March 4, 2024

This paid piece is sponsored by Amy Stockberger Real Estate.

By Amy Stockberger

In the ever-evolving landscape of real estate, understanding the pulse of the market can be the key to unlocking incredible opportunities, whether you’re buying, selling or investing. With recent shifts in mortgage rates, pent-up buyer activity and a keen eye on the Sioux Falls region’s market dynamics, there’s a lot to be optimistic about.

The bigger picture: Mortgage rates and market trends

Nationally, we’ve seen a roller coaster in mortgage rates, with a significant peak last fall. However, the trend now is leaning toward a more favorable direction. While we’re not back to the record lows of the pandemic era, the horizon looks promising, with projections suggesting rates could dip below 6 percent before year-end. This forecast, supported by experts and recent Fannie Mae projections, paints a hopeful picture for potential homebuyers and sellers.

Sioux Falls market at a glance

Zooming into our backyard, the Sioux Falls region presents an even more compelling narrative. The latest data reveals a vibrant market, with new listings up by 10.9 percent at 456 properties. Pending sales have seen a remarkable increase of 20.8 percent, standing at 267. This uptick in activity is a clear indicator of a robust market, with inventory levels also rising by 6.3 percent to 1,236 units. At Amy Stockberger Real Estate, January was very similar to January 2021 for under-contract homes. 

The financial aspect of the market is equally encouraging. The median sales price has climbed by 10.7 percent to $309,950, reflecting the area’s growing appeal and the value of homes in our community. However, with days on the market increasing by 11.5 percent to 87 days and the supply of homes for sale up by 12.9 percent to 3.5 months, it’s evident that buyers are feeling more empowered and have more options to choose from.

What this means for you

For those pondering the timing of their next real estate move, the current landscape offers a unique window of opportunity. The slight easing of mortgage rates nationally, coupled with the specific growth and dynamics in the Sioux Falls market, suggests that now might be the perfect time to act, whether you’re looking to buy, sell or invest.

Sellers: In the Sioux Falls area, we’re witnessing a remarkable surge of families and individuals relocating here, seeking homes across a diverse range of price points. This influx, coupled with a significant backlog of buyers eagerly waiting for properties that meet their specific needs, presents a golden opportunity for sellers. Despite an increase in listings, demand far outstrips supply, keeping the market dynamic and competitive.

At Amy Stockberger Real Estate, we understand the critical importance of accurate home valuations. Unlike the estimates provided by online platforms, our equity assessments are crafted meticulously to reflect the true market value of your home, ensuring that you’re positioned to capitalize on the current market conditions effectively. With the market’s inventory still not reaching the levels seen before the pandemic, strategically pricing your home can draw significant interest from ready buyers.

The current environment is ripe for sellers, with properties correctly aligned with market expectations quickly becoming the focus of intense buyer interest. For a comprehensive and accurate review of your home’s equity, which online tools simply can’t match, scan the QR code. Let us help you understand the real value of your property and how to leverage it in today’s market.

Buyers: The increase in inventory and the potential for more favorable mortgage rates create a conducive environment for finding your dream home. The slight boost in purchasing power means your budget could stretch further than you think, and as prices continue to rise, waiting will cost you more in the end. If you are not seeing homes that match your parameters and budget, please reach out to us because we still have a lot of behind-the-scenes listings that we can get you through. 

Investors: Watching the prices climb and feeling the buzz of activity in the market just reinforces what I’ve always believed: Real estate is a phenomenal way to build wealth. It’s a passion of mine, so much so that we’ve been teaching our son the value of investing in real estate from an early age. By saving diligently, he was able to make his first property purchase at 18. And just recently, one of our team members, only 20 years old, stepped into the investment game with his first property. Seeing this kind of ambition and success in young investors is incredibly exciting for me.

Maximizing your home’s equity: A world of possibilities

Recent data from Black Knight reveals that tappable equity, which refers to the equity homeowners can access while maintaining a maximum 80 percent loan-to-value ratio, has hit unprecedented levels. This milestone signifies that homeowners across the board have more accessible equity than at any previous point in time, positioning them in a notably stronger financial stance compared with the early 2000s. For homeowners contemplating their next move, this surge in equity means there’s a wealth of opportunities at your fingertips, even if selling your home isn’t part of your immediate plans.

For those not looking to enter the selling market at this moment, an array of options exists to leverage this increased equity to your advantage. Whether your goals involve expanding your investment portfolio, enhancing your current living space or exploring other financial ventures, the current equity landscape opens the door to numerous possibilities.

What you can do with your equity

Discovering the equity you have in your home opens a world of possibilities:

Investment property: If you’re itching to dive into real estate investment or looking to expand your portfolio, you’re in the right place. We’ve got a network of investors ready to align with your investment goals and budget. Whether you’re starting out or scaling up, we’re here to connect you with opportunities that match your ambition. With the right strategy, the potential for rewarding returns is within your grasp. Let’s make those investment dreams a reality.

Home remodeling: If upgrading your current home is more your style, our dedicated Home Support Team partners are at your disposal. From minor updates to major renovations, we have the contacts and resources to bring your vision to life, enhancing your home’s value and your quality of life.

Diverse opportunities: Whether it’s securing a vacation home, planning for retirement or exploring other investment avenues, your home equity can be the key to unlocking these dreams. With Amy Stockberger Real Estate, you have a partner ready to explore these opportunities with you.

Bottom line

The Sioux Falls real estate market is bustling with opportunity. Whether you’re looking to buy, sell or invest, the current conditions are promising. At Amy Stockberger Real Estate, we’re more than just agents — we’re your partners in building big, juicy legacies through smart real estate decisions. With our unique Lifetime Home Support model and innovative value propositions, we’re here to guide you every step of the way.

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