Is Sioux Falls a Buyer’s or Seller’s Market in 2026?

Sioux Falls is still a seller’s market in 2026, but a noticeably softer one than the frenzy of 2021 and 2022. Inventory is tight — around 3.3 months of supply — yet rising new listings and a wave of builder inventory are handing buyers more choice and more room to negotiate than they’ve had in years.

Quick Answer: As of the summer 2026 reports from the Realtor Association of the Sioux Empire, Sioux Falls remains a seller’s market, with roughly 3.3 months of inventory and homes selling near 98.6% of original list price. But conditions are easing. More new listings and new-construction inventory mean buyers finally have more negotiating leverage than they did at the market’s peak.

By Tyce Ortman — August 24, 2026

Where the Sioux Falls market stands in 2026

The simplest way to read a market is months of supply — how long it would take to sell every home on the market at the current sales pace. Under roughly four to six months leans toward sellers; above that leans toward buyers.

Here’s what the local numbers show right now, straight from the Realtor Association of the Sioux Empire (RASE) monthly reports:

Inventory: about 3.3 months of supply in the June 2026 RASE report, with roughly 892 homes on the market — down about 30% from a year earlier.
Median sale price: around $335,000 in June 2026 and about $340,450 in July 2026, each up roughly 1.6% year over year.
List-to-sale strength: sellers received about 98.6% of their original list price in June 2026.
Time on market: homes were taking around 84 days to sell — a few days longer than a year earlier.
Mortgage rates: the Freddie Mac 30-year fixed averaged about 6.65% for the week ended August 20, 2026.

Put those together and you get a market that still favors sellers on paper — tight supply, near-full list price, steady appreciation — but one that has clearly cooled from the bidding-war peak.

Why it’s still a seller’s market — but a softer one

Three months of inventory is genuinely tight. When there aren’t enough homes to go around, well-priced, move-in-ready listings still sell fast and often at or above asking. That’s the seller’s side of the story, and it’s real.

But the pressure valve is opening. Two things are shifting the balance:

More listings are hitting the market. Inventory is still down year over year, but new listings have been climbing back, giving buyers more to choose from each week instead of fighting over a handful of homes.

Builders are adding real supply. Along the growth corridors — Veterans Parkway, southeast Sioux Falls, the Tea and Harrisburg edges, and northwest Sioux Falls — builders have been steadily delivering new homes. That extra inventory is the single biggest reason buyers have more options than they did during the peak seller’s market, and it’s why many builders are offering rate buydowns and incentives to move standing inventory. If you’re comparing your options, it’s worth weighing new construction against a resale before you decide.

The net effect: prices are still rising, but slowly, and buyers can once again ask for repairs, request closing-cost help, and occasionally negotiate under list — things that were nearly impossible a few years ago.

What it means if you’re buying

You have more leverage than the headlines suggest, especially on homes that have been sitting or on builder inventory that’s ready now. A few things to keep in mind:

Get pre-approved first. With about three months of supply, good homes still move quickly, and sellers take a clean, financed offer seriously.
Look where supply is highest. The newer subdivisions along the growth corridors give you the most negotiating room and the most incentives. Just factor in ongoing road work — think Veterans Parkway lane additions, the 20th Street reconstruction near Avera, and 26th Street near Marion Road — when you weigh commute and access. I break this down in my guide to buying near Sioux Falls road construction.
Don’t wait for a crash. There’s no sign of one locally. Prices are still climbing modestly, so the real question is whether the monthly payment works for you — not whether you can time the bottom. If you’re weighing that, here’s my take on whether now is a good time to buy in Sioux Falls.

This is one of the most common questions buyers in the Sioux Falls area are asking right now, and the honest answer is that “buyer’s or seller’s market” matters less than your own timeline, your rate, and the specific home. That’s exactly the kind of thing I walk clients through before we ever write an offer.

What it means if you’re selling

You’re still selling into a favorable market — but “favorable” no longer means “list it and name your price.” With more competition from new construction and a slowly growing pool of listings, the two things that decide your outcome are price and condition.

Price to the current market, not last year’s. Homes still selling near 98.6% of list are the ones priced right from day one. Overpriced listings sit, then chase the market down. Here’s how I approach pricing a home to sell quickly.
Compete on move-in readiness. When buyers can choose a brand-new build down the road, a clean, updated, well-staged resale wins on value and speed.
Mind your timing. Inventory and buyer traffic shift with the seasons, so whether you list this fall or wait for spring is worth a real conversation.

One local note for sellers: South Dakota keeps closing costs low. You’ll close through a title company — no attorney required — and the state’s real estate transfer fee is just $0.50 per $500 of the sale price, roughly $335 on a median-priced Sioux Falls home, paid by the seller. That’s a small line item compared with many states.

Frequently Asked Questions

Is Sioux Falls a buyer’s or seller’s market right now?

It’s still a seller’s market as of the summer 2026 RASE reports — about 3.3 months of inventory and homes selling near 98.6% of original list price — but it’s clearly softening. More listings and new-construction inventory are giving buyers more choice and more negotiating room than they had at the peak.

How many months of inventory does Sioux Falls have?

Roughly 3.3 months of supply in the June 2026 report, down about 30% from a year earlier. Under about four to six months is generally considered a seller-leaning market, so Sioux Falls still tilts toward sellers.

What is the median home price in Sioux Falls in 2026?

About $335,000 in June 2026 and roughly $340,450 in July 2026, each up around 1.6% year over year. Prices are still rising, but more slowly than in 2024 and 2025.

Are Sioux Falls home prices going to drop?

There’s no sign of a broad drop as of mid-2026. Prices are still climbing modestly while supply stays tight. New construction is adding inventory and slowing the rate of increase, but steady metro growth continues to support values.

Should I buy now or wait?

If you plan to stay several years, waiting for a crash that local data doesn’t predict rarely pays off. Focus on whether the monthly payment works at today’s rates, near 6.65%, and on finding the right home — that matters more than the market label.

The bottom line

Sioux Falls in 2026 is a seller’s market that’s slowly loosening its grip. Sellers still hold the edge, but buyers finally have real options thanks to new construction and a growing pool of listings. Whichever side you’re on, the right move depends on your timeline, your numbers, and the specific home — not just the label on the market.

If you’re thinking through a move in Sioux Falls, Brandon, Harrisburg, Tea, or the surrounding communities, I’m happy to run the real numbers with you. Buyers can start with my free Sioux Falls Buyers Guide, and you can reach out anytime — no pressure, just straight answers.

About Tyce Ortman
Tyce Ortman is a residential real estate agent with the Jeff Merrill Team at eXp Realty, serving Sioux Falls, South Dakota and surrounding communities including Brandon, Harrisburg, and Tea. He works with both buyers and sellers, guiding them from first search or listing all the way through closing. Reach Tyce at 605-413-7903 or through thesiouxfallsguide.com.