RASE November 2011 Housing Market Statistical Reporting
Sioux Falls, SD – December 9, 2011: Home prices are one of the most popular barometers of market vitality, yet they only tell part of the story. Soft prices may accompany improvements in other indicators such as purchase demand, absorption rates, seller concessions or market times. Regional, market-wide prices fall short by not recognizing the mix of homes that close each month, be it weighted toward single-family, lender-mediated or new construction. In addition, price movements often lag changes elsewhere in the marketplace. Let's see what the preferred market yardstick has measured for November 2011.
New Listings in the Sioux Empire region decreased 14.6 percent to 287. Pending Sales were down 13.9 percent to 180. Inventory levels shrank 14.4 percent to 1,837 units, a common trend across the country.
Prices were a tad soft. The Median Sales Price decreased 8.5 percent to $130,750. Days on Market increased 2.0 percent to 102 days. Absorption rates improved as Month’s Supply of Inventory was down 15.6 percent to 7.3 months.
Not only do forces beyond supply and demand affect home prices, but other factors outside of housing serve as inputs into the equation. New job growth and consumer confidence drive household formations which in turn fuels purchase demand and pressures prices. Similarly, when real incomes rise, families can afford more house and move-up buyers become increasingly motivated. To that end, the jobless rate fell from 9.0 percent to 8.6 percent in November – the lowest in 2.5 years.
Greg Sax, 10k Research & Marketing
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