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Home > Home Value Trends in North Dakota
Home Value Trends in North Dakota
By: Ashley Lichty
For months now everyone has heard about the crashing of the real estate market or slumping home value prices, thanks to the media and industry experts blasting doom and gloom predictions about the real estate market all over the place. The truth is, we've gotten so used to an unusually booming market, we forgot what a regular or slightly slow market looks like. The real estate market is definitely not as bad as it looks, though to get specifics, you have to look into individual areas of the market. Knowing what the nation's median home value is won't be much help if you're looking to buy or sell a home. (Though if you're curious, the median home value for the U.S. in 2006 was about $221,900).
Real estate is an investment, and a large one at that, so it's important to think about where the market and home value prices will be over a 10 year span when thinking of moving to a new area. By looking at the economy, employment rates, job opportunities and attractions of a particular area, you can get a much better idea of where home value prices and the market in general will be headed.
North Dakota (capital city: Bismarck) isn't a state often thrown about in the news, but one that has much to offer regardless. With a relatively small population at 635,867 in 2006 for a broad state, North Dakota has wide open spaces and wildlife enough for any adventurer. The state's economy is heavily agricultural, with wheat, cattle, barley, sunflower, milk and sugar beets being it's main products. North Dakota's main industrial services are food processing, machinery, mining and tourism. The varied economy and relative rural-ness of the state keeps home value prices at a relatively affordable price.
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Tourism is a major factor in the real estate market and home value averages of any area. The more popular an area, the more likely it is to see large growth of residents, and demand for housing in the area will lead to a booming market, so it's always good for a state to play up its tourism aspect. North Dakota has plenty of historical and cultural sites to offer visitors, with several different American Indian (including the Sioux) originating in the area. The state is full of adventure activities such as hiking, biking, camping, boating, sailing, skiing, wildlife viewing, fishing and much, much more. National and state parks abound and North Dakota has plenty of family friendly activities such as museums, arcades, go-karting, recreational centers, water parks, zoos, etc. Family attractions are always a huge pull for families, and the more family-friendly an area, the better off its real estate market.
With an unemployment rate of about 3.3% in April and an median household income of about $41,000 in 2005, North Dakota is not one of the wealthiest states in America, but it does have low costs of living. In April 2007, the median home value of properties sold was $325,831, meaning in April, half the homes sold were of higher home value while the other half were of lower. The median assessed home value was about $152,011 and the average home value of a single family home, condo or townhouse was about $164,601 in 2006, keeping homes affordable in the state.
Home value averages rose steadily from 2005-2006 and continue to do so, though more slowly through 2007. Cities and more populated areas tend to average higher home value prices and according to real estate professionals in the Bismarck area, the market still shows steady growth, with home value prices still increasing in numerous sub-divisions and a good balance of buyers and sellers entering the market.
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