6. South Dakota
8.6 percent increase in home prices
While closed sales in Sioux Falls, the largest city in the Mount Rushmore State, increased a mere 2.9 percent in September from last year, the number of pending sales offers a rosier outlook for sellers, up 41.3 percent. Potential homebuyers face tough conditions, though, with inventory shrinking 18.8 percent and the city’s home affordability index falling 9.4 percent.