October 12, 2026—9-10---Remodelers Show----Show 5361

((From the Blackburn Studios in Downtown Sioux Falls—Welcome to our It’s YOUR Business Show—the Remodelers Show---Show 53-61 in OUR Business Series…)))

I’m Bill Zortman and we are happy to share the Remodelers Show—with our cast of Real Estate---professionals—

   As usual---Tony Bachman---long time Realtor---has helped us bring together the cast of characters----as Sioux Falls and surrounding communities look for trends on all that is home builders---banking and much more----

   Tony---good morning to you------

1. Headline Market Performance (The Big Picture)

• Closed Sales Rebound: Closed sales increased 8.7% year-over-year in September to 349 units (bringing Year-To-Date closed sales up 0.8% to 3,380).
• Surge in Pending Contracts: Pending sales spiked 108.0% to 699 homes under contract (note: this jump is partly influenced by reporting practice updates to comply with RESO standards).
• Fresh Inventory Flowing In: New listings ticked up 2.5% to 691 homes added during September.
• Average Price Bump: The average sales price experienced a sharp 13.7% jump to $422,549.

1. Supply & Inventory Tightening

• Shrinking Active Supply: Inventory of active listings dropped 23.3% year-over-year down to 1,742 homes for sale.
• Months Supply Down to 4.2 Months: The market supply squeezed by 32.3% from 6.2 months down to 4.2 months. 
• Single-family detached homes sit at 3.7 months supply, while condos/townhomes stand at 6.5 months.
• New Construction vs. Resale Inventory: Existing-home inventory fell 25.5%, whereas new construction inventory held up relatively better, falling 16.4%

1. Pricing & Negotiation Dynamics

• Median Price Holding Steady: The median sales price for September was $339,000 (up 0.1% year-over-year).

Neil King---Todd  Boots, Cory Hjmelling, Dave Kelly, Kelly, Kelly—Jerry Beg—Joe Hanson, Craig Wynia, Teddi Mueller, Callie Wockenfuss, Jack Zika, and  among those joining us this morning---

• New Construction Premium: On a 12-month rolling basis, the median price for new construction reached $383,500 (+2.8%), compared to $320,500 (+1.7%) for previously owned homes.
• Strong List-Price Retention: Sellers received 97.0% of their original list price on average (up from 96.4% last September). New construction home sales performed even higher at 99.7% of original list price.
• Faster Pace: Average days on market until sale fell 3.3% to 87 days.

1. Macro Context & Affordability

• Interest Rate & Fed Pressure: The Federal Reserve raised its benchmark rate by 25 basis points on September 16 to a range of 3.75%–4.00%, pushing 30-year fixed mortgage rates above 7% late in the month.
• Affordability Slipping: The Housing Affordability Index fell 6.0% in September to 110 (and is down 9.0% YTD to 111), indicating tighter qualification thresholds for buyers.
• Local Market Resiliency vs. National Trend: Nationally, existing-home sales dropped 2.0% month-over-month to an annualized rate of 3.98 million. However, the Sioux Empire market demonstrated stronger localized momentum with solid closed sales gains.

1. Hot Tiers & Luxury Market Highlights

• Luxury Surge: On a 12-month rolling basis, pending sales jumped 56.0% in the $900K to $1M range and 50.6%in the $700K to $800K range.
• Fastest Moving Price Point: The $150K to $200K price range moved the fastest, averaging 82 days on market.

Core Market Strengths

• Resilient Local Demand: Closed sales rose 8.7% year-over-year in September to 349 units, outperforming national existing-home sales, which dropped 2.0%. Rolling 12-month pending sales increased 12.8% overall, driven by luxury segments like the $900K–$1M bracket (+56.0%).
• Robust Valuation & List-Price Retention: The average sales price jumped 13.7% to $422,549. Sellers retained strong bargaining power, receiving 97.0% of their original list price overall and 99.7% for new construction.
• Faster Pace of Sales: Average days on market decreased 3.3% to 87 days.

Core Market Weaknesses & Challenges

• Affordability Drag: The local Housing Affordability Index fell 6.0% in September to 110 (and is down 9.0%Year-To-Date). This squeeze is directly driven by 30-year fixed mortgage rates rising above 7.0% following the Federal Reserve's benchmark rate hike on September 16.
• Severe Supply Tightening: Active inventory shrank 23.3% down to 1,742 homes, reducing overall months supply by 32.3% to 4.2 months (and down to 3.7 months for single-family detached homes).
• Resale Inventory Deficit: Previously owned inventory experienced a steep 25.5% drop, severely limiting inventory choices for first-time buyers and lower price tiers.

----Tony we looked at a number of homes over the weekend----and as we did----we were looking at trends---one of those that we did see was plenty of features to consider----but always when looking you are comparing it to the neighborhood you are living in---as well as the people that tell you please don’t go----

With 12 weeks left in 2026-----there are a large number of homes on the market-----how do you suggest—people find one that fits their needs---their personalities---and really can be their home for the future?

----------Tony-----Callie and Jack----too------

--this is the Remodelers Show—bankers—and long-time officers—all part of our show this morning

----------glad you are as well---

9:20/00—KELO Commercials

9:21/30---Remodelers Show------

   Welcome back to the Remodelers Show----Todd Boots---Teddi Mueller----

   And----what we will see thru the end of October----and into November and December------

-----Just ahead—we’ll visit with the Kelly’s---Dave and yes Kelly-Kelly—

9:29/00—KELO Commercials

9:30/30---Fox Business News

9:32/30---Remodelers 3

  What are we seeing from those who are looking to buy—or sell---and the opportunities that are out there for those of all ages—many different incomes-----and yes those moving from across town and across the country-----

------------Dave-Kelly-Kelly----------

   How they reach you----and what you see between now and 80 or so days left in 2026?----

   Most asked questions you are getting---and what you see the interest rates going to and from----

----------The Kelly’s---------------

   Thanks for all you do----and we know our audience looked forward to you sharing your help---your different lending opportunities---- and just a friendly bankers voice or two----along our Report Card and Remodelers shows---

9:43/00—KELO Commercials

9:44/30----Remodelers Show 4

   On the first two Monday’s of the month—we do the Report Card Show and yes the Remodelers Show----with leaders---that can help you in the process----of finding a home---getting it approved----finances-----and yes the leaders help us answer a lot of questions---

   Todd Boots-----Past President---

   Steve Swenson----(handman)

   Joe Hansen----

   Neil King –what’s ahead---

   Jerry Berg-----

   Teddi Mueller---

9:53/00—KELO Commercials

9:54/30---Remodelers 5

---------what we see ahead------

-----------people moving to this area----buying---and looking for a chance to really be a-part of the community----

We have talked the numbers---the interest rates---events coming up----home builders----merchants—like the Handyman—Steve Swenson and Jerry Berg---long time friend that helps so many people—

------for now ---our time is up---thank you for yours