The real estate market is driven by the principles of supply and demand, and few factors influence these dynamics as much as mortgage rates. The historic lows in mortgage rates experienced during the COVID-19 pandemic created unique conditions that still impact today’s housing market. For areas like the Black Hills of South Dakota—spanning Rapid City, Spearfish, and surrounding communities—these trends have significant implications for both buyers and sellers. The “Lock-In Effect” and Its Impact on Supply During 2020 and 2021, mortgage rates dipped to an unprecedented 2% to 3%, fueling a buying frenzy. According to Realtor.com, over 21% of outstanding mortgages as of late 2024 still carry rates below 3%, and 83% are below 6%. Homeowners who locked in these low rates are now reluctant to sell, creating a “lock-in effect” that limits the number of homes available for sale. In markets like the Black Hills, where inventory is already tight, this trend exacerbates the shortage of homes on the market. With fewer homeowners willing to trade their low-interest mortgages for today’s higher rates—currently hovering near 7%—supply remains constrained, intensifying competition among buyers. How Demand Is Affected Despite higher rates, demand for homes in the Black Hills remains strong. Areas like Spearfish and Rapid City attract buyers seeking scenic beauty, outdoor activities, and a high quality of life. However, affordability is a growing concern as higher mortgage rates increase monthly payments. For example, a buyer looking at a $500,000 home in Spearfish would pay significantly more in monthly payments at today’s rates compared to the historically low rates of 2021. This affordability gap has left many buyers waiting for rates to stabilize. A recent Realtor.com survey revealed that 40% of potential buyers would consider entering the market if rates dropped below 6%, and 32% would jump in if rates hit 5%. Black Hills Market Outlook As homeowners hold onto their low-rate mortgages, the limited supply in the Black Hills could keep home prices elevated, even with fewer transactions. This means buyers may face stiff competition for available properties in desirable areas like Rapid City and Spearfish. For sellers, these conditions create an opportunity to command premium prices, especially if their homes are in prime locations or offer unique features. However, those considering selling must weigh the trade-off of losing their low-rate mortgage. Looking ahead, easing inflation and falling mortgage rates could unlock more inventory. If rates were to dip below 6%, we could see increased seller activity in the Black Hills, helping to balance the market. A Strategic Approach to Buying or Selling Understanding the nuances of today’s real estate market is crucial. Whether you’re considering buying or selling in the Black Hills, working with an experienced real estate team can help you navigate these challenges. Our team at Christians Team Real Estate is here to provide expert guidance and insights tailored to your needs. For more information on current trends and how they shape markets across the country, check out the full report on Realtor.com. Are you ready to explore opportunities in the Black Hills? Contact us today for personalized advice and market updates.

When it comes to selling your home, making a great first impression is crucial. But what if you don't have the budget for a major renovation. Luckily, new data from Zillow and Thumbtack reveal that you don't need to break the bank to boost your home's appeal. "Certain low-lift projects can deliver a high payoff because they elevate a home in the mind of a buyer," said Amanda Pendleton, Zillow's home trends expert.  Here are the top 10 no-demo renovation projects of 2024 that can make your home stand out in the market and attract more buyers. #1—Window Box Who doesn't love a pop of color and greenery? Window boxes are a classic way to enhance your home's curb appeal. These charming containers for flowers, plants, or herbs can be installed just below the window sill, instantly bringing new life to your home’s exterior.  Zillow stats: Homes with a window box receive 48% more saves and 52% more shares per day compared to similar homes without this feature. Average national cost: $100 to $150 for professional installation and $15-$900 for materials   #2—Open Shelving Open shelving has become a hot trend in home decor, with closet systems and shelving installations up 31.5% year over year according to Thumbtack. It's a great way to display your favorite items while creating an airy and modern look. This project can be a DIY endeavor or you can hire a professional for a custom built-in. Zillow stats: Homes with open shelving receive 37% more saves and 45% more shares per day compared to similar homes without this feature. Average national cost: $275 for professional installation (excluding the cost of shelves)   #3—Painted Brick If you have a brick exterior, consider giving it a fresh coat of paint. A new color can completely transform the look of your home and increase its curb appeal. Zillow stats: Painted brick homes receive 31% more saves and 39% more shares per day compared to similar homes without fresh paint. Average national cost: $4,600–$7,600, including labor, material and equipment   #4—Vintage Charm Vintage elements can add a unique touch to your home. Think about incorporating vintage light fixtures, hardware, or even furniture. Not only does it add character, but it can also save you money compared to buying brand new items. Zillow stats: Homes with vintage touches receive 28% more saves and 31% more shares per day on Zillow compared to similar homes without them. Average national cost: Vintage decor costs vary, but you can find great pieces for less than $100. Vintage crown molding, for example, costs between $2 and $50 per linear foot and can make ceilings appear higher while adding architectural interest.   #5—Outdoor TV An outdoor entertainment area can significantly boost your home’s value. One easy way to create this space is with an outdoor TV. Installations have risen 12.7% year over year, making it a popular addition for many homeowners. Zillow stats: Homes with an outdoor TV get 28% more saves and 26% more shares per day than those without.  