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Home Value Trends in South Dakot
By: Ashley Lichty The real estate market doesn't seem to be crashing quite as hard as industry experts and the media were predicting in 2006 - home value prices haven't plummeted and the bubble hasn't burst so much as deflated. There are still doom and gloom predictions for the state of the market, but overall, the sky hasn't fallen on real estate. When looked at on a national scale, the market has definitely come off it's boom of the past few years, but knowing the median national home value of 2006 (it's about $221,900) and rate of home sales nationwide won't help you when you're thinking of buying or selling. Real estate is an investment and obviously you want to invest somewhere that your investment is likely to grow. In order to somewhat predict how a certain area will do in real estate over a span of years, it's important to look not just into past home value and sale trends, but the economy, employment and attractions of the area itself.
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South Dakota (capital city: Pierre), is one area of the nation that has stayed relatively strong in real estate, which is little wonder with all the jobs, space and low cost of living available in a big state with a population of only 781,919 in 2006. South Dakota has strong agricultural economy of cattle, hogs, wheat, soybeans, milk and corn and industry production focused on food processing, machinery, lumber and wood products and tourism.
Unlike many states, South Dakota's factories have added jobs in each of the past three years, and service sectors have also grown, keeping its unemployment rate at a relatively low 3.4% over the past few months.
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This strong employment base along with South Dakota's various tourist draws has helped keep their real estate market steady and home value prices creeping up. South Dakota, is of course, home of perhaps the most famous and patriotic sculpture in the world: Mt. Rushmore as well as the still-under-construction Crazy Horse Memorial dedicated to Native American heroes. South Dakota is also a treasure trove of outdoor adventures, with the Badlands National Park (famous for it's moon-like landscape), the Black Hills National Forest and Caves as well as many archaeological and paleontological sites and discoveries (world famous T-Rex "Sue" was discovered in South Dakota). Even the Old West and pioneer spirit is kept alive in Deadwood, national historic landmark styled authentically after the Old West. You can spend days visiting cultural and historical landmarks, go shopping, dining and enjoy the nightlife or be adventurous with hiking, climbing, camping, fishing, boating, sailing and more in South Dakota - what ever you like, South Dakota seems to have something for everyone, a draw that pulls in many new residents!
One more major factor that has kept South Dakota's real estate market strong is its low cost of living coupled with relatively high incomes compared to median home value prices. In 2006, the median home value sales price in South Dakota was about $152,000, which was nearly $80,000 below national median home value. In 2006, South Dakota's median household income had risen above $43,000, not too far below the national median income. This high income combined with low housing costs allowed South Dakota families to afford more expensive homes.
As of now, the market in most of South Dakota is steady, with average home value sales prices in the Black Hills region steady at about $183,871 and spending an average of 71 days on the market. With a strong job market, diverse culture and landscape that attracts thousands of visitors a year and low cost of living, South Dakota's market is likely to stay strong, with homes selling within about 90 days or so of being put on the market and home value averages creeping steadily higher. |