North Dakota Buyers Agents

Buying a home in North Dakota—what to know.

• Affordable cost of living: North Dakota’s housing market is appealing to buyers, featuring a median list price of $330,000, which is budget-friendly compared to the national median of $412,020. The Bismarck-Mandan area, in particular, stands out with a cost of living 3% below the national average, making homeownership more accessible and improving residents’ quality of life and financial flexibility.
• Climate: North Dakota experiences a continental climate with cold winters and warm summers. Be prepared for significant temperature variations and winter conditions, including snowfall.
• Job Market: North Dakota has a relatively low unemployment rate, thanks to its booming energy sector. Research employment opportunities in your field before moving to ensure job prospects align with your career goals.
• Low-Income Taxes: North Dakota is recognized for its minimal tax burden, attracting residents seeking a more favorable financial environment. With one of the lowest income tax rates in the U.S., individuals can keep a larger portion of their earnings. These low-income taxes are instrumental in sustaining an affordable cost of living, providing residents with enhanced financial freedom.
• Beautiful Natural Landscapes: North Dakota boasts breathtaking natural landscapes, featuring diverse and captivating views for outdoor enthusiasts. From the rugged canyons and vibrant rock formations of the majestic Badlands to the pristine beauty of Theodore Roosevelt National Park, where bison, wild horses, and prairie dog towns thrive, the state offers an array of natural wonders. The meandering Missouri River further enhances the region, providing excellent opportunities for boating, fishing, and camping.
• Friendly Locals: North Dakotans are known for their warm hospitality, neighborly demeanor, and strong community bonds. This welcoming and sociable atmosphere not only eases newcomers into local communities but also nurtures a deep sense of belonging that residents cherish.

North Dakota buyers agents provide Key Tips for Homebuyers in North Dakota in 2024:

• Save up for a downpayment: A downpayment is an essential requirement when buying a home. Saving up for a downpayment before purchasing a house can help you secure a better interest rate and lower monthly payments.
• Check your credit score: Your credit score can impact your mortgage approval and interest rates. Therefore, it’s essential to check your credit score before applying for a mortgage.
• Get pre-approved for a mortgage: Securing pre-approval for a mortgage can help you understand your budget and identify homes within your affordability range. Some realtors may even insist on pre-approval before showing you homes.
• Determine your budget: Before searching for a home, you need to determine your budget. Look at your finances and decide how much you can comfortably afford to spend on a house.
• Research the area: Research the area you intend to buy a home in. Look at the schools, transportation, and proximity to amenities such as shopping centers.
• Understand the closing costs: Closing costs can include fees such as loan origination fees, title search, and insurance, among others. Make sure you understand these costs before purchasing a house.
• Attend open houses: Attend open houses to get a feel for different houses and the market.
• Consider a real estate agent: A real estate agent can help you navigate the buying process and offer guidance on finding the right home.
• Get a home inspection: When you find your dream house, a home inspection can help identify any issues with the house before purchasing it.

Is 2024 a Good Time to Buy a House in North Dakota?

Absolutely! Presently, the market in Indiana has a scarcity of buyers compared to the available supply of homes. Soaring interest rates have deterred buyers, creating an opportunity to sidestep bidding wars. With the anticipated stabilization of mortgage rates in 2024, more buyers are expected to reenter the market, making it advisable to consider purchasing a house now. Should mortgage payments strain your budget, refinancing remains a viable option.

Implications and Trends

Average Home Prices: North Dakota’s median home price averages $270,000, reflecting a 5.1% year-over-year increase. The tight inventory in ND is expected to contribute to a continued marginal rise in the median sale price throughout 2024.

Home Sales: September 2023 data reveals a 6.2% year-over-year decrease in home sales, with only 376 homes sold compared to 401 in September 2022.

Average Rent Prices: Rental costs vary across the state, with Milwaukee tenants paying an average of $856. Williston residents paying $1,087.

Median Days on Market: The median days on the market for homes decreased by 70 days year-over-year. Standing at 109 days.

Pending Sales: The number of homes for sale has decreased by 11.8% year-over-year. With approximately 250 homes currently available in North Dakota.

Months of Supply: The average months of supply is 4, indicating a housing scarcity worse than the national market due to the high demand in North Dakota that the low supply cannot meet.

North Dakota Housing Market Predictions 2024

Return of Home Sellers: In 2024, sellers who remained on the sidelines in 2023 are expected to re-enter the market. Especially those with new job opportunities or seeking more affordable locations. Analyst Whitney, renowned for predicting the 2008 financial crisis, forecasts that downsizing baby boomers will contribute up to 30 million housing units.

Stabilization of Mortgage Interest Rates: Mortgage rates reached 7.79% in October 2023, marking a 23-year high. However, they dropped to 7.35% in November due to a softening labor market and a slowing economy. Despite predicting that rates will remain above 6%, analysts anticipate them to stabilize in the second half of 2024.

Increase in Home Buyers: Historically high-interest rates deterred buyers in 2023, but a following drop to 7.35% in November revived mortgage demand. With easing inflation and stabilizing rates, experts anticipate a comeback of house hunters.

Continued Rise in Home Prices: Home prices increased in top metros across North Dakota year-over-year. Reaching $270,000 in September 2023. Experts predict that home prices will continue to rise until the dynamic of low supply and high demand undergoes a significant change.

Rise in New Home Construction Sales: In September, 12.3% of homes purchased were new constructions, marking the highest since 2022. In 2023, with home builders offering $30,000 worth of concessions, it is anticipated that builders and sellers will compete for buyers’ attention in 2024.