Almost every time I see a new prospective buyer (or friends and family inquiring about real estate) I am almost always asked if the market has finally adjusted to the Bakken slow down. Although Bismarck/Mandan is not at the epicenter of the oil decline which started in 2014, economic effects have certainly been felt here. Hitting the Bottom - Are We There Yet?Instead of a sharp crash in housing prices like areas more dependent on and closer to the oil activity, the average list price in Bismarck/Mandan has actually been quietly falling slowly over the last few years. The same has happened for the average sold price (with the exception of a slight uptick in Fall 2015). However, although prices continue to drop, they may soon be done dropping. This is because, for the first time in two years, the number of properties sold has actually started to increase. In other words, in terms of simple supply and demand, as inventory starts to decrease from more homes selling, prices will soon be starting to increase, Although one can never predict the future, prices are actually starting to drop below the price of new construction. A case in point is a house currently listed at 8116 White Oak Loop in a great east Bismarck subdivision. Often times buyers worry about the bank appraising the property for the value of their offer. The house did have an accepted offer of $540,000 a few weeks after it was listed, and the bank actually did appraise the value at $540,000. Unfortunately, the couple making the offer couldn't find a buyer for their own home and the White Oak Loop home eventually dropped to $499,900. A Buyer's MarketYou can find several opportunities like White Oak Loop on the market now, especially as buyers slow down their search over the winter and holidays, giving active buyers even more leverage! Based on the statistics above, it's clear we are now in a buyer's market in Bismarck/Mandan. How long will it last? No one has a crystal ball. But buyers who wait too long might be kicking themselves if they miss the sweet spot of housing prices dropping and sales improving. In 2011, home prices across the country took a hit in places like Florida and Phoenix. Today, the Arizona housing market is back on track. Those who bought during the sweet spot are already reaping the benefits.
If you're ready to buy your first home or next home, contact a REALTOR who can give wise advice on what kind of homes would be a good investment.
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AuthorWill and Laura Gardner, REALTORS® at Century 21 Morrison Realty, live with our children in the Bismarck / Mandan area. We hope these articles inspire you to invest in your real estate goals. CategoriesArchives
September 2019
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