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Home Mortgage Rates in South Dakota

Mount Rushmore.

The dynamics of real estate prices in South Dakota are unique because of the presence of Mount Rushmore in the state, as well as the large amount of land there that falls within the protection of national parks. For this reason, large sections of the state are essentially unpopulated. Not surprisingly, the most valuable real estate in South Dakota borders these parks and attractions, primarily in the south west quadrant of the state. Property near the Minnesota border also tends to boast higher home values.

Given this unique set of circumstances, the trends in home values can be understood in slightly different terms. Understanding the available mortgage types, the options available to homeowners, and the foreclosure regulations is necessary for those who wish to participate in the market. While this is only a preliminary exploration of pertinent information, it can serve as a starting point for those interested in educating themselves.

Places to Live

Metropolitan Areas

SD Rank US Rank Metropolitan Area 2016 Pop 2010 Pop Change % △
1 186 Sioux Falls 255,729 228,261 27,468 12.03%
2 250 Sioux City, IA-NE-SD Metro Area 169,140 168,563 577 0.34%
3 290 Rapid City 145,661 134,598 11,063 8.22%
4 662 Aberdeen 43,080 40,602 2,478 6.10%
5 773 Brookings 34,135 31,965 2,170 6.79%
6 834 Watertown 28,063 27,227 836 3.07%
7 865 Spearfish 25,281 24,097 1,184 4.91%
8 874 Mitchell 23,277 22,835 442 1.94%
9 885 Yankton 22,616 22,438 178 0.79%
10 890 Pierre 22,014 21,361 653 3.06%
11 914 Huron 18,101 17,398 703 4.04%
12 929 Vermillion 14,086 13,864 222 1.60%

Real Estate Prices

Average home prices across the state fall in the bottom 50% for the country. Recent research places the average value of homes in Missouri between $215,000 and $260,000. In relative terms, California and New York that have the highest average home prices in the country with average prices in each of those states above $400,000. South Dakota is on par with most of the Midwest, with the exception of Illinois, which is inflated by the high prices in Chicago. Prices are similar to those found in Minnesota and Wisconsin.

Across the state, home values have fallen by approximately 25%. While some experts have asserted that a recovery has begun in the real estate market, others believe that the affects of commercial real estate problems have not finished influencing prices. This latter group believes that further declines are on the horizon, to be accompanied by another round of foreclosures. If this second round comes to fruition, home prices could fall by another 25%.

Downtown Sioux Falls.

The most populous cities in the state are Sioux Falls (174,360) & Rapid City (74,048). All other cities in the state have a population below 30,000. There are only about a dozen cities in the state with a population of at least 10,000 people with most of the state remaining rural.

While the future remains uncertain, the evidence available suggests that rather than a recovery, a degree of stabilization can be identified. Prices may not be rising, but they have stopped declining. This is an important phase because it will give the market time to work out some of the issues that helped to create the bubble in first place. With some care, housing prices will remain stable and ultimately turn to a healthy rate of growth, rather than the unsustainable run that marked the years leading up to the collapse.

Rapid City Skyline.

The Impact of Tourism

South Dakota is a state that is highly reliant on tourism for jobs and income. In the aftermath of recent economic events the impact on South Dakota are mixed. On the one hand, people are traveling less as an obvious way to trim their budgets and save money. On the other hand, those who are still choosing to take trips are selecting vacations that are more affordable. A trip to Mount Rushmore with one’s family is more educational and less expensive that a trip to Hawaii. While the overall number of visitors to the area has fallen some, it is less dramatic that the falloff seen at other vacation destinations. Overall, this has impacted the real estate market less than in other states as well (Florida real estate has been amongst the hardest hit by the recession).

