Sioux Falls, SD – September 12, 2011:Despite some choppy waters in August, there have been noteworthy shifts on both sides of the closing table. Buyer activity is moving back in line with historical trends while sellers are making fewer concessions in order to sell their homes. Falling supply and improving absorption rates in many regions also suggest that market balance is realigning towards neutral. Locally, a few indicators posted positive movement over August 2011, but do the rest of the numbers provide reason for optimism?
New Listings in the Sioux Falls region decreased 5.1 percent to 498. Pending Sales were up 24.3 percent to 292. Inventory levels shrank 7.1 percent to 2,195 units, dampening any potential oversupply issues down the road.
Prices dipped lower. The Median Sales Price decreased 5.0 percent to $141,250. Days on Market increased 12.8 percent to 99 days. Absorption rates slowed as Months Supply of Inventory was up 9.7 percent to 9.3 months.
The economy bobbed along just this side of positive in August. Consumer confidence, which often affects housing demand, showed some slack even as personal income and spending both increased modestly. Low interest rates, declining supply and stabilizing prices are beacons of hope in the harbor, but the recovery still needs wind in its sails.
Greg Sax, 10k Research & Marketing