Whether you're buying or selling a home or hoping to invest in real estate, understanding the local housing market conditions is non-negotiable. Things like home values, job growth, the local unemployment rate, and the area's economic projections will all impact the value and selling price of the home, as well as what the property may be worth in the future.
On many fronts, South Dakota's real estate market looks promising. Let's look closer at the South Dakota real estate market trends to expect in 2019.
Section I: 2019 Real Estate Market Forecast for South Dakota
South Dakota's housing market has been on the up and up and will likely continue this trend. Home values across the state have increased 6% in the past year and are expected to climb another 4% within the next year. South Dakota also experienced one of the biggest increases to personal income last year compared to other states, growing by 4.9% and signaling a positive turnaround to its economy.
Despite this, the real estate market has cooled somewhat in the past year as far as the demand. Reports last year indicated that the high home prices in areas like Rapid City and Sioux Falls weren't sustainable (these cities ranked near the bottom of affordable housing), which could have contributed to a slowdown in the market.
However, this could be good news for investors and buyers looking at South Dakota properties since it means less competition in the market and more room for negotiations.
Section II: When Is the Best Time to Sell a House in South Dakota in 2019?
If you're looking to sell your South Dakota home, you might be better off waiting for the summer. Summer months give you the best chance of selling your home quickly and for top dollar since you're more likely to get multiple offers during this time.
Because of its northern locale, the harsh cold weather and several feet of snow keep many buyers at home until warmer weather arrives. Not many people want to schedule a move when there's ice on the ground.
Traditionally, summer sees the most market activity. More people are looking to buy during the summer, which means your home might sit on the market for as long. Data shows that June tends to see the least number of days on the market (an average of 56 in 2018), compared to January-March when homes are on the market for an average of 100 days or more.
However, if you're not in a hurry to sell, winter could work in your favor. Because there are fewer homes on the market, you automatically have less competition. And though you won't have a huge influx of shoppers, all it takes is one interested buyer to make a deal.
Keep in mind that different markets in South Dakota experience different conditions. For example, Rapid City has shown great promise in odd months like September and December, where homes were on the market for an average of 56 days.
Minor discrepancies like these make it even more important for sellers to partner with an experienced local real estate agent that can help you time the market for an optimal outcome.
Section III: When Is the Best Time to Buy a House in South Dakota in 2019?
If you're thinking about buying a house or investment property in South Dakota, the best time to buy depends on whether you're looking for the best deal or the best home.
If you're looking for a great deal on a home, the winter might be optimal. There's not as much market activity when it's cold, often because the wintry weather slows down the process. But the median selling price tends to drop during the winter, which will work in your favor if you're determined enough.
There tends to be more inventory available during the spring and summer. If you're looking for something special, this could be your best opportunity to find it. However, keep in mind that busy times could work for or against you as far as the final selling price. Homeowners may be presented with multiple offers because the market is so busy, which means you'll need to make yours attractive enough to win the contract. However, homeowners are also facing competition from other homeowners and may be flexible in order to get their home sold.
Your agent can guide you on the best approach in your unique situation to help you achieve your home ownership goals.
Section IV: Next Steps
Whether you're buying, selling, or investing in South Dakota real estate, the first step is to partner with an experienced local real estate agent that can help you navigate the market and streamline the process.
From timing the market to creating a competitive pricing or offer strategy, your agent is an invaluable resource and gives you the best chance of coming away with an optimal outcome.
Let a Clever Partner Agent help you! Our South Dakota agents are top-rated in their local markets, offering the full service of a traditional agent but with cost-saving perks like a flat-fee commission for sellers and a home rebate for buyers.
Connect with Clever today for a no-obligation consultation!