Sioux Falls Housing Market: The Big Picture and The Little Details Jeff Allen Director of Research Services [email_address...
Today <ul><li>Recent History of Sioux Falls Real Estate </li></ul><ul><li>Group Discussion:  Consumer Challenges and Misco...
Today II <ul><li>4. Show, Don’t Tell: Using Market Statistics Intelligently with Clients </li></ul><ul><li>5. Group Discus...
Introduction: Supply and Demand <ul><li>The guiding law of how markets operate. </li></ul><ul><li>The balance of supply an...
“ Sellers Market” <ul><li>Low supply, high demand </li></ul><ul><li>Seller advantage </li></ul><ul><li>Growing prices </li...
“ Buyers Market” <ul><li>High supply, low demand </li></ul><ul><li>Buyer advantage </li></ul><ul><li>Flat or declining pri...
“ Balanced Market” <ul><li>Neither side has a market-wide advantage </li></ul><ul><li>Price growth and market times in lin...
Recent History:  Gradually Shifting to Buyer’s Market
Gradually Shifting to Buyer’s Market
Gradually Shifting to Buyer’s Market
Gradually Shifting to Buyer’s Market
Prices Softening
Tougher Conditions for Sellers
Tougher Conditions for Sellers
Recent Surge in Home Sales
Small Group Discussion <ul><li>What are the biggest challenges or misconceptions you face with today’s  buyers? </li></ul>...
Show, Don’t Tell Using market statistics intelligently with clients
Show, Don’t Tell <ul><li>Statistics aren’t numbers,  they’re stories. </li></ul><ul><li>Don’t be scared. </li></ul>
Show, Don’t Tell <ul><li>Statistics are more important  now than ever. </li></ul><ul><li>Unique market conditions </li></u...
Show, Don’t Tell <ul><li>Provide knowledge at the expense of salesmanship. </li></ul><ul><li>It’s not always a good time t...
Show, Don’t Tell <ul><li>Use proof to back up your claims. </li></ul><ul><li>RASE market reports give independent third-pa...
Show, Don’t Tell: RASE Market Reports
Small Group Discussion You’re making a listing presentation to a seller. They believe their house is worth far more than y...
The Future of Sioux Falls Real Estate <ul><li>Beyond 2009, the crystal ball is hard to read. </li></ul><ul><li>Sales are u...
First-Time Home Buyer Tax Credit
First-Time Home Buyer Tax Credit Q: What will happen when the tax credit expires? + 52.6% 119 78 First-Time Buyers - 29.9%...
First-Time Home Buyer Tax Credit
Areas With Heavy First-Time Buyer Sales
Extension/Expansion of Tax Credit <ul><li>The sequel won’t be as effective as the original </li></ul><ul><li>Sell-forward ...
Inefficient Use of Government Funds? <ul><li>From “Help May Bring Another Bubble”  Las Vegas Sun, 9.22.09 </li></ul><ul><l...
Positive News:  Improved Housing Affordability
Positive News:  Relatively Few Foreclosures *Source: RealtyTrac 234 Michigan 5 150 Arizona 4 144 California 3 140 Florida ...
Positive News:  Relatively Few Foreclosures *Source: RealtyTrac 234 Michigan 5 3,027 South Dakota 44 150 Arizona 4 144 Cal...
Takeaway:  the foreclosure crisis hasn’t and won’t hit Sioux Falls as hard as the rest of the country. But more are coming...
Positive News:  Relatively Healthy Job Outlook Trivia Question: What two states are the Top 5 healthiest regions for emplo...
Positive News:  Relatively Healthy Job Outlook 4.6 Grand Forks, ND 5 4.5 Sioux Falls, SD 4 4.2 Rapid City, SD 3 4.2 Fargo,...
Positive News:  Relatively Healthy Job Outlook
Positive News:  Relatively Healthy Job Outlook
Positive News:  Relatively Healthy Population Growth
Positive News:  Relatively Healthy Job Outlook  & Population Growth Takeaway:  Sioux Falls is weathering the recession bet...
Sioux Falls Outlook Summary Sales are likely to dip down again in 2010 Buyer’s market into foreseeable future, especially ...
Sioux Falls Outlook Summary The only constant is change. Stay on top of Sioux Falls housing market trends using RASE marke...
Sioux Falls Housing Market: The Big Picture and The Little Details Jeff Allen Director of Research Services [email_address...
