Real Estate in the Sioux Empire is as strong as it been since the mid-1980’s; and it is real. This is not because of governmental manipulation, as it was in the early 2000’s, but with real buyers and real money. It is Free Market activity as it should be where buyers and sellers are establishing true market value without outside stimulus.
Fiscal and monetary policies, along with fewer regulations and solid employment, are working together to drive the economy. Seldom do we see a strong economy without seeing solid growth in new construction and a high level of real estate activity. One might argue which one comes first; but we know it takes employment and income plus consumer confidence for a real estate market to excel.
A curious question to ask is, how long will this last? Real estate sales today are up about 8% over last year and prices are up 5%. It appears this pace can continue for some time; providing present government policies and low mortgage rates stay in place.
Covid-19 mandates have disrupted the market to some degree throughout the world, but thankfully most businesses stayed open in Sioux Falls, people kept their jobs, and consumers are spending money. The powerful economic engine that started a few years ago was going strong before the Covid-19 pandemic, and it has remained on solid ground here.
People’s desire to live a normal life appears to be driving a need for quicker solutions. Masks are now accepted as the saving grace for many businesses. Therapeutic discoveries are at hand, and vaccines are not too far off. We are learning how to cope with change and adversity.
According to the National CDC website, Covid-19 cases are up substantially; which is understandable as people are more engaged with life, but the weekly death rate has been dropping consistently since April 25th. This surely is a good indicator we are on a good path.
Mortgage rates have been in the 2.25% range for a 15 year loan, and 2.75% rate for a 30 year loan, and rates aren’t going up for a long time; this will continue to drive real estate ownership and equity for the foreseeable future.
This is a great market for both sellers and buyers. Sellers are getting more money for their house, and buyers are getting greater buying power with lower rates. It’s a win-win scenario for everyone; which doesn’t happen often enough.
We wish you a beautiful summer season, and invite you to call or text 605.359.4100.
Tony Ratchford, The Ratchford Group, KW Realty Sioux Falls
