Sioux Falls Housing Market Update: Tight Inventory, Firm Prices, Planning Watch
Sioux Falls, SD – February 28, 2026 – Prices are holding firm as inventory remains lean, while long-range growth planning moves into final-phase consideration.
Inventory remains lean heading into late winter, helping keep prices firm even as time-to-sell shifts across segments. In a tighter market, small changes in supply and the mix of homes for sale can matter more than usual, especially for buyers watching affordability and sellers trying to time a spring move.
Top takeaways (from the latest referenced updates)
- RASE’s January 2026 stats showed new listings at 548 (down 7%).
- That same report showed inventory at 1,281 (down 28%).
- RASE reported a median sale price of $327,450 with 3.2 months’ supply.
- Redfin’s January 2026 view put the median sale price around $335K and average market time near 46 days.
- The city’s “Shape Sioux Falls 2050” comprehensive plan entered final-phase consideration.
How to read the snapshot
With supply still constrained, sellers of well-maintained, appropriately priced homes tend to stay in a stronger negotiating position. Buyers, meanwhile, may see better leverage on listings that sit longer or need updates, where timing and condition can influence interest more than headline market trends.
It’s also worth watching the practical differences between reported metrics: RASE and Redfin are both describing the same general period, but they can present market views differently. Using both can help set expectations on pricing and days-on-market before making a list-price decision or writing an offer.
Planning watch: why it matters
For anyone planning a purchase, sale, or major remodel this spring, track how the comprehensive plan update feeds into zoning, annexation, and infrastructure priorities. Those decisions can shape neighborhood buildout patterns and influence future housing choices over time.
What are you seeing right now: more new listings, more price cuts, or homes going pending quickly?