South Dakota Census Data

According to the United States Census an estimated 865,454 people live in the state of South Dakota. The state has 75,811 mi² of land area, which gave it a population density of 11.42 per mi². Here is a list of cities, towns, villages & Census Designated Places with more than 100 residents, with their estimated population as of June 2016 & the 2010 United States Census. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Sioux Falls Minnehaha & Lincoln 174,360 153,888 20,472 13.30% 72.96 2,389.80
2 Rapid City Pennington 74,048 67,956 6,092 8.96% 55.41 1,336.37
3 Aberdeen Brown 28,415 26,091 2,324 8.91% 15.5 1,833.23
4 Brookings Brookings 23,895 22,056 1,839 8.34% 12.94 1,846.60
5 Watertown Codington 22,172 21,482 690 3.21% 17.45 1,270.60
6 Mitchell Davison 15,729 15,254 475 3.11% 11.14 1,411.94
7 Yankton Yankton 14,566 14,454 112 0.77% 8.21 1,774.18
8 Pierre Hughes 14,008 13,646 362 2.65% 13.06 1,072.59
9 Huron Beadle 13,117 12,592 525 4.17% 9.48 1,383.65
10 Spearfish Lawrence 11,531 10,494 1,037 9.88% 16.34 705.69
11 Vermillion Clay 10,844 10,571 273 2.58% 4.03 2,690.82
12 Brandon Minnehaha 9,923 8,785 1,138 12.95% 5.37 1,847.86
13 Box Elder Pennington & Meade 9,348 7,800 1,548 19.85% 13.9 672.52
Rapid Valley CDP Pennington 8,516 8,260 256 3.10% 7.44 1,144.62
14 Madison Lake 7,425 6,474 951 14.69% 4.61 1,610.63
15 Sturgis Meade 6,832 6,627 205 3.09% 3.99 1,712.28
16 Harrisburg Lincoln 5,734 4,089 1,645 40.23% 2.48 2,312.10
17 Belle Fourche Butte 5,655 5,594 61 1.09% 8.53 662.95
18 Tea Lincoln 5,032 3,806 1,226 32.21% 1.69 2,977.51
19 Dell Rapids Minnehaha 3,705 3,633 72 1.98% 2.03 1,825.12
20 Mobridge Walworth 3,570 3,465 105 3.03% 1.89 1,888.89
21 Hot Springs Fall River 3,564 3,711 -147 -3.96% 3.61 987.26
Pine Ridge CDP Shannon 3,562 3,308 254 7.68% 2.84 1,254.23
22 Canton Lincoln 3,386 3,057 329 10.76% 3.19 1,061.44
23 Milbank Grant 3,203 3,353 -150 -4.47% 2.76 1,160.51
24 Hartford Minnehaha 3,140 2,534 606 23.91% 2.27 1,383.26
25 Lead Lawrence 3,010 3,124 -114 -3.65% 2.06 1,461.17
Dakota Dunes CDP Union 2,970 2,540 430 16.93% 2.44 1,217.21
Blackhawk CDP Meade 2,893 2,892 1 0.03% 4.88 592.83
26 Winner Tripp 2,861 2,897 -36 -1.24% 2.2 1,300.45
27 North Sioux City Union 2,731 2,530 201 7.94% 2.26 1,208.41
28 Sisseton Roberts 2,429 2,470 -41 -1.66% 1.59 1,527.67
29 Summerset Meade 2,392 1,814 578 31.86% 2.21 1,082.35
30 Chamberlain Brule 2,369 2,387 -18 -0.75% 6.64 356.78
31 Redfield Spink 2,339 2,333 6 0.26% 1.89 1,237.57
32 Flandreau Moody 2,332 2,341 -9 -0.38% 1.86 1,253.76
33 Lennox Lincoln 2,330 2,111 219 10.37% 1.31 1,778.63
