I bought in that area a year ago and have been pleased with my purchase. Prices have not come down much, if any, since then, but I think they will over the next 5 years — probably slowly. I, like you, needed a place to live and was tired of dealing with a landlord. Also the place I had been renting wasn’t that great, the neighborhood was getting worse, so I needed to move. I didn’t want to have the worry of a crappy landlord getting foreclosed on and the sheriff showing up at the door to boot me out, so I just went ahead and bought a place. If you pick wisely you will do well.
In Central SD there are a few things that can really help your property hold its value:
1) Being on a quiet street that looks nice, yet is close to shopping and highway access.
2) A 2-car garage, preferably side-by-side or 2 spaces in a condo garage.
3) Any kind of view or view potential.
4) 2 bedrooms, 2 full bathrooms.
5) Decent kitchen.
It can be tough to find a centrally-located place with all of those things that’s reasonably priced. Good luck!