Home Prices Continue to Rise

Good news for all you homeowners out there, the value of your house is on the rise.

Nationally home prices had the largest year-over-year gain in six years. 

Locally, the September housing market report that came out Friday shows strong gains for Sioux Falls. In the last year, pending sales jumped more than 15 percent. The price range with the largest gain in sales were those houses toughest to sell in the recession. Sales of homes priced $300,000 and above jumped 31 percent.

October is typically one of the best months for home sales in Sioux Falls.  In September, home sales rose by nearly seven percent. 

“People are back to work, summer vacations are over, summer projects finishing up and they're looking at putting their home on the market and people buy before the holidays," Cathie Ogdie with the Realtor Association of the Sioux Empire said.

While nationally home prices are still down 30 percent from their 2006 peak, that story never played out in Sioux Falls.  At their low in the recession, the average home price here was down by just 12 percent and has continued to go up ever since. 

“Year to date, it's pretty significant what we've seen in an increase.  Last year $166,000 was the average sale price and this year it's $180,000. I don't know that it will finish out the year at that but it's going to be close to that," Ogdie said. 

Prices could level out as more people put their homes on the market because they think they can get more for them and inventory rises.  But even if that happens, the market here is still expected to remain strong. 

"We don't really follow the same trends nationally, but good national news helps us as well," Ogdie said.

The number of new listings dropped a bit in September over the same month last year, meaning more competition for houses on the market, causing the median price to rise by 1.4 percent.

Rising prices are also helping homeowners build more equity in their homes and for some who were upside down, it's turning around.