34 Fort Pierre Stanley 2,148 2,078 70 3.37% 3.11 690.68
North Eagle Butte CDP Dewey 2,091 1,954 137 7.01% 9.1 229.78
North Spearfish CDP Lawrence 2,054 2,221 -167 -7.52% 3.17 647.95
35 Beresford Union & Lincoln 1,969 2,005 -36 -1.80% 1.78 1,106.18
36 Custer Custer 1,956 2,067 -111 -5.37% 2.53 773.12
37 Springfield Bon Homme 1,950 1,989 -39 -1.96% 1.01 1,930.69
38 Volga Brookings 1,910 1,768 142 8.03% 0.91 2,098.90
Colonial Pine Hills CDP Pennington 1,906 2,493 -587 -23.55% 15.89 119.95
39 Elk Point Union 1,851 1,963 -112 -5.71% 1.36 1,361.03
40 Webster Day 1,808 1,886 -78 -4.14% 1.49 1,213.42
Rosebud CDP Todd 1,665 1,587 78 4.91% 12.96 128.47
41 Wagner Charles Mix 1,586 1,566 20 1.28% 2.04 777.45
42 Parkston Hutchinson 1,511 1,508 3 0.20% 0.91 1,660.44
43 Groton Brown 1,509 1,458 51 3.50% 1.75 862.29
44 Miller Hand 1,420 1,489 -69 -4.63% 0.98 1,448.98
Oglala CDP Shannon 1,404 1,290 114 8.84% 12.5 112.32
Porcupine CDP Shannon 1,369 1,062 307 28.91% 9.54 143.50
45 Eagle Butte Ziebach & Dewey 1,349 1,318 31 2.35% 1.17 1,152.99
46 Crooks Minnehaha 1,327 1,269 58 4.57% 0.77 1,723.38
47 Salem McCook 1,324 1,347 -23 -1.71% 1.24 1,067.74
48 Freeman Hutchinson 1,308 1,306 2 0.15% 1.11 1,178.38
Fort Thompson CDP Buffalo 1,286 1,282 4 0.31% 10.38 123.89
49 Platte Charles Mix 1,273 1,230 43 3.50% 1.02 1,248.04
50 Deadwood Lawrence 1,264 1,270 -6 -0.47% 3.83 330.03
51 Britton Marshall 1,250 1,241 9 0.73% 0.73 1,712.33
52 Gregory Gregory 1,244 1,295 -51 -3.94% 1.71 727.49
53 Mission Todd 1,236 1,182 54 4.57% 0.59 2,094.92
54 Clear Lake Deuel 1,226 1,273 -47 -3.69% 3.07 399.35
55 Lemmon Perkins 1,216 1,227 -11 -0.90% 1.04 1,169.23
56 Garretson Minnehaha 1,193 1,166 27 2.32% 1.45 822.76
57 Gettysburg Potter 1,155 1,162 -7 -0.60% 1.89 611.11
58 Baltic Minnehaha 1,152 1,089 63 5.79% 0.74 1,556.76
Antelope CDP Todd 1,126 826 300 36.32% 2.29 491.70
59 De Smet Kingsbury 1,077 1,089 -12 -1.10% 1.16 928.45
60 Martin Bennett 1,071 1,071 0 0.00% 0.53 2,020.75
61 Tyndall Bon Homme 1,049 1,067 -18 -1.69% 1.58 663.92
62 Clark Clark 1,048 1,139 -91 -7.99% 1.28 818.75
63 Hill City Pennington 1,008 948 60 6.33% 1.26 800.00
64 Parker Turner 1,007 1,022 -15 -1.47% 1.15 875.65
Kyle CDP Shannon 983 846 137 16.19% 1.47 668.71
65 Worthing Lincoln 957 877 80 9.12% 0.56 1,708.93
66 Ipswich Edmunds 951 954 -3 -0.31% 1.34 709.70
67 Whitewood Lawrence 931 927 4 0.43% 0.64 1,454.69
68 Wessington Springs Jerauld 921 956 -35 -3.66% 1.77 520.34
Ashland Heights CDP Pennington 891 754 137 18.17% 2.92 305.14
69 Arlington Kingsbury & Brookings 880 915 -35 -3.83% 1.66 530.12
