Black Hills Market Trends: What Buyers and Sellers Need to Know in 2025
If you’re thinking about buying or selling a home in Custer, Hermosa, Hot Springs, Keystone, Hill City, or the surrounding areas, understanding the local market is key. At Aspen + Pine Realty, we keep a close eye on housing trends so we can provide our clients with smart, strategic advice — whether you're entering the market for the first time or looking to make a move this year.
Here’s a breakdown of what we’re seeing in 2025 across the Southern Black Hills real estate market, and what it means for buyers and sellers alike.
📈 For Sellers: Inventory Is Tight, and Demand Is Strong
In many of the communities we serve, inventory remains relatively low, especially for single-family homes and rural properties with land. This means sellers continue to benefit from a competitive market — particularly if your home is move-in ready, well-maintained, or located near outdoor attractions and amenities.
Key Seller Trends:
- High buyer interest in areas like Custer and Hill City, especially for homes with vacation rental potential.
- Rural properties and small acreages are in high demand among out-of-state buyers looking for space, privacy, and natural beauty.
- Homes near recreation areas, parks, or trails continue to command premium attention.
- Average days on market remain shorter than pre-2020 levels for appropriately priced homes.
Tips for Sellers:
Now is a great time to list if you're looking to
capitalize on current demand. We recommend working with a local agent (like our Aspen + Pine team) to help price your home competitively, market it effectively, and attract qualified buyers who are serious about making a move.
🏡 For Buyers: Competition Is Easing — Slightly
While prices have remained strong, the market has become more balanced compared to the peak activity of recent years. That’s good news for buyers, who may finally have a bit more breathing room to make thoughtful decisions — but it still pays to act quickly in certain price ranges and locations.
Key Buyer Trends:
- Interest in second homes and short-term rentals continues to drive activity, especially in Keystone and Hill City.
- Buyers are increasingly focused on energy-efficient homes, updated interiors, and proximity to outdoor recreation.
- Financing remains competitive, and lenders are working creatively to support qualified buyers despite national rate fluctuations.
Tips for Buyers:
If you're ready to buy, consider working with a local expert who understands
market nuances in the Black Hills. Our team knows where to look for
off-market opportunities, price shifts, and neighborhood trends that can help you get more value for your money.
🌲 What Makes This Market Unique?
Real estate in the Southern Black Hills is driven by a unique mix of local homeowners, retirees, remote workers, investors, and vacation home seekers. The diversity of buyers means that certain segments move fast — especially:
- Cabins and retreats in Custer and Keystone
- Family homes in Hermosa and Hot Springs
- Vacation rental-friendly properties in Hill City
With so many different buyer motivations, working with a hyper-local team that understands what drives value in each town is essential — and that’s where Aspen + Pine Realty shines.
Let’s Talk About Your Real Estate Goals
Whether you're buying, selling, or just exploring your options, Aspen + Pine Realty is here to help. Our experienced team, led by Broker/Owner Andrea Ronning, combines deep local knowledge with a strategic, full-service approach. We’re proud to serve not only Custer, Hermosa, Hot Springs, Keystone, and Hill City, but also clients across the broader Black Hills region.
📞 Contact us today for a personalized market analysis or to discuss how current trends might impact your next move.
Your next chapter starts here — and we’re ready to help you write it.
