Mortgage rates have a way of dominating headlines, and over the past year, it feels like everyone has been waiting for some magic dip. But if you’ve been holding your breath for a dramatic drop, you might want to exhale. Rates haven’t been below 6% since September 2022, and despite a few tiny ups and downs, they’ve stayed pretty steady. In other words: that big swing down? It might not come anytime soon.
A Surprising Local Trend
Usually, higher rates slow down the market. Buyers back off, inventory piles up, prices slide — at least, that’s the national story. The Sioux Falls real estate market, however, seems to have missed that memo entirely.
In June, there were about 840 homes on the market in Sioux Falls. That’s almost 300 fewer than this time last year and 90 fewer than just a month earlier. Closed sales actually ticked up slightly, with 298 homes sold — a 3.1% increase year-over-year. New listings also went up a bit, but not enough to build a big surplus.
This all leaves Sioux Falls with a 3.1-month supply of homes, down from 4.8 months last summer. Translation: if you’re looking to buy, choices are slimmer, and homes are still moving despite mortgage rates remaining stagnant.
Homebuying: Why Wait?
If you’ve been sitting on the sidelines, holding out for the “perfect” rate, you’re not alone. But while the wait drags on, local buyers are scooping up homes and settling in. Even if rates eventually drop (which, let’s be honest, no one can predict with certainty), there’s a good chance there will be an uptick in homebuying competition — and higher prices — when that happens.
Instead of focusing on hitting some mythical rate target, many people are choosing to focus on what works for them right now: finding a payment they’re comfortable with, getting into a home they love, and starting to build equity. When you own a home, each payment you make helps grow your ownership stake — and over time, that equity can become one of your biggest financial assets. Rather than putting money into rent or waiting on the sidelines, you're putting it toward something that can work for you in the long run.
How a Rate Buy-Down Can Help
If the current rates make you a little queasy, we totally get it! One option more people are exploring is a rate buy-down. In simple terms, it lets you pay upfront to lower your interest rate (sometimes permanently, sometimes for the first few years). Lower rate = lower monthly payment, which can make the first few years of homeownership a lot more comfortable. It also provides a little more runway for mortgage rates to hopefully come down.
And for anyone looking at Empire Homes' new construction homes, there’s also a 3% homebuyer credit that can be used toward a rate buy-down. It’s a solid way to make today’s market work better for you without trying to outguess the future.
Looking Ahead at the Sioux Falls Market
At the end of the day, real estate isn’t about timing the market perfectly. It’s about finding a place that feels like home and fits your life (and your budget). Sioux Falls continues to show strong demand and steady activity, even when national trends suggest otherwise.
If you’re dreaming of a fall move, now is a great time to get serious. Rates may not dip soon, but that doesn’t mean you have to put your plans on hold. There are creative strategies to make it work — and when you finally unlock the door to your new place, you’ll probably be glad you focused on what felt right for you rather than waiting for a market shift that might be further away than anyone expects.