The real estate industry is showing signs of sleepiness as autumn sets into Sioux Falls. Inventory is low, prices are high, and there are fewer sales this month than there were last month. However, there’s still activity taking place and deals being done before the onset of the holiday season, which is when sales are notoriously low.
Last year in September, there were 4,572 pending sales in Sioux Falls. This year, that number is up to 4,948, just 58 fewer than this time last month.
This month, sales prices are up by five percent at $189,000, which is about $1,500.00 higher than last month’s average sales price, but $9,000 higher than home values this same time last year.
Length of Stay on the Market
During September, it took an average of 86 days for a house to close, which is eight days slower than this time last month when it took only 78 days for a house to sell. However, last year, the average length of time from list to close for a house for sale was 90 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 September of 2016, sellers received approximately 98.5 percent of their asking price. Contrarily, last month, buyers paid 98.8 percent of the selling price on the homes they bought, on average. This month, that number rests at 98.7 percent.
Inventory refers to the number of houses available for sale on the market. A healthy inventory is a six-month supply. During September in Sioux Falls, there were approximately 1487 houses available, a 3.6-month supply, down 23.4 percent from last month’s 1,507 available houses. In contrast, last year saw a 4.7-month supply and 1786 homes for sale. Last month, buyers had twenty more houses to choose from than there are this month.
What This Means for Sellers
Real estate sales are beginning to slow, as anticipated, going into the autumn season. Fewer houses are selling, and it’s taking an average of eight days longer for them to sell than last month. However, the houses that do sell are selling at slightly higher prices than previous months. There’s a tight squeeze on inventory, so buyers may already be familiar with your listing while fewer new buyers enter the market. If you’re going to list now, you can anticipate about an 86 day wait from list to close, and you should get around 98.8% of your asking price.
What This Means for Buyers
There are twenty fewer houses to choose from this month than last, and the prices on the existing homes for sale are increasing. As inventory drops and competition increases, the prices of the available homes climb upward. If you buy a house in Sioux Falls now, you can expect to pay 98% of the asking price, move in about 86 days, and pay a slightly higher price than buyers paid last month.
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