Summer 2025 Market Update: Custer, SD

 Custer, SD – Summer 2025 Market Snapshot

Price Trends & Market Conditions

• In July 2025, homes in the city of Custer saw a median sale price of about $408,000, down 18.2% from July 2024 ($499,000)

• Meanwhile, Custer County overall had a median sold price of ~$419,000, reflecting a 14.5% decline year-over-year

• Zillow reports a Custer ZHVI (Zillow Home Value Index) around $476,570, up 3.9% over the last year, though this includes seasonal variation and broader trends outside recent sales figures Zillow+1.

• Historically, Custer homes have appreciated over 160% since 2012, reaching an average near $468,700 in 2025 businessinsider.com+14

Market Speed & Competition

• Average time on market for Custer city homes is approximately 61 days, with the broader county averaging 66 days—both slightly improved from the prior year barrons.com+9

• The city market is showing clear buyer-friendly trends: about 50–57% of homes sold below asking price, only ~17% at list, and the remainder over list.

• Several recently sold homes illustrate this dynamic: a home sold 5% over list in just 31 days, another sold 7% under asking in 55 days, while a $1.95M property lingered 358 days before closing slightly under list — underscoring how location and pricing impact outcomes.

Supply & Listings Dynamics

• The number of active listings in Custer city rose from 48 in June to 61 in July 2025, up 27% month-over-month.

• Custer County listings grew from 56 to 70 active homes in the same period, a 25% increase, signaling rising inventory across the region.

 Comparison Summary: Custer vs. County

 Local Market Insights & Buyer/Seller Strategies

Buyers

• Significant negotiating power exists—over half of all homes sold for less than list.

• With growing inventory and longer market exposure, buyers can wait for favorable pricing, especially on mid-priced and larger properties.

• Quick action may be still required for well-priced or centrally located listings in the heart of town or near tourist zones.

Sellers

• Pricing appropriately is more crucial than ever: homes priced competitively may still attract offers in 1–2 months.

• In rural or high-end segments (e.g., tourist cabins or equity homes), showcasing features and staging becomes vital to differentiate amid rising listings.

• Some sellers may prefer withdrawing over dropping price; however, motivated pricing usually yields better results in this shifting market.

 Custer in Context

Custer remains a key niche in the Black Hills real estate scene—popular among retirees, vacation‑home seekers, and lifestyle buyers drawn to amenities, proximity to attractions like Custer State Park, and its scenic small-town vibe Home Stratosphere. Compared to nearby counties and towns, the local market is seeing sharper declines in recent sales, but long-term value gains remain strong.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Want to know if now is the right time for you to buy or sell?

Trust your local real estate experts: Lewis Realty. 

605-673-5885 | lewisrealtyblackhills@gmail.com | www.destinationblackhills.com