It’s been a crazy year for the real estate market in Sioux Falls, with buyers facing major inventory shortages, even at some of the highest price ranges.
“When it comes to the million dollar homes, the inventory is down right now, down about 33 percent,” Anne Nelson, the President-Elect of the Realtors Association of the Sioux Empire said.
Just like the rest of the real estate industry in Sioux Falls, there’s low availability in this luxury price range.
“There are a lot of homes above a million dollars today,” Keller Williams Luxury division realtor Tony Ratchford said.
But how many Sioux Falls homes now fall into this category may surprise you.
“More homes that maybe wouldn’t have been a million dollar home last year or definitely two years ago, have reached that point today,” Nelson said.
The low inventory has seen home values soar roughly 20 percent.
“We’re seeing that $600,000-$700,0000 push to $800,000 now and certainly the $800,000-$900,000 now is pushed over the million dollar mark,” Ratchford said.
While historically selling a home in this price range could take a while…
“It was pretty common for a million dollar house to maybe take year,” Ratchford said.
This spring, some of those million dollar homes are selling fast.
“This one we brought on the market on a Friday and we had a purchase agreement by Friday afternoon,” Ratchford said.
Buyers new to the Sioux Falls market are accounting for some of the quick million dollar and above home sales.
“Both of the last two houses we sold, are from out of towners,” Ratchford said.
But with a low inventory of current luxury homes to choose from, other buyers are building their own.
“Our Sioux Empire builders, a good number of them are building those million dollar homes,” Nelson said.
“It takes a long time to build a house like this, sometimes a year, year and a half or two years and that holds them up,” Ratchford said.
Last year there were 21 home sales above a million dollars; in the first four months of this year, 10 homes have already sold or gone under contract in that price range. The highest home sale so far in 2021 is $1.98 million.