According to the Black Hills Multiple Listing Service, some 2200 homes are currently for sale in the region. Approximately 1400-1500 are accounted for in the greater Rapid City are alone. Exceptional commercial growth and an ever-expanding community mean that new homes are cropping up yearly, while older and remodeled homes remain a strong presence. Close to 500 homes are listed for less than $150,000, making Rapid City a great choice for first-time home buyers. With real estate values predicted to increase 2.5-4% over the next few years, purchasing a starter home has become an investment opportunity for many, and makes the “dream home” a closer reality—investing in a smaller, less expensive starter house that is predicted to increase in value allows the owner more leverage when they’re ready to look for that perfect place to call home.

Interest rates are historically the lowest in decades, with most checking in around 4.25-4.5%. While the first-time homeowners tax credit is finished, these outstanding rates make mortgages a possibility for many young people. These rates, combined with housing prices averaging a 10-12% adjustment down, create an environment where buyers have not only a better value, but many more choices than ever before. Not only can buyers more easily afford their homes, but most can tailor their choices closely to their personal taste.

It’s not all a walk in the park, however. After the recent economic crises and enormous federal bailouts, lenders are giving a sharp eye to who qualifies for a new mortgage. Good credit is paramount; even small problems in your credit history will make qualifying for your mortgage harder than ever. Maintaining a high credit score and a low debt-to-credit ratio will make purchasing a home less of a headache and more of a celebration.

As a seller in the Black Hills, the real estate market can be a bit more unpredictable. While remaining strong, sales numbers are down a small percentage from this time last year. Some REALTORS are showing a slow start to the year, with fewer serious lookers and smaller turnouts to open house events (though some agents say that it can even be related to an unusually long, cold winter and a wet spring—who wants to move while freezing in three feet of snow?). The adjusted prices can place more pressure on certain homes and neighborhoods as well. Homes of comparable size and age are sometime seeing uncommon differences in asking price, making it difficult to move the buyer toward a more expensive home.

With all the economic uncertainties in the United States, the Black Hills remains fairly steady as a strong buyer’s market. New home construction can be seen around the Hills, and starter homes remain are available throughout the area. With sizes, styles, and prices running the gamut of real estate, there’s sure to be dream home for everyone. As the National Association of REALTORS says, “Rates are low, inventory is high. Now is a good time to buy.”