We've spent the last several weeks talking about different pieces of today's real estate market.
Pricing.
Negotiating.
Days on market.
Interest rates.
Appraisals.
Buyer and seller leverage.
So, as we head into fall, I thought it would be a good time to step back and look at the bigger picture.
What's actually happening in the Sioux Falls housing market right now?
Here are four things I'm watching.
1. Inventory
The August statistics from the Realtor Association of the Sioux Empire show 1,676 homes in inventory.
Why does that matter?
Inventory determines how much competition buyers and sellers face.
More choices can give buyers more leverage.
For sellers, it means understanding exactly what you're competing against before deciding on price.
But as we've discussed throughout this quarter, inventory isn't distributed evenly.
A buyer shopping at $300,000 may experience a completely different market than someone shopping at $700,000.
2. Homes Aren't Automatically Selling Overnight
RASE reported 77 days on market in its August statistics. Other datasets calculate this differently—for example, Realtor.com reported a citywide median of 46 days, while its metro series was 47 days.
The exact number isn't really my takeaway.
The takeaway is this:
Today's seller needs a strategy.
Putting a house on the market and assuming buyers will immediately compete for it isn't a plan.
Price, condition, presentation and competition matter.
3. Prices Haven't Simply Collapsed
RASE's August median price was $328,000.
Other current datasets put the citywide median higher depending on how the data is calculated. Realtor.com reported a $344,050 median sold price for August.
That's another reason I don't like making decisions based on one headline.
The more useful question is:
What's happening with homes like yours?
Your neighborhood, price range and property type matter more than one citywide number.
4. Interest Rates Still Matter
Freddie Mac reported the average 30-year fixed mortgage rate at 6.71% as of September 3.
Rates affect affordability.
Affordability affects buyer demand.
And buyer demand ultimately affects sellers too.
That's why interest rates aren't simply a "buyer problem."
They're part of the entire housing market.
So What Does All of This Mean?
I don't see today's Sioux Falls market as simply "good" or "bad."
And I don't think calling it a buyer's market or seller's market tells the whole story either.
It's a market where strategy matters.
Buyers may have opportunities to negotiate on certain properties.
Sellers can still get strong results when their home is positioned correctly.
And both sides need to understand what's happening within the specific part of the market they're operating in.
That's probably the biggest lesson from everything we've covered over the last quarter:
There isn't one Sioux Falls real estate market.
There are dozens of smaller markets operating inside it.
If you're wondering what the numbers look like specifically for your neighborhood, home or price range, I'm always happy to help you take a closer look.
