Housing Market in Sioux Falls Remains Strong
House for sale signs are popping up all over Sioux Falls, there's just one problem, they don't seem to last very long. That's a good problem to have if you're the seller and a royal pain in the butt if you're the person trying to find a home to buy.
Nationwide the housing market is booming again, and Sioux Falls is following suit. Just ask any realtor and they'll tell you business is good.
New home sales have climbed to the highest level since late 2007, and the rate of new homes being built is also going up nationwide.
Before the housing market crashed in 2007, 16,000 homes were sold in Sioux Falls. So far this year alone, more than 20,000 homes have been purchased.
Low unemployment and ridiculously low-interest rates are currently helping drive the housing market.
Before the housing bubble burst in 2007, the average interest rate for a home was in that 6% range. Rates are in the 3.5 to 4% zone right now.
You can count home builders as another group that loves the 2016 housing climate. So far this year, there has been a big demand for new construction because a lot of people are wanting to build now.
According to Dusty Rallis, owner of Rallis construction, "There's a big demand, we got shortage in labor, banks are taking a while to turn around because shortage in appraisers. It’s an interesting industry. It’s ever-evolving.”
Another sign that the housing market is red hot, Sioux Falls has already seen more homes sell this year than right before the great recession. It's definitely a seller's market. The average price of a new home is running about $40,000 more now than it did before the housing market collapsed.
Source: KSFY News