10/06/2022
Sioux Falls, SD – Oct 6, 2022:
September 2022 Housing Market Statistical Reporting
Monthly Market Indicators
The U.S. real estate market continues to slow as we move into fall, as rising consumer prices and higher mortgage interest rates squeeze homebuyer budgets and cool activity. With inflation showing little sign of abating, the Federal Reserve implemented another 75-basis-point hike in September, marking the third such rate increases this year. The cost of borrowing has reached 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, causing existing home sales to decline for the seventh consecutive month.
New Listings in the Sioux Falls region increased 1.0 percent to 578. Pending Sales were up 9.4 percent to 571. Inventory levels fell 26.0 percent to 1,122 units.
Prices continued to gain traction. The Median Sales Price increased 11.7 percent to $304,500. Days on Market was down 2.9 percent to 66 days. Sellers were encouraged as Months' Supply of Homes for Sale was down 24.2 percent to 2.5 months.
Affordability challenges have priced many buyers out of the market this year, and buyers who do succeed in purchasing a home are finding that the costs of homeownership have increased significantly, with monthly mortgage payments more than 55% higher than a year ago, according to the National Association of REALTORS®. Inventory remains lower than normal, and as the market continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.
Housing Supply Overview
Builder confidence declined for the ninth consecutive month in September, as high home prices, rising interest rates, and elevated building costs continue to impact affordability, reducing buyer traffic and hindering new home sales, according to the National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI). The NAHB reports builder confidence dropped 3 points to 46 in September; by contrast, the index stood at 83 in January, when interest rates were half of what they are now. For the 12-month period spanning October 2021 through September 2022, Pending Sales in the Sioux Falls region were down 2.1 percent overall. The price range with the largest gain in sales was the $700K to $800K range, where they increased 95.7 percent.
