March 3, 2026

This piece is sponsored by Amy Stockberger Real Estate.

By Amy Stockberger

A year ago, a lot of homebuyers in Sioux Falls ran the numbers and didn’t like what they saw.

Today, those numbers look different.

According to Zillow, a median-income household now can afford $30,302 more home than they could a year ago.

The reason? Mortgage rates have eased from nearly 7 percent last winter to around 6 percent and recently dipped to 5.99 percent.

That alone lowers the monthly payment enough to change what many buyers qualify for.

Here in Sioux Falls, the real question isn’t what’s happening nationally. It’s what this means for you, your budget and the neighborhoods you’ve been watching.

Let’s walk through what has changed and how it affects your next move.

You may qualify for more than you think

If you looked at homes in Sioux Falls last year and felt boxed in by your budget, it may be worth revisiting those numbers.

Mortgage rates averaged 6.96 percent in early 2025. And this week, they dipped to 5.99 percent. That lowers the monthly payment enough to increase what many buyers can qualify for.

Here’s the math for a $3,000 monthly budget:

• With a 5.99 percent mortgage rate, buyers can now afford roughly a $479,750 home.
• At the start of this year, when rates were around 6.2 percent, that same budget bought about $471,750.
• A year ago at 6.9 percent, it bought $446,000.

That’s an $8,000 gain in just the past few weeks and $33,750 more purchasing power than a year ago.

Note: The above example assumes 20 percent down, a 30-year mortgage, 1.25 percent property tax rate, 0.5 percent homeowners’ insurance rate and no homeowners’ association dues.

Of course, the only way to know what it means for your budget is to rerun the math based on today’s rates, today’s prices in Sioux Falls and your current income.

What this means for your plan in Sioux Falls

If you pressed pause on buying over the past year, this is a good time to look at your options again.

Buyers now need about $111,000 in household income to afford the typical U.S. home, down 4 percent from last year. Affordability is improving in 37 of the 50 largest metros.

If rates stay near 6 percent or under, affordability will continue to improve.

Here’s what that could mean in Sioux Falls:

• Checking what you qualify for at today’s rates.
• Expanding your search into neighborhoods that were slightly out of reach.
• Paying attention to homes that have been sitting and may have room for negotiation.

For homeowners, it also could mean scoring a lower monthly payment with a refinance of their mortgage.

The point is, you don’t have to rush. Or stretch your budget to the breaking point. Being house poor is not the goal. But you do want clear numbers and a simple plan.

Right now, the numbers are lining up in a way they haven’t in a while. Lower rates and slower price growth.

Affordability matters. But protection and long-term support matter just as much.

When you buy with us, you do not gain just purchasing power. You gain Lifetime Home Support™.

That includes free moving trucks and moving supplies, access to our VIP Club tool and party equipment, preferred treatment and pricing from our Home Support Team partners, access to our online discount center and ongoing support before, during and forever.

And if life changes after you buy, you are not stuck.

With our Love It or Leave It Guarantee, if you are not completely happy with your home within the first year, we will sell it for free.

If you are currently renting and need help breaking a lease to purchase, our Lease Buyout Program can help make the move possible sooner.

Lower rates create opportunity. The right strategy creates confidence.

If you are wondering what you can afford right now in Sioux Falls, the smartest first step is running the numbers based on today’s rates, today’s prices and your actual budget.

And if you want to understand what buying looks like with built in protection and Lifetime Home Support™, we can map that out too.

Once you have that clarity, your next move becomes much easier to decide.

Would love to chat at 605-376-6780, amy@amystockberger.com or if you prefer to meet via Zoom, here you go!