At this point, I’m sure you’re all very familiar with the successes and shortcomings of the 2014 North Dakota housing market. This market was predicated with respect to its economy. South Dakota’s neighboring state to the north experienced an oil boom that (so far) kept its housing market balanced, prices high, and economic conditions prosperous for sellers. Can the same be said about the 2014 South Dakota housing market? Real estate data and market experts seemingly paint a far less glamorous picture for the 2014 South Dakota housing market versus their neighbor to the north. However, this shouldn’t be taken as indication that the situation there is dire. Although real estate prices and home values in the state remain relatively low throughout this year (along with the median household income), several positive prospects have arisen in the South Dakota market that are worth exploring.
2014 South Dakota Housing MarketNorth and South Dakota remain some on of the most rural locations in the U.S. South Dakota’s population barely exceeds 800,000 people. This figure only increased by a meager 8 percent over the past 14 years. The housing stock in South Dakota remains relatively high while the prices on these homes remain at affordable low levels. According to BestPlaces.net, the median cost of a South Dakota home currently resides right around the $158,400, mark. These homes hold an appreciation rate of only 4 percent as of 2013. As a side note, unfortunately, public schools spend less on a student in South Dakota than they do, on average, through the entire U.S. However, there are plenty of good things to consider in the 2014 South Dakota housing market when seriously considering moving.
The average time to commute is only 17 minutes. That rate sits far below the 25 minute National average.
Unemployment stands at 3.7 percent which sits far lower than the U.S. average of 6.3 percent.
The cost of living sits 2.4 percent lower than the countrywide average.
All in all, people in South Dakota don’t earn extravagant salaries. The median household, family, and per-capita income ratios sit lower than nation wide averages. But, the median value of owner-occupied homes sits lower as does the median asking price. In South Dakota, the mid-point of home asking prices stands at $37,400. The figures provided by real estate portal Zillow also corroborate with this picture: the home value index stands at $124,500 as of late September 2014 with a negative 7 percent year to year change.
The median 2014 housing price in South Dakota stands at $179,000. This price point increased at a relatively constant rate since December 2013 (when it dropped to $167,000). Prior to that point, the median price constantly rose all throughout 2013. Zillow has not released any predictions for this median listed price figure for 2015. Most real estate market analysts agree that South Dakota is bound to see more of the same through the remainder of this year and into the next: marginal, seasonal price drops in early winter, followed by trickling, yet consistent growth throughout the rest of the year.