It may not be time to pop the cork on the champagne to celebrate real estate success in Sioux Falls, but it’s also not anywhere close to time to throw in the towel. In fact, there seems to be an awkward balance wherein the number of sales closed decreased while the average sales price was on the rise. The biggest hurdle is in available inventory, which is dropping substantially.
A Look at the Housing Stats
From June of last year to June of 2017, there was an 11.9 percent increase in pending sales in the Sioux Falls area. 2016 recorded 4,483 units sold whereas 2017 documents 5,015 sales.
Most of the homes sold ranged in price from about $150,000-$200,000, up 13.7 percent from June of last year, but the most remarkable increase was in luxury homes costing more than a million dollars. Last year, ten homes sold for over a million whereas this year saw 26 luxury homes sold, an increase of 160 percent.
What Does this Data Mean?
In 2016, sellers received 98.4 percent of their original list price. This year, that number is up .3 percent to 98.7 percent.
Homes for sale on the market last June remained listed for an average of 90 days and this year shows a stay of about 87 days for a difference of 3.3 percent.
The real problem seems to be connected to available inventory. Last year at this time, there were 1,901 units available for sale whereas this year drops 23.9 percent to just 1,447 units available. Last year showed a 5.1 month supply of inventory, and this year fell 31.4 percent to just 3.5 months of inventory.
What does this mean if you’re buying a house in Sioux Falls?
It may take you three months to sell, start to finish, but with significant chances of earning almost the original list price. This success is particularly the case with homeowners selling houses in the $150,000-$200,000 price range, or luxury properties exceeding a million dollars. Many homeowners are also experiencing multiple offers on their homes for sale, creating more opportunities to close on deals that meet seller’s needs – not only in sales price but also regarding timeline and contingencies.
What does this mean if you’re selling a house in Sioux Falls?
With rising prices and declining inventory, there’s a competitive vibe in Sioux Falls real estate, primarily in the most common need for housing – homes that fall in the $150,000-$200,000 price bracket. With fewer options available to choose from, it may take longer to find a home you feel is worthy of an offer, and when you do, it’s likely the owner will receive competing bids. And with those numbers steadily growing, you may find it in your best interest to move quickly and aggressively toward purchasing the home you want.
There’s nothing too concerning or too rewarding about real estate trends in Sioux Falls this month, other than luxury sales. Traditional inventory is dropping steadily while sales prices also increase. This trend in property sales is great for sellers and challenging for buyers, creating a seller’s market.
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