What Are the Chances of Sioux Falls’ Home Prices Dropping?

It has been the ultimate good news/bad news situation.

If you've been lucky enough to sell a house in Sioux Falls in the past year or so, you have more than likely benefitted greatly from a sudden spike in the value of homes in the area, meaning more money in your pocket when you finally close the deal.

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On the flip side, the most recent stretch of time has been nothing short of a nightmare for home buyers.

Between skyrocketing prices and a record low number of houses available, there may have never been a worse time to be in the market for new digs.

So how much has pricing changed in the Sioux Falls market?

According to the latest numbers from Zillow, the average home price in South Dakota's largest city is now $296,148, which is an 18 percent jump from the spring of 2021.

That trend mirrors what's going on in the rest of the country, where the average home price ($337,560) is up nearly 21 percent from last year.

To give you some perspective on just how much things have changed in Sioux Falls in a relatively short period of time, that average price is nearly $100,000 more than just five years ago ($199,000 in March 2017) and $133,000 more than the average a decade ago ($163,000 in April 2012).

So what are the chances of our local housing prices heading back down to pre-pandemic levels sometime in the next year?

Not good according to a new Fortune report.

According to the latest information from real estate research company CoreLogic, Sioux Falls lands in the 'very low' category, which means only a 0-10% chance of a price drop in the near future.

Just a handful of markets in Oregon, Washington, Michigan, Hawaii, Connecticut, and Maine are in the 'elevated' category, which predicts a price drop probability of more than 40% in the next 12 months.