70 Centerville Turner 879 882 -3 -0.34% 0.72 1,220.83
71 Wall Pennington 872 766 106 13.84% 2.17 401.84
72 Piedmont Meade 860 222 638 287.39% 0.29 2,965.52
Lake Madison CDP Lake 859 683 176 25.77% 4.75 180.84
73 Eureka McPherson 848 868 -20 -2.30% 0.93 911.83
74 Lake Andes Charles Mix 841 879 -38 -4.32% 0.8 1,051.25
75 Scotland Bon Homme 819 841 -22 -2.62% 0.85 963.53
Wanblee CDP Jackson 801 725 76 10.48% 2.14 374.30
76 Howard Miner 800 858 -58 -6.76% 0.95 842.11
77 Marion Turner 779 784 -5 -0.64% 0.87 895.40
78 Viborg Turner 774 782 -8 -1.02% 0.4 1,935.00
79 Philip Haakon 765 779 -14 -1.80% 0.6 1,275.00
80 Valley Springs Minnehaha 760 759 1 0.13% 0.82 926.83
81 Highmore Hyde 754 795 -41 -5.16% 1.88 401.06
82 Estelline Hamlin 751 768 -17 -2.21% 0.95 790.53
83 Alcester Union 748 807 -59 -7.31% 0.33 2,266.67
84 Faulkton Faulk 747 736 11 1.49% 1.01 739.60
Johnson Siding CDP Pennington 736 659 77 11.68% 3.73 197.32
85 Edgemont Fall River 736 774 -38 -4.91% 0.97 758.76
Parmelee CDP Todd 729 562 167 29.72% 5.71 127.67
86 Elkton Brookings 723 736 -13 -1.77% 1.55 466.45
87 Plankinton Aurora 718 707 11 1.56% 0.76 944.74
88 Kadoka Jackson 707 654 53 8.10% 2.28 310.09
89 Colton Minnehaha 684 687 -3 -0.44% 0.7 977.14
Manderson-White Horse Creek CDP Shannon 681 626 55 8.79% 5.73 118.85
90 Kimball Brule 679 703 -24 -3.41% 3.09 219.74
91 Armour Douglas 678 699 -21 -3.00% 0.94 721.28
92 Woonsocket Sanborn 671 655 16 2.44% 0.78 860.26
93 New Underwood Pennington 668 660 8 1.21% 1.01 661.39
94 Aurora  Brookings 667 532 135 25.38% 0.46 1,450.00
95 McLaughlin Corson 665 663 2 0.30% 0.4 1,662.50
96 Onida Sully 659 658 1 0.15% 0.64 1,029.69
Allen CDP Bennett 658 420 238 56.67% 3.24 203.09
97 Selby Walworth 649 642 7 1.09% 0.71 914.08
98 Tripp Hutchinson 638 647 -9 -1.39% 0.59 1,081.36
99 Canistota McCook 636 656 -20 -3.05% 0.56 1,135.71
100 Castlewood Hamlin 633 627 6 0.96% 1.15 550.43
101 Alexandria Hanson 626 615 11 1.79% 0.62 1,009.68
Goodwill CDP Roberts 623 513 110 21.44% 0.76 819.74
102 Menno Hutchinson 620 608 12 1.97% 0.52 1,192.31
Shindler CDP Lincoln 601 584 17 2.91% 1.5 400.67
Green Valley CDP Pennington 599 928 -329 -35.45% 3.84 155.99
103 Avon Bon Homme 591 590 1 0.17% 0.64 923.44
Wounded Knee CDP Shannon 590 382 208 54.45% 1.07 551.40
Lower Brule CDP Lyman 587 613 -26 -4.24% 0.36 1,630.56
104 White River Mellette 587 581 6 1.03% 0.52 1,128.85
105 Burke Gregory 586 604 -18 -2.98% 0.56 1,046.43
106 Newell Butte 586 603 -17 -2.82% 1.01 580.20
107 Corsica Douglas 584 592 -8 -1.35% 0.84 695.24
108 Humboldt Minnehaha 580 589 -9 -1.53% 0.62 935.48
109 Colman Moody 579 594 -15 -2.53% 1.88 307.98
