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In the sun room of his newly renovated, 7,700-square-foot mansion in Sioux Falls, S.D., Kevin Tupy and his listing agent gazed at the luxury homes sprouting up on the plains.
“That one’s worth $7 million,” said his agent, Liz Lloyd, pointing to a 12,000-square-foot brick mansion built around 2010. A few blocks away is a rustic-contemporary home that sold for nearly $2.5 million last year—the record-high home sale for Sioux…