Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.
Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest Existing Home Sales Report which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there's one big challenge.
Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months' supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say:
"The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low."
Earlier this month, realtor.com released their inventory data for January. It helps confirm this point. Here's a graph comparing inventory levels for January over the last six years:
As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don't stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that:
"Seventy-nine percent of homes sold in January 2022 were on the market for less than a month."
Odeta Kushi, Deputy Chief Economist at First American, explains it like this:
"A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales & lower inventory. Many resale transactions are happening so quickly that they 'flow' in & then out of the 'stock' between the fixed monthly measurement of inventory."
Anyone thinking of putting their home on the market shouldn't wait. A seller will always negotiate the best deal when demand is high and supply is limited. That's exactly the situation in the real estate market today.
Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.
In addition, Len Kiefer, Deputy Chief Economist at Freddie Mac, says:
"Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006."
As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now. Don't wait for that increase in competition in your area. If you want to sell in 2022 and are ready to start the process, today is the day to list your house.
If you're ready to sell, let's connect to get your house on the market while today's inventory situation is in your favor.
Recently, the Sioux Metro Growth Alliance and Sioux Falls Simplified teamed up to craft a roundup of great shops to visit in the greater Sioux Falls area to help you check off all of your Christmas shopping to-dos. We loved this article - and the shops featured inside it! - so we're sharing a peek at it with you today on our blog.
Here's an excerpt from the article, which you can read in full by clicking here and visiting Sioux Falls Simplified:
'Tis the season for holiday shopping, and it's not hard to find something for everyone without leaving the metro area. Here's a gift guide that'll help you spend local while crossing everyone off your shopping list.
Why it Matters:
In case you're new around here, many members of the Dave & Co. Real Estate Team call Hartford "home," so the annual Hartford Hometown Christmas event is always a fun one for our team! This year's event took place last week, and from the meals, games for the kids, and gingerbread houses to the parade of lights and a sighting of Santa Claus and Mrs. Claus, the event was a perfect way to welcome the holiday season.
This event takes SO much planning and volunteer work, as well as contributions from businesses to make it a success, and year #10 of this event was memorable for all who attended!
As a bonus this year, the Dave & Co. Real Estate Team won the Spirit of Hartford award! We're so honored. Our float in the parade was based on this theme: "America's Hometown Heroes - Keeping You Warm on Frosty Nights" and included a beautiful fireplace designed by Kim Kramer, a client and friend.
Here are a few photos from the event:
The holiday season is nearly upon us, and if you're gearing up to host family and friends from near and far this season, we've got a roundup of helpful holiday hosting tips, just for you!
At Dave & Co., we mark Veteran's Day by honoring our team members who have served and who continue to serve our country. Dedication to service is the foundation of who we are and what we do, both in life and in business, and today, we wanted to recognize the servicemen and servicewomen that make up the Dave & Co. Real Estate Team.
David J. Larson
Years of Service: 25 Years
Favorite Part of Serving: The South Dakota Army National Guard and the United States Army is a family, not a job. Also, this quote really captures the way I feel about the opportunity to serve: "There is no exercise better for the heart than reaching down and lifting people up."
Favorite Memory: Fridays in the Muslim culture was what our Sunday is, so we didn't leave base. Every Thursday night, we were served spaghetti in the chow hall. I would get a huge plate of spaghetti and a big bowl of ice cream and settle in for a long night's rest.
Rank: Command Sergeant Major
Branch: Army National Guard
Years of Service: 35 Years
Favorite Part of Serving: I always enjoyed taking care of soldiers, solving many different problems, and helping people.
Favorite Memory: I ran a marathon in Suriname while I was there discussing recruitment.
Rank: Master Sergeant/E-7
AFSC: Bioenvironmental Engineering Technician
Branch: Air National Guard
Years of Service: 14 Years
Favorite Part of Serving: The people that you work with over the years and the experiences you share make you become more like family. Also, I am the third generation to serve in the Air National Guard, and I serve along side my husband, Bret.
Favorite Memory: When in Suriname, we had a day off to explore – our group decided to go ziplining and kayak the Suriname River. Ziplining was an experience is itself…I have ziplined a handful of times and knew the routine, but in Suriname, we were handed a leather glove to stop ourselves…very primitive. The cables were secured into trees by wrapping them around the tree multiple times and then screwed through wooden blocks into trees. During the longest zip, we went over the Suriname River. Being in a remote rainforest this high up in the trees, zipping over a river was incredible.
After ziplining, we went kayaking up the river with a guide. Only a few minutes into kayaking, the guide made it clear that we were not to touch the water with our hands or feet because it is filled with piranhas. I felt like we got told this information was too late as we had just gone on a sketchy zip over this water and were now in the middle of this river. About 20 minutes into the kayak adventure, it started to downpour rain. The large drops bouncing off the river is one of the most beautiful things I have ever experienced - it was something that just can't ever be replicated.
