Top homes sales of 2023 reveal luxury market that's trending up

Real Estate

Top homes sales of 2023 reveal luxury market that’s trending up

Jan. 18, 2024

The three most expensive home sales reported last year in the Sioux Falls area exceeded $3 million, illustrating a high-end market that keeps pushing prices higher.

The top 20 list of sales ranges from $3.7 million to $1.5 million.

This is the second year of offering a top 20 look at homes sold in Minnehaha and Lincoln counties. Typically, we’ve done a year-end list recapping the homes selling at or above the million-dollar mark. It started with 12 homes in 2018 and grew to 74 homes in 2022, which is when we shifted to the top 20. That list had properties ranging from $5 million to $1,425,000.

“We’ve definitely seen the higher-end price point in general still move,” said Kate Patrick, board president of the Realtor Association of the Sioux Empire Inc. “The numbers and stats looking at $1 million and above have been strong.”

It has even caused the industry to reconsider exactly what should be considered a “luxury” home, she said, although there’s no clear consensus around it.

“I think it’s probably evolving a little bit,” she said. “That will continue to change.”

The high end of the market appears to be starting the year strong. Pending sales for homes listed at $1 million and above are up 15 percent compared with the same time last year, Patrick said. At the same time, the inventory of homes at $1 million and above has increased 69 percent. Sellers of those homes are receiving 97 percent of original list price.

“When you have buyers in that price point, the interest rates maybe haven’t affected them,” Patrick said. “It’s a piece of the puzzle, but they have more freedom to still move forward.”

Some buyers don’t take out a mortgage, and others put enough money down that “the remaining loan balance just isn’t as affected,” she said, adding that buyers continue to come into Sioux Falls from other markets.

Some custom homes that were built just a few years ago also are starting to hit the market for resale, in addition to some owners who bought and renovated, then cashed in on how the homes had appreciated.

“I just had a listing close where they bought a few years ago and completely renovated the main level and were surprised … seeing the value increase,” Patrick said.

The No. 1 sale in 2023 at $3.7 million sits along a pond in the Arthur Estates neighborhood south of Bakker Crossing Golf Course. The 6,600-square-foot house has four bedrooms and five bathrooms and was custom-built in 2017 on a 1-acre-plus lot. Features include a home office, theater room and exercise room. Outside, there’s an in-ground pool and a pool house. A covered porch has a gas fireplace and electronic screen wall.

The No. 2 home sold for $3.65 million and sits on a 1-acre lot along the third hole at Prairie Green Golf Course in The Grand Prairie development. The 7,300-square-foot house has four bedrooms and five bathrooms and was custom-built in 2019. The home has four patios, an elevator, six-stall garage and more than 75 windows, all with powered shades. It has access to the neighborhood’s clubhouse, pools and courts for tennis and pickleball.

The property transfer information comes from the Minnehaha County Director of Equalization Office and the Lincoln County Register of Deeds Office. Addresses are for Sioux Falls unless noted.

Here’s a look at the top 20 home sales for 2023.