August 10, 2026—9-10---Remodelers Show---Show 52-97

((From the BLACKBURN STUDIOS in Downtown Sioux Falls Become a Blackburn Protected HOME---

(((MUSIC—THIS OLE HOUSE)))

((((YEE HAH---I’m Bill Zortman and Welcome to our Remodelers Show—Show 52-97 In OUR ORIGINAL IT’s YOUR Business Series)))

On the First Monday of the Month—we do the Report CARD Show—and on the 2nd Tuesday----It’s the Remodelers Show---both shows—bring together leadership of the Home Builders, Realtors, Bankers, and others working Real Estate to UPDATE the market-place and what has happened and what is expected in the days and weeks ahead.

One of the organizers is Tony Bachman---Long-time Real Estate Leader and at one point my leader working real estate.

He gives us quite the overview---

The Monthly Indicators report is what we call the "dashboard." It gives you the raw vitals of the market in one shot. Based on the July 2026 Market Overview, here is the outline of the key metrics comparing this July to last, along with the Year-to-Date (YTD) trends:

1. Inventory & Supply (The Scarcity Story)

• Inventory of Homes for Sale: Fell from 2,207 to 1,644 (a 25.5% decrease).
• Months’ Supply of Inventory: Dropped from 5.9 to 3.9 months (a 33.9% decrease). 
• Expert Note: This confirms we are firmly in a seller's market, as anything under 4 months is incredibly tight.

1. Pricing Trends (The Appreciation Story)

• Median Sales Price: Increased from $333,750 to $344,900 (+3.3%). YTD is up 3.7% to $337,000.
• Average Sales Price: Increased from $378,290 to $395,370 (+4.5%). YTD is up 7.2% to $390,949.
• Pct. of Original Price Received: Held steady, moving slightly from 97.2% to 97.1% (-0.1%).

1. Market Activity (The Volume Story)

• New Listings: Increased from 742 to 813 (+9.6%). However, YTD listings are essentially flat (-0.1%).
• Pending Sales: Is up 24.3% year to date in 2026 compared to 2025
• Closed Sales: Decreased from 458 to 422 (-7.9%).
• Days on Market Until Sale: Decreased from 85 to 78 days (-8.2%).

1. Buyer Challenges ~ The Index is Slipping

• Housing Affordability Index: Dropped from 114 to 111 (-2.6%). 
• This index measures if a median income can qualify for a median-priced home; a lower number means it's getting harder for the average buyer to make the math work.

In this business, we talk about the "math" of a deal constantly, and the Housing Affordability Index is the best way to see if that math is working for the average family. When I look at these July 2026 reports, the trend is clear: the squeeze is getting tighter.

• What this means in plain English: An index of 100 means the median household income is exactly enough to qualify for a median-priced home. While we are still above 100, we are trending toward that "breakeven" point where the average person is priced out.
• The YTD Trend: Year-to-date, the index is also down 2.6%, currently sitting at 114 compared to 117 last year.

1. Rising Prices are Outpacing Budgets

Affordability is being hit from multiple angles. The Median Sales Price in the region has climbed to $344,900, which is a 3.3% increase over last July.

• New Construction Pressure: If you're looking at new builds, the "affordability wall" is even higher. New construction prices jumped 5.2% to a median of $387,000.
• Historical Context: To give you some perspective from my 15+ years of experience, the median sales price back in 2019 was only $214,000. We’ve seen a massive shift in what "entry-level" even looks like in this region.

1. The "Elevated" Factor

The reports specifically point out that elevated mortgage rates and record-high home prices are the primary drivers cooling down buyer activity nationally and locally.

• National Comparison: Locally, we are in "better" shape than the national average, where the median existing-home price hit a staggering $440,600 this month.
• The Squeeze: Even though our prices are lower than the national average, the combination of a 3.3% price hike and those higher interest rates means that for every dollar a buyer earns, less of it is going toward the principal and more is going toward just qualifying for the loan.

1. Who is Winning the Affordability Game?

If you're looking for the most "affordable" options, the data shows that Previously Owned homes remain the value play, with a median price of $323,000 compared to the much higher new construction prices.

The Bottom Line: We are seeing a slow but steady decline in the average person's ability to buy the "average" home. If the index continues to drop toward 100, we’re going to see even more buyers forced into the condo or townhome market, where the median price is a slightly more manageable $290,000.

This overview paints a picture of a market where prices are rising and homes are selling faster, even though there are fewer actual closings and dwindling inventory.

