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------
 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.
 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%
 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.
 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.
 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

October 12, 2026&mdash;9-10---Remodelers Show----Show 5361
((From the Blackburn Studios in Downtown Sioux Falls&mdash;Welcome to our It&rsquo;s YOUR Business Show&mdash;the Remodelers Show---Show 53-61 in OUR Business Series&hellip;)))
&nbsp;
I&rsquo;m Bill Zortman and we are happy to share the Remodelers Show&mdash;with our cast of Real Estate---professionals&mdash;
&nbsp;
&nbsp;&nbsp; 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----
&nbsp;
&nbsp;&nbsp; Tony---good morning to you------
<ol>
<li> Headline Market Performance (The Big Picture)</li>
</ol>
<ul>
<li>Closed Sales Rebound:&nbsp;Closed sales increased&nbsp;8.7% year-over-year&nbsp;in September to&nbsp;349 units&nbsp;(bringing Year-To-Date closed sales up 0.8% to 3,380).</li>
<li>Surge in Pending Contracts:&nbsp;Pending sales spiked&nbsp;108.0%&nbsp;to&nbsp;699 homes&nbsp;under contract (note: this jump is partly influenced by reporting practice updates to comply with RESO standards).</li>
<li>Fresh Inventory Flowing In:&nbsp;New listings ticked up&nbsp;2.5%&nbsp;to&nbsp;691 homes&nbsp;added during September.</li>
<li>Average Price Bump:&nbsp;The average sales price experienced a sharp&nbsp;13.7% jump&nbsp;to&nbsp;$422,549.</li>
</ul>
<ol>
<li> Supply &amp; Inventory Tightening</li>
</ol>
<ul>
<li>Shrinking Active Supply:&nbsp;Inventory of active listings dropped&nbsp;23.3%&nbsp;year-over-year down to&nbsp;1,742 homes&nbsp;for sale.</li>
<li>Months Supply Down to 4.2 Months:&nbsp;The market supply squeezed by&nbsp;32.3%&nbsp;from 6.2 months down to&nbsp;4.2 months.&nbsp;</li>
<ul>
<li>Single-family detached homes sit at&nbsp;3.7 months supply, while condos/townhomes stand at&nbsp;6.5 months.</li>
</ul>
<li>New Construction vs. Resale Inventory:&nbsp;Existing-home inventory fell&nbsp;25.5%, whereas new construction inventory held up relatively better, falling&nbsp;16.4%</li>
</ul>
<ol>
<li> Pricing &amp; Negotiation Dynamics</li>
</ol>
<ul>
<li>Median Price Holding Steady:&nbsp;The median sales price for September was&nbsp;$339,000&nbsp;(up 0.1% year-over-year).</li>
</ul>
&nbsp;
Neil King---Todd&nbsp; Boots, Cory Hjmelling, Dave Kelly, Kelly, Kelly&mdash;Jerry Beg&mdash;Joe Hanson, Craig Wynia, Teddi Mueller, Callie Wockenfuss, Jack Zika, and &nbsp;among those joining us this morning---
&nbsp;
<ul>
<li>New Construction Premium:&nbsp;On a 12-month rolling basis, the median price for new construction reached&nbsp;$383,500&nbsp;(+2.8%), compared to&nbsp;$320,500&nbsp;(+1.7%) for previously owned homes.</li>
<li>Strong List-Price Retention:&nbsp;Sellers received&nbsp;97.0% of their original list price&nbsp;on average (up from 96.4% last September). New construction home sales performed even higher at&nbsp;99.7%&nbsp;of original list price.</li>
<li>Faster Pace:&nbsp;Average days on market until sale fell 3.3% to&nbsp;87 days.</li>
</ul>
<ol>
<li> Macro Context &amp; Affordability</li>
</ol>
<ul>
<li>Interest Rate &amp; Fed Pressure:&nbsp;The Federal Reserve raised its benchmark rate by 25 basis points on September 16 to a range of 3.75%&ndash;4.00%, pushing 30-year fixed mortgage rates above&nbsp;7%&nbsp;late in the month.</li>
<li>Affordability Slipping:&nbsp;The Housing Affordability Index fell&nbsp;6.0%&nbsp;in September to&nbsp;110&nbsp;(and is down 9.0% YTD to 111), indicating tighter qualification thresholds for buyers.</li>
<li>Local Market Resiliency vs. National Trend:&nbsp;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.</li>
</ul>
<ol>
<li> Hot Tiers &amp; Luxury Market Highlights</li>
</ol>
<ul>
<li>Luxury Surge:&nbsp;On a 12-month rolling basis, pending sales jumped&nbsp;56.0%&nbsp;in the&nbsp;$900K to $1M&nbsp;range and&nbsp;50.6%in the&nbsp;$700K to $800K&nbsp;range.</li>
