Is 2019 the year you’ll finally take the plunge and buy that first home, build your ideal space or trade up for something a little bigger? Keep an eye on housing trends in the region and nationally to know the perfect time to buy.
Here are just a few housing-market trends we’re tracking at Sioux Falls Fed.
Specifically in the South Dakota and Sioux Falls markets, sales slowed a bit during that extended winter, but the spring and early summer are more than making up for it. Home prices are starting to stabilize a bit more after a surplus of properties during winter part two—which means that affordable homes in the first-time-homebuyer range are moving fast and the competition is palpable.
One trend that Sioux Falls appears to be diverging from is the notion that millennial homebuyers are delaying the big purchase. In fact, according to a 2019 report from the Argus Leader, 2018 proved to be a big year for developers of single-family homes, with nearly 700 constructed by year’s end. That means the competition for this style of starter home is growing rapidly, so a prequalification can help you stay agile during negotiations.
Sioux Falls as a metro region appears to also be outpacing others in the area in terms of overall construction of residences. According to a recent report from SiouxFalls.Business, 2018 proved to be a big year for Sioux Falls developers, outpacing metros like Fargo, N.D.; Rochester, Minn.; and Lincoln, Neb. By more than double in issued building permits. If this trend persists in 2019, expect affordability to stay on pace with an aggressive field of buyers.
Most analysts predicted some rate volatility to return in 2018 and heading into 2019 when it came to home lending, but interest numbers have hovered at about the same level for longer than usual, making the environment much more comfortable for homebuyers to purchase. With rates, according to Realtor.com, lingering in that 4 to 4.5 percent arena, that once-predicted 5.5 percent average is less likely to pan out in 2019.If you’re ready to take advantage of competitive interest rates in this current housing market, let’s talk about how Sioux Falls Fed can help you capture a manageable mortgage in 2019.