® Chief Economist Lawrence Yun sees good news for home prices. “National median home price growth is in no danger of falling due to inventory shortages and will rise by 4%,” the long-term NAR economist predicts. He is also expecting the new-home construction market sales to increase 10%. Yun and others would like to see home builders bring more affordable units to market to help ease shortages and slow price gains in that segment.
New Listings in the Sioux Falls region decreased 1.1 percent to 438. Pending Sales were up 53.9 percent to 314. Inventory levels fell 12.0 percent to 1,219 units.
Prices continued to gain traction. The Median Sales Price increased 2.5 percent to $209,900. Days on Market was up 3.1 percent to 99 days. Sellers were encouraged as Months Supply of Homes for Sale was down 14.3 percent to 3.0 months.
We start off the year with continued low interest rates, low unemployment, and rising rents nationally. These factors should encourage healthy buyer demand and sets us up for a strong start to the 2020 housing market and a lot of optimism for the coming spring market.
Housing Supply Overview
As the cost of renting continues to increase, consumers have more incentive to lock in their housing costs by purchasing a home. The latest CoreLogic Single-Family Rent Index report released this month saw the cost of renting single-family homes, including condos, up 3% in November 2019 versus November 2018. According to CoreLogic’s data, single-family rents started climbing in 2010 and have stabilized around an annualized rate of 3% since early 2019. For the 12-month period spanning February 2019 through January 2020, Pending Sales in the Sioux Falls region were up 3.2 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 4.9 percent to $214,500. The construction type with the largest price gain was the Previously Owned segment, where prices increased 6.1 percent to $209,000. The price range that tended to sell the quickest was the $150K to $200K range at 73 days; the price range that tended to sell the slowest was the $800K to $900K range at 175 days.
Market-wide, inventory levels were down 12.0 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 11.1 percent. That amounts to 2.9 months supply for Single-Family homes and 3.5 months supply for Condos.