Aug. 7, 2019

Home prices in Sioux Falls hit another record high in July, while the overall number of homes sold in the city dropped.

The average price of a home sold in the city last month was $270,921, an increase of 10.9 percent year-over-year. The median price was $226,500 – a 7.6 percent increase, according to the Realtor Association of the Sioux Empire.

Closed sales dropped 3.6 percent, while new listings fell 10.8 percent.

“Although the economy should continue to perform well for the rest of 2019, most economists see a mild recession on the horizon,” according to an analysis included with the report.

“During the record-setting 121-month economic expansion, the unemployment rate has dropped from 10 percent in 2009 to 3.7 percent, yet many consumers continue to struggle financially.

“Low mortgage interest rates have helped offset low housing affordability, but high home prices are outpacing median household income growth. In a move to stoke continued economic prosperity, the Federal Reserve reduced the benchmark interest rate by a quarter-point to about 2.25 percent, marking the first reduction in more than a decade.”

Homes are selling faster, though. The average house spent 69 days on the market in Sioux Falls before selling in July, which is four days faster than last year.

Inventory continues to fall, ending July at a 3.5-month supply, down 12.5 percent year-over-year.