User uShare Login | Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.

35° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options




[0] My Saved Articles
Back to all news


Find local businesses
on the KELO Pages!


Spring Housing Shortage?

October 31, 2012, 9:53 PM by Angela Kennecke

Spring Housing Shortage?

The number of homes on the market in Sioux Falls is shrinking.

Inventory levels dropped by nearly 16 percent last month. And if the trend continues, realtors are predicting a housing shortage in the spring.

Builder Chad Javers is proud of his Parade of Homes house that sold just one week after being finished.  

After surviving the recession, Javers is happy to be busy again. 

“You drive down every street and it seems like every house has either a sale pending sign on all the new construction, or they're pre-sold homes out there,” Javers said. “We're looking at starting several more specs just to be ready for spring because spring is going to be really busy.”

Javers says he can get the loans to build spec house, despite tighter lending restrictions because he has an established relationship with his bank. But the spec homes being built may not be enough.

“It's easier to get a loan for a presold home because you have a buyer lined up and we have a lot of presold homes going on and we have a lot going ourselves. Those loans are easier to do,” Javers said. “It's a spec home loan that's a lot harder to get. That's where we're going to see a shortage of homes where there are not going to be as many spec homes available as far as new construction.”

“The spec houses, there are probably going to be more of them out there in the spring but by contrast it is not going to make up for the shortage I think is going to happen in the spring," Realtor Don Welker said.

Welker says the anticipated housing shortage may motivate owners to put their homes up for sale, but they still have to have someplace to go. 

“I think it's going to be a lot more difficult come spring.  With the interest rates as low as they are, I think they are going to continue to be low for a little while and the more people are going to come into the market; especially with the way Sioux Falls is growing, I think it's going to shrink it up even more," Welker said.

If the inventory of homes on the market doesn't meet demand, you could expect to see bidding wars on houses. That’s something we haven't seen since before the recession hit.

Previous Story

Next Story




View business

You may also like

Avera To Purchase DAKOTACARE

11/19/2015 11:00 AM

With ownership, Avera would become the second-largest health insurer in the state.

Full Story
Board Of Education Member Had Multiple Contracts With State

11/23/2015 6:05 PM

That means in addition to her state salaries at USD and Northern State, Duncan earned an additional $124,000 in contracts from the Department of Educa...

Full Story | Watch
Board Of Education Member Also Has Contract With Dept. Of Ed

11/18/2015 6:00 PM

Duncan was also one of the independent evaluators for the GEAR UP program. She did that work for the University of South Dakota.

Full Story | Watch
Fired GEAR UP Worker Defends Stacy Phelps

11/24/2015 6:05 PM

When the state pulled its multi-million dollar GEAR UP contract from Mid Central Educational Co-Op in September, all the current GEAR UP workers were ...

Full Story | Watch
Black Friday Shopping Starting on Thanksgiving

11/21/2015 5:43 PM

As more stores announce their Black Friday hours, the times are getting earlier and could even cut into your Thanksgiving meal.

Full Story