Bradley S. Miles
Branch: Army National Guard
Years of Service: 9 Years
Favorite Part of Serving: The people that I've met and served with are my favorite part of military service.
Favorite Memory: During my 2nd deployment overseas, I represented the 147th Batallion at the home run derby that was held on the base.
Steven T. Skinner
Branch: Army; I'm a full-time employee of South Dakota Army National Guard, where I currently serve in a Field Artillery unit as a Training Officer
Years of Service: 12 Years
Favorite Part of Serving: I enjoy how dedicated everyone is to the mission. The tasks that a unit can accomplish are incredible, and when you put in the time, make a good plan, and everyone works together to accomplish the goal, it's awesome. The bonds and camaraderie that are created through this process are never-ending and have resulted in lifelong friendships for me.
Thank you to ALL of our team members who have served, and a special thank you to all of our clients, past and present, who have served or continue to serve the United States of America! We are grateful for you.
If you've been following the Dave & Co. Real Estate Team for a while, you know our heart for military servicemembers, past and present. And this holiday season, we're lifting up veterans in our area by running a Veterans Drive, with all proceeds going to veterans right here at the Sioux Falls VA Medical Center!
Please see the graphic below to learn about the items that our veterans need, and if you'd like to drop off donated items, the locations are listed in the graphic as well. BONUS: If you're an avid Amazon shopper, add a few items to your cart from our wish list here!
Thank you for thinking of veterans this season and always!
Today on the Dave & Co. Real Estate Team blog, we're excited to share a roundup of our favorite family-friendly activities to do in the greater Sioux Falls area this fall!
Heartland Country Corn Maze: If you're looking for classic fall fun, look no further than the Heartland Country Corn Maze, located near Harrisburg, SD. This year, the corn has been carved away in the shape of a lion and offers 11 acres of fun for kids and families alike!
Open Friday-Sunday only in August, September and October; admission for adults is $8.00, children ages 5-10 is $5.00, and children ages 4 and under are free!
The Harvest Pumpkin Patch: Head out to Lennox for a pumpkin patch experience! The Harvest offers a wide variety of pumpkins, including gourds, and also has farm staples like squash, potatoes, and onions available for purchase. A hint: head to The Harvest on Fridays or Saturdays to peruse antiques and collectibles, too!
Open Monday-Saturday, 9AM to 6PM; located at 27781 HWY 17 in Lennox
Country Apple Orchard: If it's apples you desire, head out to Harrisburg and visit The Country Apple Orchard! Under new ownership this year, the orchard has many new activities and attractions for families, including zip lines, an apple cannon range, pony rides, a giant hay maze, two 90ft jumping pillows, a petting zoo, and a 120ft long corn pit! One crowd-pleaser for parents: the Country Apple Beer Garden!
Open Friday-Sunday only in September and October; admission is $13/person, and children under 35" are free!
Strawbale Winery Harvest Festival: Strawbale Winery, just outside of Renner, is planning its annual Harvest Festival for the second Saturday in October (Oct. 9). Join the folks at Strawbale for food, wine, live music, games, and fun from 11am to 5PM. Paint pumpkins or play a game of bean bag toss with the kids! No pets or outside food/beverages, please.
This event is FREE!
Our team hopes that you and yours enjoy the fall season's best family activities!
We have some fun news to share with you today, and if you're local to Hartford, you might already know: Dave and Amy are the newest co-owners of Hartford's very own Buffalo Ridge Brewing! Located at 102 N. Main in downtown Hartford, Buffalo Ridge Brewing has played a role in blossoming the downtown area of town. Families are welcome to enjoy the space, which can also be rented for smaller functions, such as bridal showers, birthday parties, and graduation parties (though Buffalo Ridge is completely booked for graduations in the spring of 2022!).
Let's dive into a few FAQs with Dave and Amy!
Q: How did this opportunity to become co-owners of Buffalo Ridge Brewing come about?
A: Dave went to high school with Chris Tuschen, who is one of the main brewers at Buffalo Ridge, and Amy went to college with Chris! We knew and supported Chris and his wife, Callie, when they brought the brewery to town, and when they approached us with the opportunity to become part owners, we jumped at the chance.
We're community-oriented people, and Buffalo Ridge Brewing has a great community feel, which made investing in co-ownership feel like a natural fit for us.
Q: What are your roles at the brewery?
A: Dave mostly assists with outside sales and works with the distributor to encourage other bars and restaurants to carry our craft beers on tap. Amy assists in the taproom and is a set of eager helping hands for other needs as they arise, too.
Q: What are your favorite craft brews at Buffalo Ridge?
A: Out of the 18 different beers on tap at all times, it's hard to choose! Dave loves the Oaksville Amber and the Marzen-style Oktoberfest. Amy's favorite is Currantly Trending, a sour, fruited beer that, to her, is the perfect marriage of the tastes of wine and beer!
Come visit us at Buffalo Ridge Brewing!