A Sellers' Market?
February 24, 2012, 9:50 PM
SIOUX FALLS, SD -
Even though the Sioux Falls housing market hasn't dipped as low as other places across the nation, the crash of 2007 to 2008 still sent prices down between 15 and 20 percent.
But one local realtor says that's turning around and we may be entering a sellers' market.
Nikkee and Dustin Rhody put their home on the market this week.
"We need more space. We've been in this house seven years and our family started to out grow that," Nikkee Rhody said.
Their own personal economy played a big role in the reason they're listing now.
"I think we're each to a point now where we are feeling a lot more secure in our jobs as well as the economy and local economy more specifically," Dustin Rhody said.
And their timing may be perfect because homes in this price range aren't as plentiful as they used to be.
"The fact that it listed on Tuesday, had a showing on Tuesday and our first offer on Tuesday was extremely surprising," Nikkee Rhody said.
"Right now the trend for the $150,000 to $300,000 market is definitely moving towards the balanced market or sellers' market," Realtor Tony Ratchford said.
Realtor Tony Ratchford, who has seen the market highs and lows for more than 30 years, says the supply of homes on the market is the biggest indicator in this price range.
"The last four or five years we've had 10 months, 12 months, even 20 to 30 months in some price ranges. Now we're getting down into an area where it's almost balanced for some particular price ranges," Ratchford said.
The Rhodys noticed the lack of supply when they started looking for their next home.
"We had done a little research prior to going in and contacting realtors and not disappointed, but just surprised by the lack of inventory," Dustin Rhody said.
"We looked at a few, but there wasn't anything there that worked for us," Nikkee Rhody said.
That prompted the Rhodys to build a new home. It's the lack of building in the last few years, along with strong job growth in the area that is turning the housing market around.
"Less supply more demand, without a doubt, always raises prices," Ratchford said.
Ratchford says there are certain price ranges that still have excess inventory. Surprisingly enough, the high-end home, those $700,000 or more is not one of them.
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