Rapid City ranks third for rise in home prices

U.S. home prices down 4 percent in the past year.

By Jeremy Fugleberg, Journal staff | Saturday, November 29, 2008

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While home prices drop in cities throughout the country, Rapid City is bucking the trend.

Home prices in the city climbed 5.4 percent in the past year, the third-highest rise in the country, according to federal data released this week.

Prices in Austin, Texas, rose 5.6 percent, and homebuyers in August, Ga., saw a 5.5 percent climb.

U.S. home prices dropped 4 percent over the past 12 months and sank 2.7 percent in the third quarter, according to the Federal Housing Finance Agency. The 4 percent drop over four quarters is the largest in the index's 33-year history.

"Prices continued their retreat in most areas in the third quarter," Patrick Lawler, the agency's top economist, said. "While housing affordability has improved and may have drawn in some new buyers, it seems that high inventory levels and buyer uncertainty have had the dominant impact on prices."

Representatives of the Black Hills Association of Realtors weren't available for comment over the holiday break.

Of the 20 cities with the sharpest price declines over the past year, all except Las Vegas were in California or Florida. The cities with the steepest declines -- all in California -- were Merced's 42.3 percent plummet, Stockton's 41.4 percent drop and Modesto's 36.7 percent fall.

The states with the biggest price jumps between the third quarters of 2007 and 2008 were North Dakota, at 4 percent; South Dakota, at 3.9 percent; Texas, at 3.2 percent; Alabama, at 2.8 percent; and Oklahoma at 2.8 percent.

The states with the sharpest price declines for the same period were Nevada at 20.9 percent; California, at 20.8 percent; Florida, at 16 percent; Arizona, at 13.5 percent; and Rhode Island at 8 percent.

Top 5:

Austin, Texas: 5.6 percent

Augusta, Ga.: 5.5 percent

Rapid City: 5.4 percent

Houma, La.: 5.2 percent

Houston, Texas: 5.2 percent

Bottom 5:

Vallejo, Calif.: -33.27 percent

Salinas, Calif.: -34.09 percent

Modesto, Calif.: -36.7 percent

Stockton, Calif.: -42.3 percent

Merced, Calif.: -41.4 percent

Source: Federal Housing Finance Agency