The Monthly Indicators report is what we call the "dashboard." It gives you the raw vitals of the market in one shot. Based on the July 2026 Market Overview, here is the outline of the key metrics comparing this July to last, along with the Year-to-Date (YTD) trends:

1. Inventory & Supply (The Scarcity Story)

• Inventory of Homes for Sale: Fell from 2,207 to 1,644 (a 25.5% decrease).
• Months’ Supply of Inventory: Dropped from 5.9 to 3.9 months (a 33.9% decrease). 
• Expert Note: This confirms we are firmly in a seller's market, as anything under 4 months is incredibly tight.

1. Pricing Trends (The Appreciation Story)

• Median Sales Price: Increased from $333,750 to $344,900 (+3.3%). YTD is up 3.7% to $337,000.
• Average Sales Price: Increased from $378,290 to $395,370 (+4.5%). YTD is up 7.2% to $390,949.
• Pct. of Original Price Received: Held steady, moving slightly from 97.2% to 97.1% (-0.1%).

1. Market Activity (The Volume Story)

• New Listings: Increased from 742 to 813 (+9.6%). However, YTD listings are essentially flat (-0.1%).
• Pending Sales: Is up 24.3% year to date in 2026 compared to 2025
• Closed Sales: Decreased from 458 to 422 (-7.9%).
• Days on Market Until Sale: Decreased from 85 to 78 days (-8.2%).

1. Buyer Challenges ~ The Index is Slipping

• Housing Affordability Index: Dropped from 114 to 111 (-2.6%). 
• This index measures if a median income can qualify for a median-priced home; a lower number means it's getting harder for the average buyer to make the math work.

In this business, we talk about the "math" of a deal constantly, and the Housing Affordability Index is the best way to see if that math is working for the average family. When I look at these July 2026 reports, the trend is clear: the squeeze is getting tighter.

• What this means in plain English: An index of 100 means the median household income is exactly enough to qualify for a median-priced home. While we are still above 100, we are trending toward that "breakeven" point where the average person is priced out.
• The YTD Trend: Year-to-date, the index is also down 2.6%, currently sitting at 114 compared to 117 last year.

1. Rising Prices are Outpacing Budgets

Affordability is being hit from multiple angles. The Median Sales Price in the region has climbed to $344,900, which is a 3.3% increase over last July.

• New Construction Pressure: If you're looking at new builds, the "affordability wall" is even higher. New construction prices jumped 5.2% to a median of $387,000.
• Historical Context: To give you some perspective from my 15+ years of experience, the median sales price back in 2019 was only $214,000. We’ve seen a massive shift in what "entry-level" even looks like in this region.

1. The "Elevated" Factor

The reports specifically point out that elevated mortgage rates and record-high home prices are the primary drivers cooling down buyer activity nationally and locally.

• National Comparison: Locally, we are in "better" shape than the national average, where the median existing-home price hit a staggering $440,600 this month.
• The Squeeze: Even though our prices are lower than the national average, the combination of a 3.3% price hike and those higher interest rates means that for every dollar a buyer earns, less of it is going toward the principal and more is going toward just qualifying for the loan.

1. Who is Winning the Affordability Game?

If you're looking for the most "affordable" options, the data shows that Previously Owned homes remain the value play, with a median price of $323,000 compared to the much higher new construction prices.

The Bottom Line: We are seeing a slow but steady decline in the average person's ability to buy the "average" home. If the index continues to drop toward 100, we’re going to see even more buyers forced into the condo or townhome market, where the median price is a slightly more manageable $290,000.

This overview paints a picture of a market where prices are rising and homes are selling faster, even though there are fewer actual closings and dwindling inventory.

Neil King posts the numbers each month---and understands the trends on where we are---and what our future months may hold---

Teddi Mueller---leads the Home Builders Association and knows where they have been and where they are going---

Two of the leaders Callie Wockenfuss and Jack Zika are organization leaders---

Dave Kelly and his wife Kelly Kelly---give us the banking trends where we have been—where we are going ---and what you might see if you were selling.

Todd Boots—is a Former President of the South Dakota Home Builders Association

From the Retail side we hear from Steve Swenson---the Handyman---Jerry Berg—Intek---Craig Wynia—Redrock Builders Association—Janelle Cain---Piedgree Management---as well as others.

We invite these real estate leaders together the first two Monday’s of the month----and from what we hear from our audiences---it is good information -if you are in the circle buying-selling-building—or looking for what is the best to do----

--------where are we for the year----what should you do if you are financing, buying or selling, building---or you pick it—these leaders can help---and they are good at what they do---and how they do it.

Our next Report Card Show will be on the week from September 8 to the 14th---the Remodelers Show is scheduled for September 21st.

If you have questions for those in the show—feel free to listen—call-write or go see them. Housing is important---if you are in the market—make sure you listen---get the best advise possible---and act.

Our It’s YOUR Business Show has been on the air for more than a dozen years----it’s popular---brings leaders together—and our listeners are the winners.