Home sales in the Sioux Falls area in January were down slightly from a year ago. We saw a 3.3% drop with 148 purchase agreements signed for the month. Buyer activity has slowed somewhat but this was not unexpected. We had the November mad rush to take advantage of the first tax credit – remember at this point we were not sure it would be extended. The other factor having some impact would have to be the weather or should I say the snow, snow, and more snow!
On the upside, the January median home sales price was $139,700 which is a 7.5% increase from last year. The Months Supply of Inventory in the area also dropped to an average of 5.7. This is down 19% from the level of 7.0 that we saw one year ago. The “burning off” of inventory will only lead to an improved market for everyone.
Sellers are still faced with some challenging conditions that require smart pricing, great home condition, and effective marketing.