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Sioux Falls Housing Market

  1. 1. Sioux Falls Housing Market: The Big Picture and The Little Details Jeff Allen Director of Research Services [email_address]
  2. 2. Today <ul><li>Recent History of Sioux Falls Real Estate </li></ul><ul><li>Group Discussion: Consumer Challenges and Misconceptions </li></ul><ul><li>Break </li></ul>
  3. 3. Today II <ul><li>4. Show, Don’t Tell: Using Market Statistics Intelligently with Clients </li></ul><ul><li>5. Group Discussion: The Uncooperative Seller Scenario </li></ul><ul><li>6. The Future of Sioux Falls Real Estate </li></ul>
  4. 4. Introduction: Supply and Demand <ul><li>The guiding law of how markets operate. </li></ul><ul><li>The balance of supply and demand affects everything. </li></ul>
  5. 5. “ Sellers Market” <ul><li>Low supply, high demand </li></ul><ul><li>Seller advantage </li></ul><ul><li>Growing prices </li></ul><ul><li>Quick sales </li></ul>
  6. 6. “ Buyers Market” <ul><li>High supply, low demand </li></ul><ul><li>Buyer advantage </li></ul><ul><li>Flat or declining prices </li></ul><ul><li>Longer market time </li></ul>
  7. 7. “ Balanced Market” <ul><li>Neither side has a market-wide advantage </li></ul><ul><li>Price growth and market times in line with historical norms </li></ul>
  8. 8. Recent History: Gradually Shifting to Buyer’s Market
  9. 9. Gradually Shifting to Buyer’s Market
  10. 10. Gradually Shifting to Buyer’s Market
  11. 11. Gradually Shifting to Buyer’s Market
  12. 12. Prices Softening
  13. 13. Tougher Conditions for Sellers
  14. 14. Tougher Conditions for Sellers
  15. 15. Recent Surge in Home Sales
  16. 16. Small Group Discussion <ul><li>What are the biggest challenges or misconceptions you face with today’s buyers? </li></ul><ul><li>What are the biggest challenges or misconceptions you face with today’s sellers? </li></ul>
  17. 17. Show, Don’t Tell Using market statistics intelligently with clients
  18. 18. Show, Don’t Tell <ul><li>Statistics aren’t numbers, they’re stories. </li></ul><ul><li>Don’t be scared. </li></ul>
  19. 19. Show, Don’t Tell <ul><li>Statistics are more important now than ever. </li></ul><ul><li>Unique market conditions </li></ul><ul><li>Consumers have far more information </li></ul>
  20. 20. Show, Don’t Tell <ul><li>Provide knowledge at the expense of salesmanship. </li></ul><ul><li>It’s not always a good time to buy or sell. Tell a consumer that and you have their loyalty for life. </li></ul>
  21. 21. Show, Don’t Tell <ul><li>Use proof to back up your claims. </li></ul><ul><li>RASE market reports give independent third-party verification. </li></ul>
  22. 22. Show, Don’t Tell: RASE Market Reports
  23. 23. Small Group Discussion You’re making a listing presentation to a seller. They believe their house is worth far more than you do. How would you make your case? Use statistics from the Monthly Indicators Report, but what else would you say?
  24. 24. The Future of Sioux Falls Real Estate <ul><li>Beyond 2009, the crystal ball is hard to read. </li></ul><ul><li>Sales are up, but some of the incentives driving the recent surge are temporary: </li></ul><ul><li>Historically low mortgage rates </li></ul><ul><li>$8,000 Tax Credit for 1 st Time Buyers </li></ul>
  25. 25. First-Time Home Buyer Tax Credit
  26. 26. First-Time Home Buyer Tax Credit Q: What will happen when the tax credit expires? + 52.6% 119 78 First-Time Buyers - 29.9% 171 August 2009 244 August 2008 All Other Buyers
  27. 27. First-Time Home Buyer Tax Credit
  28. 28. Areas With Heavy First-Time Buyer Sales
  29. 29. Extension/Expansion of Tax Credit <ul><li>The sequel won’t be as effective as the original </li></ul><ul><li>Sell-forward effect </li></ul>
  30. 30. Inefficient Use of Government Funds? <ul><li>From “Help May Bring Another Bubble” Las Vegas Sun, 9.22.09 </li></ul><ul><li>“ We paid $8,000 to at least 1.5 million people to do something they were going to do anyway,” Jakabovics says. ... The tax break, due to expire at the end of November, is on track to cost $15 billion, twice what Congress had planned. In other words, it will cost $43,000 for every new homebuyer who would not have bought a house without the tax break. </li></ul>
  31. 31. Positive News: Improved Housing Affordability
  32. 32. Positive News: Relatively Few Foreclosures *Source: RealtyTrac 234 Michigan 5 150 Arizona 4 144 California 3 140 Florida 2 62 Nevada 1 Housing Units Per Foreclosure
  33. 33. Positive News: Relatively Few Foreclosures *Source: RealtyTrac 234 Michigan 5 3,027 South Dakota 44 150 Arizona 4 144 California 3 140 Florida 2 62 Nevada 1 Housing Units Per Foreclosure
  34. 34. Takeaway: the foreclosure crisis hasn’t and won’t hit Sioux Falls as hard as the rest of the country. But more are coming down the pipeline. Positive News: Relatively Few Foreclosures
  35. 35. Positive News: Relatively Healthy Job Outlook Trivia Question: What two states are the Top 5 healthiest regions for employment located in?
  36. 36. Positive News: Relatively Healthy Job Outlook 4.6 Grand Forks, ND 5 4.5 Sioux Falls, SD 4 4.2 Rapid City, SD 3 4.2 Fargo, ND 2 3.1 Bismark, ND 1 Current Unemployment Rate
  37. 37. Positive News: Relatively Healthy Job Outlook
  38. 38. Positive News: Relatively Healthy Job Outlook
  39. 39. Positive News: Relatively Healthy Population Growth
  40. 40. Positive News: Relatively Healthy Job Outlook & Population Growth Takeaway: Sioux Falls is weathering the recession better than most regions in the country and is growing. This bodes well for housing demand.
  41. 41. Sioux Falls Outlook Summary Sales are likely to dip down again in 2010 Buyer’s market into foreseeable future, especially in higher price ranges Pending sales up for 3 consecutive months Housing affordability up dramatically Relatively few foreclosures Healthy Job Outlook and Population Growth In sum: optimistic long-term outlook.
  42. 42. Sioux Falls Outlook Summary The only constant is change. Stay on top of Sioux Falls housing market trends using RASE market tools: www.rase-inc.org
  43. 43. Sioux Falls Housing Market: The Big Picture and The Little Details Jeff Allen Director of Research Services [email_address]
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