Sioux Falls is currently a housing market that favors buyers. This is due to the increase in inventory and the rise of the monthly supply. The increased supply of homes for sale and increased inventory levels have led to a buyer’s market in Sioux Falls.
Current Sioux Falls Housing Market Trends
The Sioux Falls housing market for December was affected by various factors. Here is an in-depth look at the housing market statistics from the REALTOR(r) Association of the Sioux.
New Listings
1. New Listings. New listings in the Sioux Falls area have increased by a noticeable 1.0 percent, totaling 297. This new influx of properties shows a market that is dynamic and growing.
2. Pending Sales: In Sioux Falls, the housing market has seen a significant 13.5 percent increase in pending sales. The total is now 319. This increase in sales suggests a strong demand for property, contributing to the overall vibrancy.
Inventory levels and prices
3. Inventory levels: In Sioux Falls, the inventory level increased by 10.2 percent to 1,262 total units. This increase in inventory gives buyers more choices, but it also shows a market that is competitive and has a large number of available properties.
4. Prices: The Median Sale Price has continued to rise, registering a 1.8 percent gain and reaching $295,000. This price appreciation demonstrates the stability and strength of the Sioux Falls housing market.
Days on the Market and Buyer Empowerment
5. Days on Market – The average number of days a property remains on the market is 76. This stability indicates a well-balanced market where properties are sold in a reasonable amount of time.
6. The Months’ Supply of Homes For Sale has increased by 20 percent, reaching 3.6 months. This puts buyers in Sioux Falls in a better position. This surplus of supply gives buyers more excellent options and more negotiating power.
Are Home Prices Dropping in Sioux Falls?
The data shows that the median sales price has increased by 1.8 percent. The upward price trend indicates a robust and healthy housing market in Sioux Falls, where property values are rising.
Will this housing market crash?
The data provided does not indicate an imminent crash in the housing market. Consistent growth in listings, pending transactions, and prices combined with a stable amount of days on the market point to a resilient real estate market in Sioux Falls.
Now is an excellent time to buy a house.
With the current favorable conditions, such as an increased inventory and a greater monthly supply of Homes for Sale, it may be a good time for buyers in Sioux Falls. Property prices are steadily rising, which indicates future appreciation potential. This makes it more attractive to potential buyers.
Sioux Falls Housing Market Forecast 2024
Sioux Falls’ housing market is undergoing significant changes. According to the latest data provided by Zillow, the average home price stands at $308,478. This represents a 2,5% increase in the last year. The positive outlook and steady rise in home values indicate no imminent danger of a Sioux Falls housing crash. The closely monitored metrics and predicted trends indicate a resilient, sustainable market.
Key Housing Measurements
- For Sale Inventory (December 31st, 2023): 649
- New Listings for December 31st, 2023: 150
- Median Sale Price (November 30th, 2023): $280,833
- Median list price (December 31st, 2023): 327,433
Sioux Falls MSA Housing Market Forecast
Zillow offers insights into the upcoming months by examining the Market Statistical Area forecast for Sioux Falls, SD. According to the most recent data, January 31st, 2024, is expected to remain the same, while March 31st, 2024, will see a modest 0.1% growth. The December 31st, 2024 forecast shows a more significant 3 percent growth.
The MSA or Market Statistical Area encompasses Sioux Falls, South Dakota, and the surrounding counties. This region is a crucial player in the housing industry, influencing trends and economic dynamics. These MSA counties collectively influence the housing market in the region, making it an essential player on the real estate scene.
Should you invest in Sioux Falls real estate?
Sioux Falls in South Dakota has attracted much attention from investors over the past few years due to its high quality of living, strong economy, and affordable housing. You should invest in the Sioux Falls property market for many reasons. Sioux Falls’s economy is growing and diverse, with employers in healthcare, manufacturing, finance, and banking. This has led to a high demand for housing in the city, particularly in the rental market.
Sioux Falls is also a city with a growing population, consistently ranked among the best places to reside in the United States. The Sioux Falls market is an attractive destination for investors looking for a profitable and stable market. As with any investment decision, it is essential to consider the risks and rewards before making a final choice.
Here are some reasons to consider investing in the Sioux Falls real estate market:
- Strong Job Market Sioux Falls is a growing and diverse economy with employers from healthcare, manufacturing, and finance industries. Rent is in high demand, as housing is constantly needed.
- Affordable housing The cost of housing in Sioux Falls, South Dakota, is also affordable. Renting out properties can generate a steady cash flow, and they may even appreciate over time.
- Growing Population Sioux Falls’ population has grown steadily over the last decade. It is up more than 14% from 2010. The city is expected to continue to have a high demand for housing.
- High quality of life Sioux Falls consistently ranks as one of the top places to live in America, thanks to its high standard of living, strong community spirit, and abundance of outdoor recreational opportunities.
- Low Tax Rate One of the advantages of investing in Sioux Falls is the low rate. There is no local or state income tax or business income tax. The state’s property tax rate is 1.2 percent higher than the national average. Still, the lower property costs in Sioux Falls lead to property tax bills that are average or below average. Sioux Falls property owners also benefit from a lack of state laws in certain areas, including the requirement to record withholdings or provide deposit receipts. Investors can save on taxes by not paying state, local, or business income taxes.
Sioux Falls real estate market has many benefits. However, it also has some drawbacks. Overbuilding is a concern, especially in the apartment market. The local economy could also be affected by a recession, especially if industries driving job growth in a region undergo significant changes.
Sioux Falls generally appears to be an attractive market for investors. This is especially true for those seeking a stable and growing community with a solid rental property market. To make an informed decision, you should conduct due diligence on any potential investment and consult local experts.
For most investors, buying or selling real estate is one of their most important decisions. Choosing a real estate professional/counselor continues to be a vital part of this process. They know the critical factors that will affect your market, including changes in conditions, forecasts, consumer attitude, best locations, timing, and interest rates.