SIOUX FALLS, S.D. (KELO)–The Homebuilder’s Parade of Homes begins this weekend in the Sioux Falls area.
This year there are three feature homes all valued over $1.5 million dollars. In total, this year’s parade has eight homes listed at a million dollars or more. A look at the demand for luxury housing in Sioux Falls in tonight’s Your Money Matters.
“The last few years has been really good as far as the higher end market, it seems like there are more people out there that are looking to end their home building days with a product like this,” Top Construction owner Doug Top said.
This nearly 6,000 square foot home is the most expensive feature on this year’s parade, coming in at just over $2 million.
“These bigger homes take longer to plan,” Top said. “This house took almost two years from introduction to what you see here today.”
It’s the kind of home that was in high demand over the past two years of people moving to South Dakota.
“A lot of people relocating and bringing a lot of money coming from the east and west coasts, some of the southern states. Homes like this were something they were looking for,” Tony Bachman, a broker with Coldwell Banker Empire Realty said.
Realtor Tony Bachman says luxury home sales have slowed like the rest of the real estate market. Right now there are roughly 40 homes listed for over a million dollars in the greater Sioux Falls metro. But the right home in the right area can still sell quickly.
“We’ve seen homes over $2 million sell in a couple of weeks, but we’ve also seen some homes that maybe they’re on the market for 10 months or something like that,” Bachman said.
Top and Bachman say the housing market in this price range is slowing down a little because of rising interest rates, but for many buyers in this price range, interest rates are not a factor.
“When you have these million dollar plus homes, many people are bringing cash to the table,” Bachman said.
It’s why high-end homebuilders like Doug Top are still seeing plenty of demand for adding more of these kinds of homes to the Sioux Falls area.
“I have projects going through probably next June at this time,” Top said. “These plans can take a year to develop so it’s something that would be good to develop right away.”
The parade of homes runs this Saturday and Sunday and continues next weekend on Sept 16th and 17th.