Covid-19 has certainly made an impact on the real estate market. And North Dakota real estate has not escaped that impact.
With a tight supply of building materials and a scarce amount of homes available, real estate in North Dakota remains a seller’s market. But that doesn’t mean that potential homebuyers should give up. The real estate industry is in recovery, and it’s still wise to consider real estate investing.
To help you understand more, here is an overview of the top three real estate trends in North Dakota.
1. Home Prices Are On The Rise
The median price of a home in the Fargo-Moorhead area is now $275,000, which is up 11% from last year. A small inventory of homes and building materials are the biggest factor in this upsurge in home prices.
2. North Dakota Has An Increasing Enviable Foreclosure Rate
While the coronavirus has created an expected increase in this area, the fact remains that North Dakota still remains in a more enviable state than most other states. North Dakota’s foreclosure rate is one in every 33,915 homes, ranking it at number 46 in the foreclosure rates for all 50 states. The increase is still problematic, but North Dakota is still in a good place.
3. Demand North Dakota Real Estate Investing Is Still High
While this seems to be a seller’s market, it can only be a seller’s market if there is high buyer demand. In fact, increased prices seem to be increasing the demand to buy homes.
In the past, such as during the Great Recession, people have been more eager to buy a home with increased costs. And this era is following that trend.
While increased home prices seem problematic, low interest rates help homebuyers by increasing the size of the mortgage they can apply for.
The real estate market has improved for buyers since spring, and the improvement is expected to continue moving forward. So while this is a seller’s market, the buyer isn’t completely out of the market. Potential homebuyers may not get their dream home to start with, but they still have the potential to make a start as homeowners.
Homeownership standards and possibilities are specific to the individual, so the best advice is to get the help of someone from the North Dakota Real Estate Commission to evaluate your resources to determine what you can reasonably expect as a potential homebuyer in this market.
The team at Hatch Realty, all of whom have the necessary North Dakota real estate license, can work with you on that matter.
More Information On Real Estate
Now that you know some of the trends in North Dakota real estate, you have more information on being a seller or buyer in this interesting real estate market. For more on real estate, visit the Real Estate section in our Business menu where you can learn about anything from finding a good agent to avoiding first-time home hunting mistakes. Check it out today.