110 St. Francis Todd 576 709 -133 -18.76% 0.36 1,600.00
111 Waubay Day 575 576 -1 -0.17% 1.45 396.55
112 Lake Preston Kingsbury 565 599 -34 -5.68% 0.76 743.42
Blucksberg Mountain CDP Meade 541 462 79 17.10% 0.67 807.46
113 Veblen Marshall 539 531 8 1.51% 0.31 1,738.71
114 Dupree Ziebach 527 525 2 0.38% 0.39 1,351.28
115 Jefferson Union 507 547 -40 -7.31% 0.5 1,014.00
116 Presho Lyman 507 497 10 2.01% 0.67 756.72
117 Wilmot Roberts 499 492 7 1.42% 0.49 1,018.37
118 Bowdle Edmunds 492 502 -10 -1.99% 0.64 768.75
119 Timber Lake Dewey 489 443 46 10.38% 0.41 1,192.68
120 Warner Brown 488 457 31 6.78% 0.28 1,742.86
121 White Brookings 487 485 2 0.41% 0.99 491.92
122 Lake Norden Hamlin 481 467 14 3.00% 0.83 579.52
Marty CDP Charles Mix 479 402 77 19.15% 3.22 148.76
123 Oacoma Lyman 476 451 25 5.54% 2.59 183.78
124 Bridgewater McCook 475 492 -17 -3.46% 1.13 420.35
125 Montrose McCook 463 472 -9 -1.91% 0.41 1,129.27
126 Murdo Jones 461 488 -27 -5.53% 0.63 731.75
127 Big Stone City Grant 456 467 -11 -2.36% 1.2 380.00
128 Bryant Hamlin 450 456 -6 -1.32% 0.52 865.38
129 Emery Hanson 449 447 2 0.45% 0.45 997.78
Lake Poinsett CDP Hamlin & Brookings 441 493 -52 -10.55% 5.21 84.64
130 Mount Vernon Davison 441 462 -21 -4.55% 0.35 1,260.00
131 Leola McPherson 441 457 -16 -3.50% 0.71 621.13
132 Rosholt Roberts 423 423 0 0.00% 0.29 1,458.62
133 Irene Turner, Clay & Yankton 421 420 1 0.24% 0.26 1,619.23
134 Faith Meade 419 421 -2 -0.48% 1.2 349.17
135 Herreid Campbell 416 438 -22 -5.02% 1.39 299.28
136 Tabor Bon Homme 413 423 -10 -2.36% 0.37 1,116.22
137 Gayville Yankton 409 407 2 0.49% 0.21 1,947.62
138 Hurley Turner 405 415 -10 -2.41% 0.62 653.23
139 Hoven Potter 399 406 -7 -1.72% 0.31 1,287.10
140 Wolsey Beadle 394 376 18 4.79% 2.26 174.34
141 Hermosa Custer 392 398 -6 -1.51% 0.48 816.67
Meadow View Addition CDP Minnehaha 382 538 -156 -29.00% 1.08 353.70
142 Hayti Hamlin 378 381 -3 -0.79% 0.31 1,219.35
Okreek CDP Todd 373 269 104 38.66% 44.99 8.29
143 White Lake Aurora 372 372 0 0.00% 0.43 865.12
144 Florence Codington 369 374 -5 -1.34% 0.69 534.78
145 Blunt Hughes 358 354 4 1.13% 0.49 730.61
146 Buffalo Harding 353 330 23 6.97% 0.55 641.82
147 Keystone Pennington 340 337 3 0.89% 2.86 118.88
148 Bison Perkins 336 333 3 0.90% 0.99 339.39
Chester CDP Lake 334 261 73 27.97% 0.82 407.32
Little Eagle CDP Corson 332 319 13 4.08% 1.4 237.14
149 Ethan Davison 329 331 -2 -0.60% 0.25 1,316.00
150 Bristol Day 328 341 -13 -3.81% 0.52 630.77
151 Langford Marshall 326 313 13 4.15% 0.31 1,051.61
Anderson CDP Minnehaha 325 371 -46 -12.40% 0.98 331.63
