Real estate watch not on foreclosures in south dakota

Mount Rushmore is South Dakota's claim to fame. Its bitter cold winters are another distinction and many residents of South Dakota are migrating to Sun Belt states to escape the cold. To combat this growing trend, South Dakota offered free land and tax incentives to entice newcomers.

The large cities of Sioux Falls and Rapid City are gaining population, which is evening out the loss of population in the rural counties and small towns. This growth prompted a small real estate boom and both Sioux Falls and Rapid City peaked last year as a result. But that's over for the most part and as the prices adjust the market is transforming to favor the buyers.

As the gateway to the Black Hills, Rapid City is the second largest city in the state and has seen growth for the last 5 years as more industries move in and bring economic prosperity to the area. Businesses and newcomers alike are attracted to the city's reputation of low crime and great quality of life. The south and southeast areas of the city are benefiting from new development as more residents and businesses move into the area.

Although Rapid City never really had a raging boom market like those of more populated states, the housing market was moving at a steady pace with an average of 100 to 125 homes closing a month. The median price for a single family home is $130,000 and Rapid City is projected to see prices fall 4.6% in 2007 by Housing Predictor.

Small frontier towns like Deadwood, Lead and Sturgis founded in the Gold Rush days of South Dakota make up the Black Hills. As home to many National Parks and monuments, the tourism industry plays a large role in the Black Hills economy. With a population of over 250,000 residents the small towns composing the Black Hills function as an urban area.

Just like Harney Peak the higest point east of the Rockies, the Black Hills has the highest priced housing market in the state with an average price of $188,000. It is projected to depreciate 5.7% in 2007.

Sioux Falls is located on the banks of the Big Sioux River and is the largest city in the state. Home of the largest U.S. stockyard, livestock and agriculture related businesses have been a major factor behind the cities growth. Lately the city has seen the largest commercial and residential construction growth in its history.

In Sioux Falls the median price is now $123,000. Sales of single family homes have slowed and inventory of new homes is increasing. Sioux Falls will drop 4.5% in average value in 2007.

South Dakota is the kind of place where neighbors depend on each other and in some places your nearest neighbor might be 60 miles away. Piedmont is such a place and it is a strong buyers market with only a couple dozen homes, many of which are ranches selling a month. The prices are dropping in Piedmont, and will see its median of $143,000 fall 4.9% in 2007.

Huron is one of the few small towns in South Dakota that is growing. New businesses are moving in producing more new jobs for the area. New housing developments have been constructed and the area’s future appears promising. Huron could actually see an upward rise in appreciation in 2007 and is projected to modestly appreciate 1.7% on a median price of $124,000 for the year.

 

Article Source http://www.housingpredictor.com/southdakota.html