New home listings, inventory show sharp drop in October

Nov. 11, 2020

Sioux Falls ended October with one of the lowest inventory of homes on the market on record.

The city had a two-month supply of homes available to end the month, down 53.6 percent year-over-year, according to the Realtor Association of the Sioux Empire Inc.

That’s in part because new listings dropped nearly 37 percent and closed sales increased 6.8 percent.

“October continued to be busier than the calendar normally suggests,” according to an analysis included with the RASE report.

“Buyer activity remains higher than normal for this time of year, while in many segments of the market, housing supply remains much lower than one year ago. Multiple offers remain a common occurrence in many areas, keeping housing hot while the temperatures continue to fall.”

The average home sold in October received 99.8 percent of original list price.

The average price of a home sold in Sioux Falls was $285,920 last month, an 11.8 percent increase, and the median price was $249,900, a 9.4 percent increase.

“Mortgage rates dropped to new record lows again in October, helping to offset the monthly mortgage payment increases caused by the rise in home prices seen in many segments of the market across the country,” the report said.

“While prices often dip a bit in the winter months, continued buyer demand may temper any price retreats this year.”

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New home listings, inventory show sharp drop in October

Sioux Falls ended October with one of the lowest inventory of homes on the market on record.

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