South Dakota
Housing Market
The landscape of the South Dakota's housing market evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across the Bayou State. We aim to offer real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationSouth Dakota Housing Market Overview
South Dakota housing prices have seen a 1.5% year-over-year growth as of January 2025. The median home price in the state is currently $316,200. Additionally, the number of homes sold has increased by 6.1% YoY, with 451 homes sold in January.
The median days on market provide insight into the market's competitiveness. Homes in South Dakota now spend 83 days on the market before going under contract, which is a 2-day YoY drop. This indicates lower demand and less competition for real estate in South Dakota.
What Does It Mean for Home Buyers and Sellers?
The median days on market provide insight into the market's competitiveness. Homes in South Dakota now spend 83 days on the market before going under contract, which is a 2-day YoY drop. This indicates lower demand and less competition for real estate in South Dakota.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You have more negotiation power as homes are spending a high average of 83 days on the market. Whether you're eyeing a cozy home in Sioux Falls or a rural retreat in the Black Hills, the current market conditions offer you more options and less competition. However, rising mortgage rates could impact affordability. It's crucial to shop around for financing options before you make a move.
- If You're a Seller: You can still secure a good price for your home as median prices have increased by 1.5% YoY. However, with homes spending an average of 83 days on the market, you may need to be flexible with your pricing and offer concessions to attract buyers. While the number of homes sold has risen, the market is not highly competitive at the moment. Strategic pricing and curb enhancements can help your property stand out.
South Dakota Housing Supply
The housing inventory in South Dakota is expanding, which provides more options for buyers. The number of homes for sale has increased by 15.4% YoY in January 2025, reaching 3,180 available properties. Additionally, 646 newly listed homes entered the market, reflecting an 8% increase YoY. However, the average months of supply remain at 5. While inventory is growing, it hasn't tipped the scales entirely in favor of buyers or sellers. This makes pricing and negotiation strategies crucial for the current real estate market in South Dakota.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You have an advantage with the 15.4% increase in South Dakota houses for sale, which gives you more options. The rise in inventory may also help stabilize home prices in South Dakota, making it easier to find a property within your budget. However, with the market holding at 5 months of supply, conditions remain fairly balanced. You may still face competition in desirable areas.
- If You're a Seller: You should act fast to sell your home before the rising inventory gives buyers even more choices. With homes for sale up 15.4% YoY, the heightened competition could soften demand and lead to fewer offers for you. To attract buyers, focus on competitive pricing, staging, and marketing your home on the MLS.
South Dakota Housing Demand
The percentage of homes selling above list price is a strong indicator of housing demand. When more homes sell for more than the asking price, it signals strong competition among buyers. However, a decline in this percentage suggests a shifting market with increasing supply.
In January 2025, only 12.6% of homes in South Dakota sold above list price, reflecting a 7.6-point YoY drop. On the other hand, 15.4% of listings saw price drops, up from 11% this time last year. This indicates that more and more sellers are adjusting prices to meet demand. Furthermore, the 97.4% sale-to-list price ratio shows that bidding wars are less frequent, giving buyers more negotiation power in the current market.
What Does It Mean for Home Buyers and Sellers?
In January 2025, only 12.6% of homes in South Dakota sold above list price, reflecting a 7.6-point YoY drop. On the other hand, 15.4% of listings saw price drops, up from 11% this time last year. This indicates that more and more sellers are adjusting prices to meet demand. Furthermore, the 97.4% sale-to-list price ratio shows that bidding wars are less frequent, giving buyers more negotiation power in the current market.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You have several factors working in your favor, from the rising inventory to the decline in homes selling above list price. With fewer bidding wars and more price drops, you can negotiate better with sellers and potentially secure a good deal. Additionally, the 97.4% sale-to-list price ratio suggests that sellers are more flexible, which gives you an opportunity to shop around and make competitive offers.
- If You're a Seller: In the current South Dakota housing market, patience is key, as only 12.6% of homes are selling above the list price. Under these circumstances, you may need to adjust your expectations and be flexible with pricing. However, demand could pick up in spring and summer, when buyer activity typically rises. That would be an ideal time for you to list competitively and attract offers on your South Dakota property.
Is It a Buyer's or Seller's Market in South Dakota?
Strong
Buyer
Buyer
Balanced
Seller
Strong
Seller
Buyer’s Market
Seller’s Market
Buyer: Supply exceeds demand, and homes stay listed on the market for longer, pushing sellers to offer concessions.
Is It a Buyer's or Seller's Market in South Dakota?
