Considering buying a new home? There’re a lot of factors to reflect upon before unlocking the doors to your new home, but buying a house is often a smart investment. Properties and houses appreciate over time and that is expected to continue as Sioux Falls becomes more metropolitan. In fact, Sioux Falls has one of the best appreciation rates in the country. Before making a checklist for buying a new home, bear in mind the trends and direction of the local housing market.
Fortunately for you, we’ve compiled a list of four Sioux Falls market trends to watch for this year.
The housing market is largely dependent on the strength of the economy. And since the stock market is continually hitting all-time highs, low mortgage rates look like they’ll stay for a little while. Nationwide, the housing inventory is rising, but unfortunately not enough to make home prices lower. Luckily in Sioux Falls, buyer demand is supported and stimulated by historically low mortgage rates. These low mortgage rates should continue to support this demand and give buyers the ability to secure a dream home in 2020.
Houses are staying on the market for an average of 79 days. This is an improvement of 4.3 percent from last year and a huge jump from the 140-day average at the start of the decade, during the mortgage crisis. The market temperature affects the time it takes to sell, so be ready if anticipating a seller’s market. With all the competition to get quality houses in prime locations, you’ll want to jump on a good deal if you see one.
Downtown properties and apartments are likely to keep steadily increasing. Over the last half of the decade, housing in downtown Sioux Falls has increased substantially. If you’re looking to find a place downtown, but haven’t found the right fit, more options are sure to pop up.
The median Sioux Falls home price is approximately $190,000, making it around $30,000 below the national average. Both owner-occupied and renter-occupied housing are expected to keep their affordability. In fact, the Sioux Falls housing market is actually a little cheaper than the average South Dakota home price of $194,000. To look at the big picture, the Sioux Falls market is a steadily appreciating and growing market with plenty of opportunity because of its affordability.
Getting familiar with these trends can help you on your way to securing your dream home. Learn more about your home loan options today at Sioux Falls Federal Credit Union.