South Dakota Housing Market Analysis - August 2024

The South Dakota housing market in August 2024 presents a complex landscape with varying trends across different metrics. While some indicators show a decline, others suggest a more positive outlook.

The Median Sales Price for homes in South Dakota stands at $321,600, reflecting a year-over-year (YoY) decrease of 1.6%. Similarly, the Median List Price is $327,800, down by 0.3% YoY. Despite these declines, the median Price Per Square Foot has increased by 2.0% YoY to $177, and the Median List Price per square foot has also risen by 2.0% YoY to $181. This indicates that while overall prices have slightly decreased, the value per square foot has appreciated.

In terms of sales activity, 897 homes were sold in August, marking a slight YoY decline of 0.2%. Pending Sales have seen a more significant drop of 5.8% YoY, totaling 923. However, New Listings have increased by 4.3% YoY, reaching 1,091. Inventory levels have also risen substantially by 12.5% YoY, now at 2,994 homes. The Months of Supply, a critical indicator of market balance, has surged by 30.0% YoY to 3.3 months, suggesting a shift towards a more buyer-friendly market.

The Median Days on Market for homes in South Dakota is now 56 days, an 8.0% increase YoY. This longer duration indicates that homes are taking more time to sell compared to the previous year. The average sale to list ratio is 98.1%, down by 0.5% YoY, showing that homes are selling slightly below their list prices. Additionally, the percentage of Homes Sold above list price has dropped by 8.2% YoY to 16.6%, further emphasizing the cooling market conditions.

Price Drops have become more common, with 22.1% of listings experiencing a reduction, up by 2.1% YoY. The percentage of homes going off the market within two weeks has decreased by 2.3% YoY to 31.8%, indicating a slower pace of transactions.

In summary, the South Dakota housing market in August 2024 is characterized by a mix of declining prices and increased inventory, alongside a slower sales pace. While the value per square foot has appreciated, overall market conditions suggest a shift towards a more balanced or even buyer-favorable environment.