Real Estate Update 2022: Sioux Falls Market Trends and Financing Tips

Are you planning to buy or sell a property in Sioux Falls? As a real estate broker at Century 21, I understand that you may be wondering what the future holds for the market. The year 2022 has been a rollercoaster with elections, housing prices, and interest rates going through the roof. In this blog post, I'll provide you with some insights into the Sioux Falls real estate market and share some financing tips to help you make informed decisions.

Sioux Falls Real Estate Market Trends

According to recent market trends, the Sioux Falls real estate market is experiencing a shortage of homes for sale, leading to rising home prices. However, there has been a slight increase in inventory levels, and it's a great time for buyers to make their move before the market becomes more competitive.

As per the South Dakota Association of Realtors, the median home price in Sioux Falls increased by 11.6% from $231,000 to $258,000 in 2021. The current average days on the market for homes in Sioux Falls is 37, down from 57 in 2020.

Financing Tips for Sioux Falls Real Estate

To help you navigate the financing process, I teamed up with Josh Osborne from Cross Country Mortgage. He has a great financing tip called "Three-Two-One Temporary Buy Down." It works like this: if you're putting down 10% on a $600,000 home, you can negotiate with the seller to give you a credit towards your temporary buydown. This buydown will lower your interest rate by 3% in the first year, 2% in the second year, and 1% in the third year. This strategy can save you thousands of dollars in mortgage payments for the first three years.

If rates drop, and you want to refinance later, whatever is left in the pool to cover the difference in your mortgage payment goes right back to you. It's a win-win situation, and you can contact Josh Osborne at 605-661-2526 or visit www.applywithjosh.com for more information.

In conclusion, the Sioux Falls real estate market is hot, and there's a shortage of homes for sale. However, buyers can still find excellent deals by making their move before the market becomes more competitive. With financing tips like the "Three-Two-One Temporary Buy Down," you can save thousands of dollars in mortgage payments. I hope this blog post has provided you with valuable insights into the Sioux Falls real estate market and financing options. Good luck with your real estate endeavors!