🏡 Sioux Falls Real Estate Market Update – October 2025
The Sioux Falls housing market showed several important shifts in October 2025 as new listings tightened, prices adjusted slightly, and buyer activity remained steady. Here’s a clear look at what’s happening in both the City of Sioux Falls and the greater Sioux Falls Metro area, based on the latest reports from the Realtor® Association of the Sioux Empire (RASE).
📉 New Listings Continue to Decline
New home listings dropped significantly in October:
Metro Area: Down 17.6% (654 → 539)
City of Sioux Falls: Down 15.3% (504 → 427)
This decline in seller activity means buyers are facing fewer options heading into the winter months. Low listing volume is one of the main reasons the market remains stable despite softer pricing.
📈 Buyer Demand Remains Consistent
Even with fewer homes hitting the market, buyers stayed active:
Closed Sales:
Metro: Up 8.3%
City: Up 3.3%
This shows that qualified buyers are still in the market and motivated, even as mortgage rates continue to influence affordability. Additionally, Pending Sales across the Sioux Falls region rose more than 16%, which points to continued buyer demand heading into late 2025.
💲 Home Prices Are Adjusting
The October numbers show a moderate price adjustment compared to last year:
Metro Median Sale Price: Down 2.7% ($346,250 → $337,000)
City Median Sale Price: Down 6.0% ($345,825 → $325,000) While month-to-month prices show softening, long-term trends remain stable. Rolling 12-month data still shows solid multi-year appreciation, signaling long-term strength in the Sioux Falls real estate market.
⏳ Homes Are Taking Longer to Sell
Homes are spending more time on the market than they were in 2024:
Metro DOM: 84 days
City DOM: 82 days
Slower market velocity gives buyers more breathing room while encouraging sellers to price homes accurately from the start.
📦 Inventory Remains Low Across All Price Ranges
The Sioux Falls region continues to experience tight housing supply:
Metro Inventory: Down 23%
City Inventory: Down 20.8%
Months Supply of Inventory also dropped significantly:
Metro: From 5.9 months → 3.9 months
City: From 5.5 months → 3.8 months
This lower supply supports price stability and keeps the market competitive for well-presented homes.
👥 What Buyers & Sellers Should Know
For Buyers
You may have more negotiating flexibility thanks to longer Days on Market.
Inventory is still limited in popular neighborhoods, so act quickly when a good home hits the market.
Slight price adjustments offer opportunities, especially for previously owned homes.
For Sellers
Pricing accurately is more important than ever.
Homes with strong online presentation (photos, staging, descriptions) continue to perform well.
Low inventory works in your favor—but overpricing can still lead to long market times.
📝 Final Thoughts
The October 2025 Sioux Falls real estate market shows a balanced landscape: strong buyer activity, lower inventory, moderate price shifts, and longer market times. For both buyers and sellers, understanding these trends can help you make confident decisions heading into the winter season.
If you’d like a personalized breakdown for your neighborhood or home value, feel free to reach out anytime.
