South Dakota’s real estate market is experiencing moderate growth and increased inventory, indicating a shift toward a more balanced environment. Here’s a comprehensive overview:
🏠 Statewide Market Overview
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Median Home Value: The average home value in South Dakota is $316,374, marking a 2.7% increase over the past year.
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Median Sale Price: As of March 2025, the median sale price was $306,333, while the median list price stood at $351,600.
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Inventory Levels: There were 2,831 homes for sale as of April 30, 2025, with 877 new listings that month.
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Days on Market: Homes typically go pending in around 20 days, indicating a relatively swift market pace.
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Sale-to-List Price Ratio: The median sale-to-list price ratio is 0.978, suggesting that homes are selling close to their listing prices.
📊 Market Dynamics
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Price Trends: Home prices have seen a modest increase, with a 0.7% year-over-year rise in April 2025, bringing the median sale price to $316,900.
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Sales Volume: The number of homes sold in April 2025 was 709, a 4.1% decrease compared to the previous year.
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Inventory Growth: The number of homes for sale increased by 9.8% year-over-year, totaling 3,927 properties.
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Market Balance: The market is transitioning toward a more balanced state, with increased inventory providing buyers with more options and reducing competition.
🌆 Regional Highlights
Sioux Falls
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Home Values: As of the third quarter of 2024, the median home value in Minnehaha County, which includes Sioux Falls, was $305,100.
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Population Growth: The Sioux Falls area has experienced population growth, contributing to sustained demand in the housing market.
Rapid City
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Market Activity: Rapid City continues to be a robust market, offering comparatively affordable options and attracting buyers seeking value.
Black Hills Region
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Unique Appeal: The Black Hills area offers unique properties that often carry a premium, influencing overall property prices in the region.
🔮 Market Outlook
South Dakota’s housing market is expected to maintain its steady growth trajectory through the remainder of 2025. The combination of rising home values and increasing inventory suggests continued competition among buyers, particularly in urban centers like Sioux Falls and Rapid City. However, the market remains relatively affordable compared to national averages, making it attractive for both first-time homebuyers and investors.