152 Hudson Lincoln 320 296 24 8.11% 0.28 1,142.86
153 Wakonda Clay 316 321 -5 -1.56% 0.39 810.26
154 Roscoe Edmunds 313 329 -16 -4.86% 0.47 665.96
Bullhead CDP Corson 298 348 -50 -14.37% 3.01 99.00
Two Strike CDP Todd 298 209 89 42.58% 18.53 16.08
Long Hollow CDP Roberts 298 192 106 55.21% 14.43 20.65
155 Pukwana Brule 296 285 11 3.86% 0.76 389.47
Pine Lakes Addition CDP Minnehaha 291 314 -23 -7.32% 0.19 1,531.58
156 Summit Roberts 288 288 0 0.00% 0.56 514.29
157 Colome Tripp 286 296 -10 -3.38% 0.27 1,059.26
158 Stickney Aurora 286 284 2 0.70% 0.27 1,059.26
159 Alpena Jerauld 278 286 -8 -2.80% 1.63 170.55
160 Egan Moody 276 278 -2 -0.72% 1.07 257.94
161 Bonesteel Gregory 272 275 -3 -1.09% 0.35 777.14
Renner Corner CDP Minnehaha 270 305 -35 -11.48% 1.29 209.30
162 Henry Codington 264 267 -3 -1.12% 1.45 182.07
163 Chancellor Turner 262 264 -2 -0.76% 0.22 1,190.91
164 Iroquois Kingsbury & Beadle 261 266 -5 -1.88% 0.62 420.97
165 Kennebec Lyman 261 240 21 8.75% 0.85 307.06
166 New Effington Roberts 256 256 0 0.00% 0.26 984.62
Bath CDP Brown 251 172 79 45.93% 0.29 865.52
167 Willow Lake Clark 245 263 -18 -6.84% 0.37 662.16
168 Nisland Butte 236 232 4 1.72% 0.27 874.07
169 Trent Moody 235 232 3 1.29% 1.04 225.96
170 Hecla Brown 229 227 2 0.88% 0.34 673.53
171 Delmont Douglas 228 234 -6 -2.56% 0.76 300.00
172 Pollock Campbell 226 241 -15 -6.22% 0.32 706.25
173 South Shore Codington 226 225 1 0.44% 1.4 161.43
174 Gary Deuel 225 227 -2 -0.88% 0.69 326.09
175 Pickstown Charles Mix 224 201 23 11.44% 0.65 344.62
176 Reliance Lyman 219 191 28 14.66% 1.09 200.92
177 Mellette Spink 218 210 8 3.81% 0.26 838.46
178 Geddes Charles Mix 214 208 6 2.88% 0.61 350.82
179 Tulare Spink 214 207 7 3.38% 0.26 823.08
Spring Creek CDP Todd 211 268 -57 -21.27% 10.37 20.35
180 Bruce  Brookings 206 204 2 0.98% 0.37 556.76
181 Toronto Deuel 205 212 -7 -3.30% 0.31 661.29
182 Ramona Lake 205 174 31 17.82% 0.27 759.26
183 Frederick Brown 204 199 5 2.51% 0.39 523.08
White Horse CDP Todd 202 276 -74 -26.81% 3.16 63.92
184 Hosmer Edmunds 200 208 -8 -3.85% 0.99 202.02
185 St. Lawrence Hand 198 198 0 0.00% 0.34 582.35
186 Wentworth Lake 197 171 26 15.20% 0.25 788.00
La Plant CDP Dewey 193 171 22 12.87% 9.45 20.42
Brant Lake CDP Lake 192 159 33 20.75% 1.19 161.34
187 Doland Spink 185 180 5 2.78% 0.59 313.56
188 Roslyn Day 178 183 -5 -2.73% 0.2 890.00
189 Kranzburg Codington 177 172 5 2.91% 0.76 232.89
190 Wessington Beadle & Hand 177 170 7 4.12% 0.38 465.79
191 Letcher Sanborn 176 173 3 1.73% 0.62 283.87
192 Mission Hill Yankton 173 177 -4 -2.26% 0.33 524.24
193 McIntosh Corson 172 173 -1 -0.58% 0.73 235.62
