Published January 15, 2026

Real Estate Trends: What's going on in Hermosa, SD?

Written by Colleen Parsons

According to recent Zillow data, the average home value in Hermosa is around $520,900, reflecting modest year-over-year growth of about 2.2 % as of late November 2025. Zillow
Other third-party market estimates place median values closer to $620,000–$623,000 with very slight annual increases (~0.2 – 0.5 %). Prop:Metrics
Long-term historical data highlights that Hermosa has seen significant appreciation over several years — roughly 120 % increases since 2016, making it one of the stronger performing small markets in South Dakota due to limited supply and proximity to both Rapid City and the Black Hills.

Takeaway: Prices remain elevated relative to historical norms, but recent short-term gains have been moderate rather than dramatic.

Recent Redfin data shows some conflicting short-term sales figures, including a reported median sale price of around $290,000 in a recent month — down approximately 22.7 % year-over-year — though this may reflect an unusually small number of sales in that snapshot and high variability month-to-month in a small market.
Overall inventory remains limited, which has historically supported higher price levels in Hermosa. This trend mirrors broader South Dakota housing patterns, where limited listings and strong demand keep prices steady even if transaction volumes fluctuate.
Days on market tend to be longer here compared with larger metro areas, suggesting buyers are being more selective or that inventory isn’t turning over rapidly — again common in lower-supply markets.

The broader South Dakota market is growing slowly but steadily overall, with state-wide median home prices up modestly year-over-year.
Hermosa’s unique appeal — including proximity to recreational amenities and Rapid City employment centers — helps maintain buyer interest and sustain property values relative to neighboring towns.

For Sellers:

Properties in desirable areas remain strong assets.
Modest appreciation suggests it’s still a seller’s market, but buyers may have more negotiation room compared with the extreme price surges of recent years.

For Buyers:

Expect relatively high price levels compared with other small towns in South Dakota, but steady demand means that well-priced homes move — and the slower pace can offer a bit more time to make decisions.
Inventory constraints mean opportunities don’t appear very often, so staying connected with local listings and agents is key.

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