Unless you don’t check Facebook often, or read the occasional news story, you know that Sioux Falls is experiencing low inventory. It is a seller’s market with high demand and low supply (see previous post). But exactly how low are we talking? Here are the main points when looking at the Sioux Falls Market Statistics for the first quarter of 2017, or better known as Sadie’s 5 minute math lesson.
[I will make it as painless as possible for all of you that struggle with math]
In the last three months, there were 37 houses under $100,000 sold in Sioux Falls, which means there was on average 12.3 closings per month. This 12.3 is also known as the absorption rate. There are currently 17 houses under $100,000 on the market today, which tells us we have 1.38 months of inventory (Active homes (17) divided by absorption rate (12.3) = 1.38). If not one more house came on the market, it would take 1.38 months to sell all 17. To put it in perspective, a balanced market has 5-8 months of inventory. Sioux Falls isn’t seeing those numbers until we reach the $300k-$400k range!
For the $100k-$200k price point, there were 238 homes sold in the last three months.
238(homes sold)/3 months = 79.33 homes sold per month = ABSORPTION RATE.
There are currently 51 homes on the market in Sioux Falls between $100k-$200k. If we take the absorption rate (79.33) divided by current homes on market (51), we get .64. That means we have less than one month of inventory for this price range. UNHEARD OF!
If you are thinking about being a move-up buyer, now is the time to get the most return from your first home and the best deal on a more expensive home. If you are looking at the under $200k range and thinking waiting will be better, I tell you that finding affordable homes in growing Sioux Falls will be a difficult task for the forseeable future. I will work diligently and fast so you are one of the first people to view those desirable homes. It’s going to be a rough one out there this year, but I’m up for the challenge.
[For more information about market stats in Sioux Falls or to view homes that are currently on the market, contact me through Facebook or at 605.261.8396!]