The Housing Market is Turning a Corner Going into 2026: Trends to Watch in Sioux Falls, SD

Author Amy Stockberger | Founder, Amy Stockberger Real Estate| Creator, Lifetime Home Support™ Academy| Partner, ProInsight– helping agents scale with Relational Tech™ | Ranked the #1 Real Estate Team in South Dakota since 2017 and #33 in the Nation by
Real Trends

 

After years of high mortgage rates and market hesitation, the housing market in Sioux Falls, SD, is finally showing signs of recovery. As 2026 approaches, momentum is quietly building, with sellers re-entering the market and buyers regaining confidence. If you’re thinking about buying or selling in Sioux Falls, this is the moment to take action.

Why This Matters in Sioux Falls, SD

The Sioux Falls real estate market is experiencing a shift in momentum, with factors like lower mortgage rates and increasing inventory changing the landscape for both buyers and sellers. As the market moves into 2026, Sioux Falls homeowners and buyers are seeing more options and more affordable borrowing.

• Mortgage rates are steadily dropping, making it easier to afford homes in Sioux Falls.
• Inventory levels are climbing, which means more homes for sale across neighborhoods like Jefferson Heights, Prairie Hills, and Arbors Edge.

Housing Market Trends to Watch in Sioux Falls, SD

Tip 1: Mortgage Rates Are Coming Down

Mortgage rates have been trending downward throughout 2025, giving buyers more purchasing power. In Sioux Falls, this shift could help homebuyers afford homes that were previously out of reach.

• Example: A buyer with a $3,000 monthly budget can now afford approximately $25,000 more in home value compared to a year ago, making Sioux Falls homes more accessible.

Tip 2: More Sellers Are Listing Homes

As mortgage rates decline, more homeowners in Sioux Falls are ready to sell. The number of homes available for sale is returning to more normal levels, which benefits buyers looking for variety.

• Insight: As homeowners ease the “lock-in effect,” Sioux Falls inventory is expected to stabilize, giving buyers more options in key areas like Prairie Tree and Arbors Edge.

Tip 3: Buyers Are Returning to the Market

With improving affordability and an increasing inventory of homes, buyers are once again jumping into the Sioux Falls housing market. The rise in purchase applications indicates a demand that could drive a steady market recovery into 2026.

• Key Stats: According to the Mortgage Bankers Association, purchase applications are rising, signaling growing confidence in the Sioux Falls real estate market.

How Amy Stockberger Real Estate Can Help

At Amy Stockberger Real Estate, we’re dedicated to helping you navigate the shifting housing market. Whether you’re looking to buy, sell, or invest, our Lifetime Home Support™ model ensures you have the support you need at every stage of the process.

• Lifetime Home Support™ means we provide ongoing guidance, from finding your dream home to helping you with future moves.
• Our Home Support Team Partners offer exclusive services to make your move smooth and affordable, from lenders to contractors.

Ready to Take the Next Step?

If you’re ready to take advantage of the changing market in Sioux Falls, let’s connect! Book a consultation with our team today and start planning for 2026. Our team is here to serve — before, during, and forever.

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