July 2025 Trends in Sioux Falls Luxury Real Estate
As we enter August, a traditionally busy month for real estate, the Sioux Falls Metro area is showing a stable number of active listings for single-family homes over $500,000. This stable inventory suggests a healthy market where both buyers and sellers are engaged.
Monthly Insights
The number of active listings has remained consistent, with a slight increase leading into what is typically the busiest month of the year.
- April 2025: 374 homes
- May 2025: 397 homes (+6.1%)
- June 2025: 387 homes (-2.5%)
- July 2025: 394 homes (+1.8%)
The increase in listings from June to July, a rise of +1.8%, indicates a balanced market where buyer demand is strong but not outpacing new listings. This trend points to a market that is preparing for a final surge of activity before the seasonal slowdown of the colder months.
Understanding the Market Drivers
The current market is being shaped by several key factors.
Buyer and Seller Activity
The consistent number of homes on the market reflects a healthy equilibrium. While sellers are confident in listing their properties, buyers are being selective. This dynamic suggests that buyers are looking for high-quality properties that offer exceptional value, unique features, or custom solutions.
Economic Conditions
The U.S. economy grew at a 3.0 percent rate in the second quarter of 2025, which provides a stable foundation for the luxury market. This economic health gives both buyers and sellers the confidence to participate in the market.
New Housing Construction
The decline in residential investment, which fell at a 4.6 percent rate in the second quarter, is also a significant factor. With new home construction slowing down due to high interest rates and labor shortages, the existing inventory of luxury homes becomes even more valuable and desirable to discerning buyers.
Future Outlook
We can anticipate a final period of high market activity in August before the typical seasonal decline. The market is well-positioned for serious buyers to find exceptional properties, and for sellers to attract strong interest.
For those navigating this market, an agent with a deep understanding of both market trends and construction is invaluable. Kim Hofer's expertise as an agent and luxury home builder allows him to provide guidance that goes beyond the data, helping clients confidently achieve their real estate goals.
Housing Stats: [Housing Supply Overview (Reports ranging from 2024-2025)] REALTOR® ASSOCIATION OF THE SIOUX EMPIRE. https://rase-inc.org/market-data-news/
Growth Report: [GDP Grows at a 3.0 Percent Rate in Q2, Bringing Average for First Half to 1.2 Percent] Center for Economic Policy and Research.https://cepr.net/publications/gdp-quarter-2-2025-report/
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