Hot Housing Market in Sioux Falls: It's a seller's dream in Sioux Falls right now. Homes are flying off the market due to low inventory and high buyer demand. This competition among buyers pushes prices up and gives sellers the upper hand in negotiations. Expect homes to sell fast and potentially above the asking price. Here are the latest trends in the Sioux Falls housing market.
Current Sioux Falls Housing Market Trends
Increased Activity in New Listings and Pending Sales
According to REALTOR® Association of the Sioux Empire (RASE), the data reveals a notable uptick in new listings within the Sioux Falls region, with a 2.8 percent increase totaling 548 listings. This surge in inventory suggests a growing interest in the market, potentially offering buyers more options to explore.
Moreover, pending sales have soared by an impressive 53.3 percent, reaching a total of 420. This surge in pending transactions indicates a heightened level of buyer activity and a willingness to move forward with property purchases.
Inventory Levels and Price Trends
Despite the increase in new listings and pending sales, inventory levels have also seen a rise, climbing by 3.1 percent to reach 1,350 units. While this may seem contradictory, it suggests a healthy balance between supply and demand, providing buyers with more choices without overwhelming the market.
On the pricing front, there's good news for sellers as median sales prices continue to gain traction. With a significant uptick of 9.9 percent, the median sales price now stands at $312,000. This upward trend bodes well for sellers looking to maximize their returns on investment.
Market Dynamics and Buyer Empowerment
Despite the favorable conditions for sellers, buyers are not left behind in this dynamic market. With days on market increasing by a modest 1.1 percent to 89 days, buyers have a slightly longer window to make informed decisions without feeling rushed.
Additionally, buyers may feel empowered by the increase in months supply of homes for sale, which rose by 5.7 percent to 3.7 months. This metric indicates the number of months it would take to sell the current inventory at the current pace of sales. A higher months supply suggests a more balanced market, giving buyers more negotiating power.
Exploring the Sioux Falls Housing Market Forecast
According to Zillow, the average home value in Sioux Falls stands at $321,648, reflecting a 3.9% increase over the past year, based on data up to March 31, 2024. This figure provides an essential snapshot of the market's health, indicating the general trend in property values.
Breaking down these figures unveils several key housing metrics that shed light on the market's performance. As of March 31, 2024, there were 557 homes available for sale, indicating the inventory available to potential buyers. Additionally, 156 new listings were added in the same period, showcasing the flow of properties into the market.
The median sale price as of February 29, 2024, was $289,750, while the median list price as of March 31, 2024, stood at $326,633. These metrics provide insights into the pricing dynamics within the Sioux Falls housing market, reflecting both buyer and seller behaviors.
Looking ahead, the Sioux Falls Metropolitan Statistical Area (MSA) housing market is projected to experience steady growth. Based on data from Zillow, the forecast indicates an upward trajectory, with an expected 0.5% increase by April 30, 2024, followed by a more substantial 1% growth by June 30, 2024. By March 31, 2025, the forecast predicts a significant 1.6% rise in housing market activity. This projection underscores the region's resilience and potential for expansion.
The term Metropolitan Statistical Area (MSA) refers to a geographical region with a high degree of social and economic integration. In the case of Sioux Falls, the MSA encompasses several counties within South Dakota, serving as a comprehensive representation of the local housing market. This expansive scope reflects the diversity and scale of the area's residential landscape.
The Sioux Falls MSA constitutes a substantial segment of the state's housing market, characterized by its sizeable population and economic activity. Spanning multiple counties, this market encompasses a wide range of communities and neighborhoods, catering to diverse housing needs and preferences. Its significance lies in its contribution to the regional economy and its role as a hub for residential development and investment.
Are Home Prices Dropping in Sioux Falls?
Despite fluctuations in the housing market, there is currently no evidence to suggest a significant drop in home prices in Sioux Falls. The median sale price of $289,750 as of February 29, 2024, coupled with a median list price of $326,633 as of March 31, 2024, indicates a stable pricing environment. However, it's essential to monitor market trends regularly to anticipate any potential shifts in pricing dynamics.
While no market is immune to downturns, the Sioux Falls housing market currently exhibits signs of stability and gradual growth. The steady increase in home values and modest fluctuations in inventory suggest a resilient market that is less susceptible to abrupt crashes. However, continued monitoring and prudent decision-making remain crucial to navigate potential market risks.
Is Now a Good Time to Buy a House in Sioux Falls?
For prospective homebuyers, the current housing market conditions in Sioux Falls may present favorable opportunities. Mortgage rates, which are lower compared to the previous year, contribute to increased affordability and purchasing power. With an average home value of $321,648 as of March 31, 2024, buyers may find value in exploring the market for potential investment opportunities. However, individual circumstances and financial considerations should always dictate the timing of a home purchase.
Should You Invest in the Sioux Falls Real Estate Market?
Sioux Falls, South Dakota is a city that has been attracting a lot of attention from real estate investors in recent years, thanks to its strong economy, affordable housing, and high quality of life. If you're considering investing in the Sioux Falls real estate market, there are many compelling reasons to do so. The city's economy is diverse and growing, with major employers in healthcare, finance, and manufacturing, which has created a strong demand for housing, especially in the rental market.
Additionally, Sioux Falls has a growing population and is consistently ranked as one of the best places to live in the United States. With a focus on the keyword “Sioux Falls real estate market,” it's clear that this city is a promising destination for real estate investors looking for a stable and profitable market. However, as with any investment, it's important to weigh the potential risks and benefits before making a decision.
If you're considering investing in the Sioux Falls real estate market, here are some top reasons why it might be a good idea:
- Strong job market: Sioux Falls has a diverse and growing economy, with major employers in industries like healthcare, finance, and manufacturing. This means that there is a steady demand for housing, and the rental market is particularly strong.
- Affordable housing: The cost of living in Sioux Falls is relatively low compared to other parts of the country, which means that housing prices are also relatively affordable. This can make it easier to generate cash flow from rental properties, and there may also be potential for appreciation over time.
- Growing population: Sioux Falls has been consistently growing over the past decade, with a population increase of more than 14% since 2010. This means that there is likely to be continued demand for housing in the city.
- Quality of life: Sioux Falls is consistently ranked as one of the best places to live in the United States, with a high quality of life, a strong sense of community, and abundant outdoor recreation opportunities.
- The Low Tax Rate: One advantage of investing in the Sioux Falls real estate market is the low tax rate, as there is no state or local income tax or state business income tax. Although the state has a slightly higher than average property tax rate of 1.2 percent, the low overall property costs in Sioux Falls result in average to below-average property tax bills. Additionally, property owners in Sioux Falls benefit from the state's lack of laws on certain issues, such as the requirement to provide receipts for deposits or record deposit withholdings, though it's recommended to do so. With no state or local income tax or state business income tax, investors can potentially save money on taxes and increase their overall return on investment.
Despite these benefits, there are also some potential drawbacks to investing in the Sioux Falls real estate market. One potential concern is the risk of overbuilding, particularly in the apartment sector. There is also the risk of a downturn in the local economy, particularly if there are major shifts in industries that drive job growth in the region.
Overall, however, Sioux Falls appears to be a promising market for real estate investors, particularly those looking for strong cash flow from rental properties in a growing and stable community. As with any investment, it's important to conduct thorough due diligence and work with local experts to make informed decisions.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Sources:
- https://www.zillow.com/sioux-falls-sd/home-values/
- https://rase-inc.org/rase-members/monthly-rase-mls-statistics/
- https://www.redfin.com/city/15282/SD/Sioux-Falls/housing-market
- https://www.realtor.com/realestateandhomes-search/Sioux-Falls_SD/overview