Average national cost: $175-$200 (this can increase depending on electrical capabilities and weatherproofing)   #6—Picket Fence It may be part of “The American Dream” stereotype, but a white picket fence is a timeless feature that continues to boost curb appeal. Added bonus: it provides a fenced-in yard for pets, a feature many buyers appreciate.  Zillow stats: Homes with a picket fence receive 27% more saves and 31% more shares per day than yards without a fence. Average national cost: $7–$45 per linear foot   #7—Pergola As outdoor living becomes more important (and summers hotter and hotter), adding a pergola can provide much-needed shade and a stylish gathering space. Zillow stats: Homes with a pergola get 20% more saves and 24% more shares per day than those without.  Average national cost: $3,600 for a 10-by-10-foot pergola, including labor and materials   #8—Fire Pit A fire pit can make your backyard a cozy retreat for summer nights. This DIY-friendly project can be completed at a low cost, providing an inviting outdoor feature. Zillow stats: Homes with fire pits see 19% more saves and 23% more shares per day than those without.  Average national cost: Under $1,000 (depending on the kit purchased) #9—Outdoor Sound System A sound system is another way to start (or add to) an outdoor entertainment area. A little music can help set the tone for any type of gathering. If you bundle this project with an outdoor TV, it could help you save on labor costs, as they can be set up at the same time.  Zillow stats: Homes with this feature see 18% more saves and 19% more shares per day. Average national cost: $500-$2,000 depending on the system #10—Smart Lighting Upgrade your home's lighting with smart technology. This modern feature can make your home more attractive and functional. Zillow stats: Homes with smart lighting get 18% more saves and 23% more shares per day than those without.  Average national cost: $308 for installation Conclusion These projects can make a significant impact on your home's appeal and market value. And the best part is, no reno needed!  “These features bring a wow factor to a home or they serve as a signal that a home is up-to-date, well-maintained or move-in ready,” said Pendleton. “When it's time to sell, these features may ultimately help a home sell faster or for more money, because there will likely be more competition for that home among buyers.” Whether you're looking to sell soon or just want to enjoy some new features, these upgrades are worth considering. Remember, small changes can make a big difference!

Thinking about sprucing up your home? Whether you're planning to sell soon or just want to enhance your living space, remodeling can be a great investment. But not all projects offer the same return—especially since home repair costs have risen 40% since 2019.  I know remodeling costs today can be disheartening, but the experts at Zonda, a housing market research firm, just released their 2024 Cost vs. Value Report, and it's packed with insights to help you maximize your return on investment (ROI). Curb Appeal is King When it comes to boosting your home’s value, exterior improvements are where it's at. According to Zonda, eight out of the top ten projects with the highest ROI are exterior upgrades.  Why? Because first impressions matter. A home with great curb appeal can stand out in the market, attracting more buyers and potentially selling for a higher price. According to Clay DeKorne, Zonda’s chief editor, exterior replacement projects continue to make the most sense when it comes to adding resale value. In today’s market, characterized by higher mortgage interest rates and homeowners with significant equity, these projects stand out for their high ROI. Cost vs. Value: National Average for Home Remodeling Projects Below are all of the home remodeling projects that Zonda analyzed for its report, ranked by highest return on investment.  Top 3 Projects with the Highest ROI This year’s report shows that the hottest projects for maximizing your ROI are actually the "unsexy" ones – the things that maybe don't grab headlines but definitely grab buyers' attention.  Just take a look at the top three on the list, each of which has an ROI well over 100%. Garage Door Replacement: 194% ROI. This project tops the list, almost doubling its return from last year. A new garage door can dramatically improve your home’s exterior look, making it more attractive to buyers. Steel Entry Door Replacement: 188% ROI. Replacing your front door with a steel one doesn’t just boost security; it also enhances the overall appearance of your home. It’s a simple upgrade with a significant payoff. Manufactured Stone Veneer: 153% ROI. Adding stone veneer to your home’s exterior can give it a luxurious and durable look. This upgrade is not only stylish but also highly valued by homebuyers. For those looking for small projects with a big impact, doors are a great place to start. "A new garage door or new entry door can make a pronounced difference," says Todd Tomalak, principal of Zonda Advisory. "It could be the thing that makes one house stand out against all the others, making the home worth a higher price." Of course, there are other not-so-glamorous upgrades that can add value. Things like a new roof, windows replacement, and HVAC conversion also made Zonda’s list.  Key Takeaway While a luxurious kitchen remodel might be your dream, the data suggests it won't necessarily pay off as much when it comes to resale value. That doesn't mean you can't enjoy a new kitchen! But if you're focused on maximizing your return on investment, target those exterior improvements and strategic interior updates first. Ready to get started with some upgrades but don’t know where to start? We have a contact list full of trusted vendors, pre-vetted for quality and affordability. These are the folks we call on and we're confident they can help you achieve your home improvement goals!