It is no surprise that home sales in the Sioux Falls area have slowed in December.  With the “initial” tax credit ending in November, we saw a huge increase in the amount of sales/closings for that month.  Sioux Falls had 154 pending sales during the month – which is down 1.3% from last December.  The area finished up 2009 with 3,411 overall sales – a 6.6% increase from 2008.  The housing supply for 2009 also increased 3.8% from 2008 with 6,215 new listings this year.

Despite the increase in new listings, strong sales have helped to lower the “Months of Supply” Inventory down to 6.4%.  This is a 15.3% decline from a year ago and shows signs that the market it moving in the right direction.  Keep in mind that this is for overall inventory (all price ranges).  There are some select price ranges that still have an excess in inventory to move before those specific markets come back towards equilibrium.

Here are the detailed reports for each city: Sioux Falls, Brandon, Tea, Harrisburg, Hartford, Lennox and Valley Springs.

If you would like to see additional cities added to this monthly update, please leave a comment or send me an email.  Thanks!