Agency Village CDP Roberts 170 181 -11 -6.08% 5.71 29.77
194 Peever Roberts 168 168 0 0.00% 0.12 1,400.00
Norris CDP Mellette 165 152 13 8.55% 0.87 189.66
195 Wentworth village Lake 164 171 -7 -4.09% 0.25 656.00
Whitehorse CDP Dewey 162 141 21 14.89% 2.74 59.12
196 Volin Yankton 162 161 1 0.62% 0.2 810.00
197 Monroe Turner 158 160 -2 -1.25% 0.38 415.79
198 Frankfort Spink 154 149 5 3.36% 0.79 194.94
199 Isabel Dewey 152 135 17 12.59% 0.91 167.03
200 Spencer McCook 151 154 -3 -1.95% 0.27 559.26
201 Northville Spink 146 143 3 2.10% 0.38 384.21
202 Conde Spink 145 140 5 3.57% 0.56 258.93
203 Goodwin Deuel 141 146 -5 -3.42% 0.47 300.00
204 Artesian Sanborn 140 138 2 1.45% 0.55 254.55
205 Carthage Miner 139 144 -5 -3.47% 1.46 95.21
206 Columbia Brown 137 136 1 0.74% 1.52 90.13
207 Buffalo Gap Custer 136 126 10 7.94% 0.31 438.71
208 Astoria Deuel 135 139 -4 -2.88% 0.16 843.75
209 Westport Brown 134 133 1 0.75% 0.23 582.61
210 Java Walworth 134 129 5 3.88% 0.49 273.47
211 Central City Lawrence 131 134 -3 -2.24% 0.15 873.33
212 Dimock Hutchinson 131 125 6 4.80% 0.16 818.75
Bath Corner CDP 129 49 80 163.27% 0.17 758.82
213 Pierpont Day 129 135 -6 -4.44% 0.15 860.00
Forestburg CDP Sanborn 128 73 55 75.34% 0.6 213.33
Vale CDP Butte 128 136 -8 -5.88% 1.47 87.07
214 Claremont Brown 128 127 1 0.79% 0.25 512.00
215 Lesterville Yankton 128 127 1 0.79% 0.2 640.00
216 Oldham Kingsbury 127 133 -6 -4.51% 0.25 508.00
217 Oelrichs Fall River 127 126 1 0.79% 0.38 334.21
218 Midland Haakon 126 129 -3 -2.33% 0.34 370.59
219 Ashton Spink 124 122 2 1.64% 0.44 281.82
220 Harrold Hughes 123 124 -1 -0.81% 0.27 455.56
221 Dallas Gregory 122 120 2 1.67% 0.5 244.00
222 Sinai Brookings 119 120 -1 -0.83% 0.37 321.62
223 Cavour Beadle 118 114 4 3.51% 0.41 287.80
Soldier Creek CDP Todd 115 227 -112 -49.34% 12.23 9.40
224 Batesland Shannon 115 108 7 6.48% 0.09 1,277.78
225 Revillo Grant 114 119 -5 -4.20% 0.17 670.59
Harrison CDP Douglas 113 52 61 117.31% 0.11 1,027.27
226 Fairfax Gregory 112 115 -3 -2.61% 0.3 373.33
Mansfield CDP Spink & Brown 111 93 18 19.35% 2.41 46.06
227 Yale Beadle 111 108 3 2.78% 0.15 740.00
228 Pringle Custer 109 112 -3 -2.68% 0.24 454.17
229 Corona Roberts 109 109 0 0.00% 0.25 436.00
230 Glenham Walworth 108 105 3 2.86% 0.33 327.27
231 Stockholm Grant 107 108 -1 -0.93% 0.43 248.84
232 Brandt Deuel 104 107 -3 -2.80% 1.26 82.54
233 Interior Jackson 104 94 10 10.64% 1.34 77.61
234 Badger Kingsbury 103 107 -4 -3.74% 1.06 97.17
235 Canova Miner 103 105 -2 -1.90% 0.31 332.26
236 Cresbard Faulk 103 104 -1 -0.96% 0.41 251.22
237 Herrick Gregory 102 105 -3 -2.86% 0.52 196.15

