Spearfish, SD Housing Market
AI-powered market intelligence for the Spearfish, SD metro area.
PropertyIQ Scores
Spearfish, SD Market Analysis
Market Overview
Spearfish, SD has a PropertyIQ Score of 21 out of 100, signaling a weak housing market relative to broader conditions. This score is shaped by slowing home value momentum, a median days on market of 81 days, and a 17.5% share of listings with a price cut. The median home value in Spearfish is $449,760, which is about 40% above the South Dakota average of $321,574. At the same time, the median household income is $66,766, below the state average of $72,421. This creates a gap between local home prices and local earning power.
The rental market in Spearfish is notably stronger than the state benchmark. The rent index is $1,530, compared with $912 statewide. That suggests rental demand or rental pricing is elevated relative to the rest of South Dakota. Unemployment is 2%, matching the state average, which indicates a generally stable labor market. However, home value year-over-year change is just $1, meaning prices have essentially been flat. Population growth data is not available, so it is not possible to assess demographic-driven demand directly.
Overall, the market shows a mix of high property values and softening sales conditions. The low PropertyIQ Score points to weaker near-term conditions, driven by negative three-month price momentum and longer selling times, even as the labor market remains steady and rental prices sit well above state levels.
Key Trends
The first trend is cooling price momentum. The 12-month home value momentum is 2.85%, but the three-month momentum is -1.46%. This negative short-term reading indicates that prices have started to slip after modest annual growth, and the year-over-year home value change of $1 confirms essentially no appreciation over the past year.
A second trend is slower sales activity. Median days on market is 81 days, meaning homes are taking nearly three months to sell. In addition, 17.5% of listings have had a price cut, which suggests sellers are adjusting expectations to attract buyers. There are 287 homes for sale, which combined with the longer marketing time points to a market that is not moving quickly.
A third trend is an affordability gap. The median home value of $449,760 is roughly 6.7 times the median household income of $66,766. By comparison, the state average home value of $321,574 is about 4.4 times the state median household income of $72,421. This means Spearfish homes are considerably more expensive relative to local incomes than the typical South Dakota market.
A fourth trend is a rental premium. The rent index of $1,530 is significantly higher than the state average of $912. That can make the area more interesting for rental income, but it also reflects a market where housing costs—both ownership and rental—are elevated relative to state norms.
Who Is This Market For
Given the data, Spearfish appears better suited to long-term rental investors than to short-term flippers. The rent index of $1,530 is well above the state average of $912, which may support rental income, but the median home value of $449,760 requires substantial upfront capital. At the same time, the three-month home value momentum of -1.46% and flat year-over-year change of $1 offer little near-term appreciation for investors seeking quick returns.
First-time buyers are likely to face affordability challenges. With a median household income of $66,766—below the state average of $72,421—and a median home value of $449,760—well above the state average of $321,574—local incomes do not align easily with local home prices. Buyers who rely primarily on the Spearfish median household income may find fewer options. The market is more accessible to those with higher incomes or existing home equity, though specific buyer income data beyond the median is not provided.
Move-up buyers may be able to use existing home equity, but they should expect a slower sale process: homes are sitting for 81 days on average, and 17.5% of listings have had a price cut. Overall, the profile is more aligned with patient, income-focused buyers and investors than with buyers needing fast appreciation or first-time entrants.
Outlook
The near-term outlook in Spearfish is cautious. The three-month home value momentum of -1.46% is negative, and combined with an 81-day median days on market and a 17.5% share of listings with price cuts, conditions point toward continued softness or flat pricing in the months ahead. The 12-month momentum of 2.85% and low unemployment rate of 2% may provide some underlying stability, but the high median home value relative to local income limits affordability-driven demand. With 287 homes for sale and no population growth data available, the balance of inventory and demand remains uncertain. If current sales pace and pricing trends persist, sellers may need to remain flexible on price, while buyers may gain negotiating room. The data does not support expectations of strong near-term price appreciation.
AI-generated analysis based on current market data. Last updated September 25, 2026.
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Spearfish, SD market data
Spearfish, SD Housing Market Overview
Spearfish, SD's median home value is $450K, up 2.9% over the past year. Homes here sell in a median 81 days. Its PropertyIQ Score of 21 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
Understanding the Spearfish, SD housing market requires looking beyond headline price figures. The PropertyIQ Score reads both sides of market strength: Zillow price momentum across 3- and 12-month windows, and Realtor.com flow signals — days on market and the share of listings with price cuts. Together they predict how this SD metro is set to perform relative to the rest of its state.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Spearfish, SD's PropertyIQ Score of 21 runs below the Midwest norm.
For the Spearfish, SD market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been positive, with home values up 2.9% over the past year.
View Spearfish, SD's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Spearfish, SD a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Spearfish, SD currently scores 21, a weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $450K, up 2.9% over the past year. So whether Spearfish, SD is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Spearfish, SD?
Spearfish, SD's PropertyIQ Score is 21, indicating weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 21 places Spearfish, SD below its state benchmark.
Are home prices in Spearfish, SD rising or falling?
Home prices in Spearfish, SD are rising. Over the past year, the median home value increased 2.9%, reaching $450K. Over the latest three months, values slipped 1.5%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Spearfish, SD's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Spearfish, SD?
In Spearfish, SD, homes sell in a median of 81 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 17% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Spearfish, SD market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.