South Dakota Housing Market Analysis - July 2024
The South Dakota housing market in July 2024 presents a nuanced picture with several key indicators showing varied trends. The median sales price for homes stands at $330,400, reflecting a modest year-over-year (YoY) increase of 0.4%. This slight uptick suggests a relatively stable market in terms of sales prices.
Conversely, the median list price has decreased by 5.9% YoY, now at $333,200. This decline indicates that sellers may be adjusting their expectations to align more closely with market conditions. The median price per square foot has risen by 1.0% YoY to $175, while the median list price per square foot has increased by 2.4% YoY to $184. These figures suggest a slight appreciation in property values on a per-square-foot basis.
In terms of market activity, the number of homes sold in July 2024 is 874, showing a minor decrease of 0.2% YoY. Pending sales have also seen a slight decline of 1.3% YoY, totaling 899. However, new listings have increased by 5.5% YoY, reaching 1,078. This rise in new listings could indicate a growing interest among homeowners to sell, possibly driven by favorable market conditions or personal circumstances.
Inventory levels have risen significantly by 10.8% YoY, now at 2,873 homes. This increase in inventory, coupled with a 30.0% YoY rise in months of supply to 3.30 months, suggests that the market is becoming more balanced, with more options available for buyers. The median days on market have also increased by 6.0% YoY to 51 days, indicating that homes are taking slightly longer to sell compared to the previous year.
The average sale to list ratio has seen a minor decline of 0.4% YoY, now at 98.5%, suggesting that homes are selling slightly below their list prices. The percentage of homes sold above list price has decreased by 3.4% YoY to 23.9%, further indicating a shift towards a more balanced market. Additionally, the percentage of price drops has increased by 4.1% YoY to 22.2%, reflecting sellers' adjustments to meet buyer expectations.
Finally, the percentage of homes going off the market within two weeks has decreased by 6.5% YoY to 34.1%. This decline suggests that homes are not selling as quickly as they were in the previous year, possibly due to the increased inventory and longer median days on market.
Overall, the South Dakota housing market in July 2024 shows signs of stabilization with modest price increases and a more balanced supply-demand dynamic. While some indicators point to a slight cooling compared to the previous year, the market remains active with a healthy level of new listings and inventory.
