The real estate industry is moving right along as we step into cooler months, but there is a noticeable difference in some of the numbers we’re reporting this month. The inventory is still low for the area, but you can bet that there’s still plenty of action happening even as we roll into the holiday season.
Last year in October, there were 3,974 pending sales in Sioux Falls. This year, that number is up to 4,232, just three fewer than this time last month.
This month, sales prices are down by 1.7 percent at $190,250, which is about $3,250 lower than last month’s average sales price, but $10,450 higher than home values this same time last year.
Length of Stay on the Market
During October, it took an average of 79 days for a house to close, which is two days slower than this time last month when it took only 77 days for a house to sell. However, last year, the average length of time from list to close for a house for sale was 88 days, so 2017 is still ahead of the game.
Percent of List Price to Sales Price
One thing that hasn’t changed too much month-over-month or year-over-year is the percentage of earnings sellers receive from asking price to selling price. In October of 2016, sellers received approximately 98.3 percent of their asking price versus paying 99 percent of the selling price on the homes they bought, on average for the same time in 2017. This month, that number has increased by 0.7 percent from the previous month.
Inventory refers to the number of houses available for sale on the market. A healthy inventory is a six-month supply. During October in Sioux Falls, there were approximately 1,417 houses available, a 3.5-month supply, down 14.2 percent from last month’s 1,618 available houses. In contrast, last year saw a 4.4-month supply and 1,662 homes for sale. Last month, buyers had approximately 200 more houses to choose from than there are this month.
What This Means for Sellers
Although real estate sales are slowing down from the previous month, the real estate market is much more robust than it was at this same time the previous year. As the winter months approach, the market slows, as expected. Slightly fewer homes are selling. Also, it’s taking an average of two days longer for them to sell than last month. The homes that do sell are selling at slightly lower prices than previous months. As real estate stays on the market for an average of 79 days, it is possible that prospective buyers will be familiar with your property as fewer buyers enter the market to buy a home. Therefore, if you choose to sell your home now, you can expect your home to be on the market for an average of 79 days. Although it may take some time to sell, you can look forward to receiving close to 99 percent of your asking price.
What This Means for Buyers
There are 200 fewer homes to choose from this month than last. Fortunately for buyers, home prices appear to be decreasing somewhat. However, as inventory drops, and competition increases, the prices of the available homes will begin to climb upward. If you buy a house in Sioux Falls now, you can expect to pay 99% of the asking price. Additionally, expect to close on the deal in about 79 days.
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