The Sioux Falls Real Estate Market Recovers Amid Some Foreclosures

With home sales on the rise, relatively few foreclosures, and after several years of limited supply and continuously rising interest rates, the real estate market in Sioux Falls, South Dakota, seems to be returning to normal.

Brandon Martens, owner of Better Homes and Gardens Real Estate, one of the region’s leading real estate agencies, and liaison for the National Association of Realtors, shared his views by saying: “We are seeing more closed sales, more pending sales, and more listings, so we can say that in the Sioux Falls area, most of our numbers are going up.”

Martens believes these trends are positive indicators for the market. He also places special emphasis on interest rates, noting that they are now higher than before, but buyers are still adapting to the new market conditions.

Martens also mentioned that although interest rates reached historic lows during the pandemic, recently they have been below the usual average, which is why, looking ahead, he sees good growth and expansion in the Sioux Falls real estate market. However, as Sioux Falls has expanded, the inventory of available homes has occasionally been a challenge.

Martens also says that while fortunately this inventory issue is beginning to resolve, one of the reasons for it is not very positive, as many of the properties coming to market are foreclosures, a process that has been on the rise after the moratorium granted during the COVID-19 pandemic ended.

However, it’s not just about foreclosures, as “despite the labor shortage, builders are still building, and there is still inventory available,” Martens said.

Another significant change in the real estate market may result from a large settlement in an antitrust lawsuit against the National Association of Realtors, a settlement amounting to just over $400 million, which will include some rule changes for agents, including commission fees and the early disclosure of the buyer’s agent commission percentage.

“Buyer representation is a mandatory part of our documentation in South Dakota,” said Martens, referring to a document that outlines the buyer’s agent’s compensation structure. “This has been a mandatory form for my 19 years, and it has existed even longer in South Dakota.” He also stated that agent commissions have always been negotiable, a point the National Association of Realtors has also argued in court.

Foreclosures available:

Sioux Falls: 85 homes available.

By Elias DaSilva | September 27, 2024