As of January 2025, the South Dakota housing market is leaning towards buyers, driven by rising inventory and longer days on the market. The 15.4% spike in homes for sale and 5-month supply period provide buyers with increased options and negotiation power. Additionally, only 12.6% of homes are selling above list price, which signals reduced competition among buyers. The sale-to-list price ratio of 97.4% further suggests that sellers are flexible on pricing.
However, local market trends can vary, and factors like seasonal demand and mortgage rates could impact conditions. While current trends favor buyers, spring and summer may bring increased competition, which would make timing a crucial factor for both parties.
South Dakota Housing Market Insights
The South Dakota housing market has experienced moderate growth in recent years. Home prices saw a 1.5% year-over-year increase in January 2025, while the number of homes sold rose by 6.1%. Meanwhile, housing inventory has expanded by 15.4%, providing buyers with more options. While supply is on the rise, demand remains steady, keeping the market relatively balanced.
However, with only 12.6% of homes selling above list price and a 97.4% sale-to-list price ratio, competition has weakened. This trend suggests that sellers need to price strategically, while buyers may find more room for negotiation. Looking ahead, the South Dakota real estate market is expected to remain stable, with localized variations depending on city-specific demand. If you're planning to buy or sell real estate in South Dakota, consider regional trends and seasonal fluctuations to make the most of the current market conditions.
However, with only 12.6% of homes selling above list price and a 97.4% sale-to-list price ratio, competition has weakened. This trend suggests that sellers need to price strategically, while buyers may find more room for negotiation. Looking ahead, the South Dakota real estate market is expected to remain stable, with localized variations depending on city-specific demand. If you're planning to buy or sell real estate in South Dakota, consider regional trends and seasonal fluctuations to make the most of the current market conditions.
Nationwide Migration Trends
Cost of living, climate, and job markets largely drive migration patterns across the US. The Mount Rushmore State is consistently among the top states for inbound migration. People from Minnesota, California and Nebraska flock to South Dakota in search of new houses.
The average cost of living in South Dakota is 6.2% lower than the national average. Moreover, housing costs in the state are 6.1% lower than the national average, making South Dakota one of the cheapest places to live in the US.
The average cost of living in South Dakota is 6.2% lower than the national average. Moreover, housing costs in the state are 6.1% lower than the national average, making South Dakota one of the cheapest places to live in the US.
Frequently Asked Questions
How is the housing market in South Dakota?
The state's housing market is robust despite increasing mortgage rates. Homes in South Dakota for sale are in high demand. Statewide prices rose 1.5% YoY in January 2025. Markets like Mitchell and Canton saw a significant boom in home buyers coming from other metro cities.
Which city has cheap homes for sale in South Dakota?
If you choose to move to South Dakota from expensive states like New York or California, you will pay at least 41% less to buy or rent a house. Yankton ($170K) and Aberdeen ($200K) have the lowest median home sale prices, and are among the cheapest places to live in South Dakota.
Should I wait for some time before buying houses in South Dakota?
As a buyer, you can get a fair deal now with stable prices and the growing inventory of South Dakota homes. The average home price in South Dakota is currently $316,200. If you're buying a house in South Dakota, you should first get a mortgage pre-approval. You will also need to budget for a down payment of up to 10%.
How can I list my home for sale in South Dakota?
You can list your home for sale with a Flat Fee MLS South Dakota listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in South Dakota?
The average mortgage rate for buyers in the South Dakota real estate market fluctuates between 5.98% and 6.71%. When you apply for a mortgage, make sure to check your credit score and the current mortgage rates with lenders.
What is the cost of living in South Dakota?
The cost of living in South Dakota is 6.2% lower than the US average, a factor that attracts a great number of buyers to the state. The average housing cost is also 6.1% lower than the national average, making South Dakota one of the most affordable states in the US.
Is now a good time to buy or sell a home in South Dakota?
It depends on the current trends in housing prices and inventory in your city. Sellers can benefit from high demand and rising prices. However, if mortgage rates are stable with more than 6 months of supply, it's the best time to buy a house in South Dakota.
When will South Dakota home prices drop?
As long as demand stays steady and inventory rises, prices may moderate, but a significant drop is not expected in the near future. Average home prices in South Dakota have increased by 1.5% year-over-year. While more homes are experiencing price drops, the overall market remains stable. You can check your home's fair market value with our free home value estimator to know where you stand.
When will the housing market crash in South Dakota?
As per South Dakota housing market forecasts, it's implausible that the market will crash. In fact, prices are projected to experience a sustained growth to match housing demand through 2025.
What is the South Dakota housing market forecast for 2025?
The housing market in South Dakota is expected to stabilize in 2025, with slower price growth and rising mortgage rates. Housing inventory is projected to increase enough to stabilize price growth. Supply is also expected to meet buyer demand.
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