2026 Housing Trends in Sioux Falls: What Buyers & Sellers Need to Know Now
January 2026 | Real Estate Insights — Sioux Falls Housing Market
As we step into 2026, Sioux Falls’ housing landscape is showing some interesting new shifts — ones that both buyers and sellers should pay close attention to. After years of rapid price growth and historically tight supply, the market is transitioning in ways that create new opportunities and change expectations for everyone involved.
1. More Listings, but Still a Balanced Market
In late 2025, the number of homes on the market increased compared to the previous year, meaning buyers are seeing more choices than they did during the peak of the inventory shortage. At the same time, total closed sales dipped slightly and homes stayed on the market a bit longer. Sellers are in a position where presentation and pricing matter more than ever to attract the right offer.
2. Prices Showing Stability — Not Volatility
While Sioux Falls has seen strong price growth over the past few years, recent data suggests prices are starting to level out — with median home values showing only modest increases or slight shifts year-over-year. This signals a maturing market where buyers may feel more confident that they’re making a sound long-term investment, and sellers can still capitalize on equity built over time.
3. Mortgage Rates and Buyer Affordability
One of the biggest stories for 2026 is that mortgage rates have slightly receded from recent highs — giving buyers more purchasing power and bringing some homes that were previously out of reach back into range. Lower rates combined with increased inventory could make this year a strong one for prospective homeowners who’ve been waiting on the sidelines.
4. Neighborhood Revitalization & Community Investment
Beyond sales and prices, Sioux Falls is investing in housing at the neighborhood level. The city’s Neighborhood Revitalization Program and other housing initiatives are focused on improving older homes, making neighborhoods more livable, and helping homeowners keep properties safe and sustainable long-term. These efforts don’t just improve individual homes — they help strengthen the community as a whole.
5. What This Means for Your Home Decisions
Whether you’re thinking about selling, buying, or investing in Sioux Falls in 2026, the market is shifting toward a more balanced and informed environment:
-
Buyers: More listings + improved rates = more opportunity without severe bidding wars.
-
Sellers: Staging and competitive pricing now make a significant difference in how quickly (and profitably) a home sells.
-
Investors: Neighborhood upgrades and steady demographic growth continue to support long-term value.
2026 isn’t just another year in Sioux Falls real estate — it’s a transition year, blending strong fundamentals with new market dynamics. At Home Sioux Falls, we’re here to help you navigate the experience — whether you’re selling your current property, finding your next one, or simply curious about where the market is headed.
Ready to Learn More?
Contact us today to get a personalized market analysis or to start your home journey in Sioux Falls.