Given the increased inventory levels and the rise in the monthly supply of Homes for Sale, Sioux Falls currently leans towards a buyer's housing market. Buyers have more choices, and the increased competition among sellers may lead to favorable deals for those looking to purchase a property.
Current Sioux Falls Housing Market Trends
The housing market in Sioux Falls for December was influenced by several key factors, impacting various aspects of the market. Here's an in-depth analysis of the housing market statistics for the month from the REALTOR® Association of the Sioux Empire (RASE).
New Listings and Pending Sales
1. New Listings: In the Sioux Falls region, there has been a notable 1.0 percent increase in new listings, reaching a total of 297. This influx of new properties indicates a dynamic market with continuous growth.
2. Pending Sales: The housing market in Sioux Falls has experienced a substantial 13.5 percent surge in pending sales, reaching a total of 319. This uptick suggests a high demand for properties, contributing to the overall vibrancy of the market.
Inventory Levels and Prices
3. Inventory Levels: The inventory levels in Sioux Falls rose by 10.2 percent, reaching a total of 1,262 units. While this increase in inventory provides more options for buyers, it also indicates a competitive market where sellers have a substantial number of properties available.
4. Prices: The Median Sales Price continued its upward trajectory, experiencing a 1.8 percent increase and reaching $295,000. This price appreciation demonstrates the overall strength and stability of the housing market in Sioux Falls.
Days on Market and Buyer Empowerment
5. Days on Market: The average number of days a property stays on the market remained steady at 76 days. This stability suggests a well-balanced market where properties are being sold within a reasonable timeframe.
6. Buyer Empowerment: With the Months Supply of Homes for Sale increasing by 20.0 percent and reaching 3.6 months, buyers in Sioux Falls are finding themselves in a more advantageous position. This surplus in supply gives buyers more options and negotiating power.
Are Home Prices Dropping in Sioux Falls?
No, the data indicates a 1.8 percent increase in the Median Sales Price. This upward trend in prices suggests a healthy and robust housing market in Sioux Falls, where property values are on the rise.
Will This Housing Market Crash?
There is no evidence in the provided data to suggest an imminent housing market crash. The consistent growth in new listings, pending sales, and prices, coupled with a stable number of days on market, points to a resilient and thriving market in Sioux Falls.
Is Now a Good Time to Buy a House?
Yes, with the current buyer-friendly conditions, including increased inventory and a higher Months Supply of Homes for Sale, now might be an opportune time for buyers to enter the Sioux Falls housing market. The steady rise in property prices also indicates a potential for future appreciation, adding to the appeal for potential homebuyers.
Sioux Falls Housing Market Forecast 2024
The Sioux Falls housing market has been experiencing notable shifts, and as of the latest data from Zillow, the average home value stands at $308,478, reflecting a 2.5% increase over the past year. Given the steady growth in home values and the positive forecast, there is no immediate indication of a housing market crash in Sioux Falls. The carefully monitored metrics and forecasted trends suggest a resilient and sustainable market environment.
Key Housing Metrics
- For Sale Inventory (December 31, 2023): 649
- New Listings (December 31, 2023): 150
- Median Sale Price (November 30, 2023): $280,833
- Median List Price (December 31, 2023): $327,433
Sioux Falls MSA Housing Market Forecast
In examining the Market Statistical Area (MSA) forecast for Sioux Falls, SD, Zillow provides insights for the upcoming months. As of the latest data, the forecast for January 31, 2024, anticipates no change, but by March 31, 2024, there is a modest 0.1% increase. Looking further ahead to December 31, 2024, the forecast projects a more substantial 3% growth.
The MSA, or Market Statistical Area, encompasses Sioux Falls and its surrounding counties in South Dakota. This region plays a crucial role in the housing market, influencing trends and economic dynamics. The counties within this MSA collectively contribute to the region's housing market, making it a significant player in the broader real estate landscape.
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.
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