09/06/2020
RASE August 2020 Housing Market Statistical Reporting
Sioux Falls, SD – Sept 4th, 2020:
Monthly Market Indicators
The housing and stock markets continue to be the leaders in the economy. In August, showings and pending sales remained at strong levels while housing inventory remained limited, continuing the competitive bidding market we have seen in recent months. With the stock indexes at or near record highs as mortgage rates remain near record lows, signs point to a busy fall housing market.
New Listings in the Sioux Falls region decreased 17.6 percent to 593. Pending Sales were up 19.6 percent to 653. Inventory levels fell 34.6 percent to 1,318 units.
Prices continued to gain traction. The Median Sales Price increased 8.8 percent to $234,900. Days on Market was down 2.6 percent to 74 days. Sellers were encouraged as Months Supply of Homes for Sale was down 44.2 percent to 2.9 months.
As we look towards the fall, we normally see housing activity begin to slow a bit as the back-to-school season begins, but this year is far from normal. While uncertainty remains on what effects the upcoming elections and any seasonal resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today will create significant tailwinds in the near term.
Housing Supply Overview
The housing and stock markets continue to be the leaders in the economy. In August, showings and pending sales remained at strong levels. Housing inventory remained limited in many segments, continuing the competitive bidding we have seen across much of the market in recent months. Nationally, the Commerce Department and U.S. Housing and Urban Development report total housing production is up 22.6% to a seasonally adjusted annual rate of nearly 1.5 million units, the highest rate since February. According to the National Association of Home Builders estimates, lumber prices have surged more than 110% since mid-April, adding approximately $14,000 to the typical new single-family homes. For the 12-month period spanning September 2019 through August 2020, Pending Sales in the Sioux Falls region were up 16.8 percent overall. The price range with the largest gain in sales was the $450K to $500K range, where they increased 79.2 percent.
The overall Median Sales Price was up 6.7 percent to $224,000. The construction type with the largest price gain was the Previously Owned segment, where prices increased 6.3 percent to $217,900. The price range that tended to sell the quickest was the $150K to $200K range at 74 days; the price range that tended to sell the slowest was the $800K to $900K range at 139 days.
Market-wide, inventory levels were down 34.6 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 34.2 percent. That amounts to 2.8 months supply for Single-Family homes and 3.4 months supply for Condos.