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Mortgage Types

Each of the following types of mortgages can be written under either of the above structures. The following loan types describe the manner in which a lender gets paid, where the mechanics discussed above details how the lender secures its interest in the property.

As of 2017 the conforming loan limit across the United States is set to $424,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $424,100 ceiling apply statewide for single unit homes. Dual unit homes have a limit of $543,000, triple unit homes have a limit of $656,350 & quadruple unit homes have a limit of $815,650. People buying premium properties in the Sioux Falls metro area may be above these thresholds, requiring a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.

Fixed Rate Mortgages – Under this structure, the borrower makes equal principal and interest payments to the lender for the duration of the loan. The majority of these loans last 30 years, although some are written for 15 years. The fixed interest rate affords the borrower a degree of protection because the rate will not increase even if rates in the general market increase. Lenders tend to charge higher rates for this type of loan because of the fixed rate. This is the best approach for borrowers when rates are very low because they can lock in the attractive rate.

Adjustable Rate Mortgages (ARM) – The initial rate charged by lenders for an adjustable rate mortgage is lower than the corresponding rate for a fixed rate mortgage. This is due to the fact that the lender can afford to charge the lower rate knowing that if rates in the general market rise, the loan will reset to a higher rate. While almost all ARMs are written with 30 year terms, there are two important time periods to be aware of when considering this type of loan: the duration of the original rate until the initial reset, and the amount of time between subsequent rate resets. Generally, the second of these numbers is one year – ARMs adjust after the first reset every year. The initial reset period may vary, however, ranging from 6 months to 5 years. The length of the initial period affect how long the borrower can take advantage of the lower rate and how long it will take with maximum loan resets for the ARM to become more expensive to the borrower than the corresponding fixed rate loan. This is an important consideration when considering which type of loan is most appropriate for one’s specific circumstances.

Home Equity Loans and Lines of Credit – A home equity loan is most typically used for home improvement projects or to help reduce the cost of a large loan amount. In the latter case, the blended rate of taking out a small traditional loan (under $417,000 to remain under the jumbo loan limit) and a home equity loan may be lower than the elevated jumbo rate. A home equity line of credit is a revolving line, like a credit card, that can be drawn upon as needed. Once the line is drawn, repayment begins; there is a minimum payment amount and a maximum credit limit.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.

South Dakota Mortgage Structures

Traditional Lien Mortgages – The preferred way for lenders to provide capital to a home buyer wishing to purchase property is through the use of a traditional mortgage. Under this structure, the lender is the mortgagor and the borrower is the mortgagee. After the loan is made, the mortgagor receives a lien against the property. The lien remains in effect until the debt is discharged. When a default occurs the two parties to the agreement are at odds and their dispute must be resolved by a court (see the discussion of judicial foreclosure below).

Deeds of Trust – Unlike a traditional mortgage, a deed of trust is a tripartite agreement between the lender, the borrower, and a neutral third party. The lender is the beneficiary, receiving the interest payments from the borrower, who is known as the trustor. The trustee, the third party to the agreement, is a neutral party who holds the deed to the property in trust until the terms of the agreement are satisfied. The trust agreement allows the trustee to sell the property if certain conditions are met (see the discussion of non-judicial foreclosure below).

Natural Disasters

Flood Insurance

Homeowner's insurance policies typically do not cover flooding. Most of the state of South Dakota is considered to have a very low flooding risk. Minnehaha, home of Sioux Falls, is considered to have a moderate flooding risk.

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Tornadoes

The eastern edge of the state is considered to have a moderate tornado risk. A basic homeowners policy should cover financial damages from tornadoes.

Hail

Hail damage is common across the state. Damage from hail is typically covered by home insurance policies.

Foreclosure Procedures and Regulations

The rules that follow are an overview of the basic guidelines for foreclosure in South Dakota. Those who find themselves involved in such a situation are strongly encouraged to consult a professional.

  1. Lenders who have provided capital under a traditional mortgage must proceed against the property of a defaulting borrower through a judicial foreclosure. This means that a complaint must be filed with the court to open a case. The court then oversees the proceedings, making rulings when needed.
  2. If the lender has made the loan under a deed of trust (which is less common in South Dakota), a trustee sale may be used in what is called a non-judicial foreclosure. Under the terms of the trust agreement, the trustee may follow set procedures to sell the property without involving the court.
  3. After a complaint is filed in a judicial foreclosure, the documents involved may take as long as 150 days to process, giving the borrower time to cure the deficiency. South Dakota also requires publication of the foreclosure. This publication must be done for a minimum of 23 days to satisfy the statute and provide sufficient time for the public to become aware of the foreclosure. The logic behind publication is that if the court orders the sale of the property, they want a healthy and robust bidding process to obtain maximum price for the property. South Dakota is a recourse state, so the procedures are designed to help minimize the amount that the borrower may owe the lender after the sale.
  4. The redemption period, the period during which the borrower may repurchase the property at the sale price, is 180 days unless the property is vacant. In the event that the property is vacant, the redemption period is 60 days. The shorter period is in place to protect the bank which may buy the property to cover its loan. If this occurs, the bank should be allowed to leave the house vacant for 60 days to give the borrower the chance to redeem and then sell the property without being concerned that the sale will be undone.

 

Rocky Mountain Bighorn Sheep in the Badlands.