For months, everyone has heard about the housing market crash or home price crash, thanks to industry insiders and the media spewing gloomy housing market predictions everywhere. The truth is that we have become so used to an unusual booming market that we forget what a regular or slightly slow market looks like. The real estate market is definitely not as bad as it seems, although to get the details, you have to look at individual areas of the market. Knowing what the median home value is in the country won’t help you much if you’re thinking of buying or selling a home. (Though, if you’re curious, the median home value in the US in 2006 was about $221,900.)
Real estate is an investment, and a big one, so it’s important to think about where market prices and home values will be in 10 years’ time when thinking about moving to a new area. By looking at the economy, employment rates, job opportunities, and attractions in a particular area, you can get a much better idea of where home prices and the market in general will head.
North Dakota (capital city: Bismarck) isn’t a state that often makes the news, but it has a lot to offer nonetheless. With a relatively small population of 635,867 in 2006 for a large state, North Dakota has wide open spaces and enough wildlife for any adventurer. The state’s economy is heavily agricultural, with wheat, cattle, barley, sunflowers, milk, and sugar beets being its main products. North Dakota’s main industrial services are food processing, machinery, mining, and tourism. The varied economy and relative rurality of the state keep home prices relatively affordable.
Tourism is a major factor in the housing market and average home values in any area. The more popular an area is, the more likely it is to see a lot of resident growth, and the demand for housing in the area will lead to a booming market, so it’s always good for a state to highlight its tourism aspect. North Dakota has many historical and cultural sites to offer visitors, with several different American Indians (including the Sioux) originating from the area. The state is full of adventure activities including hiking, biking, camping, boating, sailing, skiing, wildlife viewing, fishing and much, much more. National and state parks abound and North Dakota has many activities for the whole family including museums, arcades, go-carts, recreation centers, water parks, zoos, etc. Family attractions are always a big draw for families, and the more family-friendly an area is, the better its real estate market will be.
With an unemployment rate of around 3.3% in April and a median household income of around $41,000 in 2005, North Dakota is not one of the wealthiest states in the United States, but it does have a low cost of living. In April 2007, the median value of homes sold was $325,831, which means that in April, half of the homes sold were worth more while the other half were less. The median assessed home value was approximately $152,011 and the median value of a single-family home, condominium or townhome was approximately $164,601 in 2006, keeping housing affordable in the state.
Median home values rose steadily between 2005 and 2006 and continue to do so, albeit more slowly through 2007. Cities and more populated areas tend to average higher home prices and, according to real estate professionals in the area of Bismarck, the market still shows steady growth. , with home value prices still rising in numerous subdivisions and a good balance of buyers and sellers entering the market.