Home sales plummet in Sioux Falls as prices rise – SiouxFalls.Business

October 7, 2022

Sales of gated homes in the city of Sioux Falls fell sharply in September as the average price of a home sold hit a record low.

According to the Realtor Association of the Sioux Empire Inc., 269 sales were completed for the month.

This represents a 24% year-over-year decline. Combined with a 5.4% drop in new listings, it left the market with a 2.3 month supply of available homes.

The average price of a home sold in the city in September reached $371,027, up 16.7% from the same period last year. The median sale price, $315,000, is up 14.4%.

“The U.S. housing market continues to slow as we head into the fall as rising consumer prices and rising mortgage interest rates squeeze homebuyer budgets and slow activity,” according to an analysis included in the report.

“Affordability issues have kept many buyers out of the market this year, and successful homebuyers are finding homeownership costs have risen dramatically, with monthly mortgage payments more than 55% higher. higher than a year ago, according to the National Association of Realtors.Inventory remains below normal and, as the market continues to move, experts predict that homes will start to spend more days on the market and that price growth will slow in the coming months.

The average home in Sioux Falls spent 64 days on the market before selling in September, two days less than the same time last year. On average, sellers still receive 100.9% of the original listing price, although that’s down half a percentage point year-over-year.

“The cost of borrowing hit multi-year highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the first time since 2008, driving down sales of existing homes for the seventh month in a row,” the report said.

In the Sioux Falls area, the construction type with the largest price increase was new construction, with prices rising 24.8% to an average of $343,122. The fastest-selling price range is $150,000 to $200,000, while the slowest-selling homes cost $1 million or more.

Builder confidence fell for the ninth consecutive month in September as high home prices, rising interest rates and high construction costs continue to impact affordability, reducing buyer traffic and hampering new home sales, according to the National Association of Home Builders and the Wells Fargo Housing Market Index. .