<li>Fastest Moving Price Point:&nbsp;The&nbsp;$150K to $200K&nbsp;price range moved the fastest, averaging&nbsp;82 days&nbsp;on market.</li>
</ul>
Core Market Strengths
<ul>
<li>Resilient Local Demand:&nbsp;Closed sales rose&nbsp;8.7%&nbsp;year-over-year in September to&nbsp;349 units, outperforming national existing-home sales, which dropped&nbsp;2.0%. Rolling 12-month pending sales increased&nbsp;12.8%&nbsp;overall, driven by luxury segments like the&nbsp;$900K&ndash;$1M&nbsp;bracket (+56.0%).</li>
<li>Robust Valuation &amp; List-Price Retention:&nbsp;The average sales price jumped&nbsp;13.7%&nbsp;to&nbsp;$422,549. Sellers retained strong bargaining power, receiving&nbsp;97.0%&nbsp;of their original list price overall and&nbsp;99.7%&nbsp;for new construction.</li>
<li>Faster Pace of Sales:&nbsp;Average days on market decreased&nbsp;3.3%&nbsp;to&nbsp;87 days.</li>
</ul>
Core Market Weaknesses &amp; Challenges
<ul>
<li>Affordability Drag:&nbsp;The local Housing Affordability Index fell&nbsp;6.0%&nbsp;in September to&nbsp;110&nbsp;(and is down&nbsp;9.0%Year-To-Date). This squeeze is directly driven by 30-year fixed mortgage rates rising above&nbsp;7.0%&nbsp;following the Federal Reserve's benchmark rate hike on September 16.</li>
<li>Severe Supply Tightening:&nbsp;Active inventory shrank&nbsp;23.3%&nbsp;down to&nbsp;1,742 homes, reducing overall months supply by&nbsp;32.3%&nbsp;to&nbsp;4.2 months&nbsp;(and down to&nbsp;3.7 months&nbsp;for single-family detached homes).</li>
<li>Resale Inventory Deficit:&nbsp;Previously owned inventory experienced a steep&nbsp;25.5% drop, severely limiting inventory choices for first-time buyers and lower price tiers.</li>
</ul>
&nbsp;
----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&rsquo;t go----
&nbsp;
With 12 weeks left in 2026-----there are a large number of homes on the market-----how do you suggest&mdash;people find one that fits their needs---their personalities---and really can be their home for the future?
----------Tony-----Callie and Jack----too------
&nbsp;
--this is the Remodelers Show&mdash;bankers&mdash;and long-time officers&mdash;all part of our show this morning
----------glad you are as well---
&nbsp;
9:20/00&mdash;KELO Commercials
9:21/30---Remodelers Show------
&nbsp;&nbsp; Welcome back to the Remodelers Show----Todd Boots---Teddi Mueller----
&nbsp;
&nbsp;&nbsp; And----what we will see thru the end of October----and into November and December------
-----Just ahead&mdash;we&rsquo;ll visit with the Kelly&rsquo;s---Dave and yes Kelly-Kelly&mdash;
&nbsp;
9:29/00&mdash;KELO Commercials
9:30/30---Fox Business News
9:32/30---Remodelers 3
&nbsp; What are we seeing from those who are looking to buy&mdash;or sell---and the opportunities that are out there for those of all ages&mdash;many different incomes-----and yes those moving from across town and across the country-----
&nbsp;
------------Dave-Kelly-Kelly----------
&nbsp;
&nbsp;&nbsp; How they reach you----and what you see between now and 80 or so days left in 2026?----
&nbsp;&nbsp; Most asked questions you are getting---and what you see the interest rates going to and from----
----------The Kelly&rsquo;s---------------
&nbsp;
&nbsp;&nbsp; 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---
&nbsp;
9:43/00&mdash;KELO Commercials
9:44/30----Remodelers Show 4
&nbsp;&nbsp; On the first two Monday&rsquo;s of the month&mdash;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---
&nbsp;
&nbsp;&nbsp; Todd Boots-----Past President---
&nbsp;&nbsp; Steve Swenson----(handman)
&nbsp;&nbsp; Joe Hansen----
&nbsp;&nbsp; Neil King &ndash;what&rsquo;s ahead---
&nbsp;&nbsp; Jerry Berg-----
&nbsp;&nbsp; Teddi Mueller---
&nbsp;
9:53/00&mdash;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----
&nbsp;
We have talked the numbers---the interest rates---events coming up----home builders----merchants&mdash;like the Handyman&mdash;Steve Swenson and Jerry Berg---long time friend that helps so many people&mdash;
&nbsp;
------for now ---our time is up---thank you for yours

Bill Zortman brings entrepreneurs and community and state leaders together to talk about business.