A Changing Market

BY AMY HULLET

Afew years ago, buyers in the BismarckMandan real estate market couldn’t afford to wait long to make an offer on a home — and the offer needed to be strong to compete with other offers. Today’s buyers have more choices. The inventory of residential properties has doubled since 2011 when the market saw some of the tightest numbers in years. Still, today some properties are seeing multiple offers. Consider too that because buyers have options, nearly 100 more homes are under contract today than in 2011.

Depending on individual circumstances, some buyers are taking their time to make a decision and write an offer. Add to the mix that buyers have become more particular about the homes they purchase. Most buyers are looking for movein-ready homes in a certain price range and in a neighborhood that fits their lifestyle. And they’re looking for a wide variety of features and upgrades in their homes. Clients are looking for two-story homes, ranch style homes, a place where they can retire with less maintenance. There are those who want space and acreage, some want the charm of older homes, and still others are looking for the latest and greatest of features and finishes. Current buyers represent all generations from millennials to boomers.

As sellers are adjusting to a market with additional inventory, Realtors are providing more counseling and perspective to align sellers’ expectations. Depending on property types and price ranges, some listings will be on the market longer than others. We always keep in mind, however, that all it takes is the right buyer at the right time — and that could come within hours after a property hits the market, or six months later.

On the flip side, buyers also require guidance on finding homes and making offers. With additional inventory, buyers might think offers well below asking price are acceptable. These “low ball” offers can offend sellers and cause them to reject the offer entirely without considering negotiating. Using comparable property sales and other statistics should be the basis for presenting serious offers to sellers.

A diverse economy has spared BismarckMandan from the market fluctuations happening in western North Dakota. An employment base that encompasses medical, education (at all levels), manufacturing, government, utilities and other businesses has allowed the area’s real estate market to maintain average sale prices on par with 2015 and a 5 percent increase in the number of residential properties sold through July 31.

On the new construction spectrum, building permits are up 5 percent from last year. Valuations of the permits are at $77.6 million for this year, a 10 percent increase from 2015.

While affordable housing continues to be a challenge in much of North Dakota, all buyers have options. First-time buyers can struggle with finding properties in line with their budgets and their expectations. It’s critically important for buyers to visit with a mortgage loan officer to see how much they will be qualified to spend on a home before beginning to shop. Current listings range from $23,000 to $2.8 million. Interest rates continue to be running historically low, which is a plus for buyers.

When we hear national reports on real estate and housing markets, we cannot assume the same is true for our own communities. All real estate is local.

Yes, there are changes in the market. The good news is that it’s not bad, it’s just change. PB

Amy Hullet President, Bismarck-Mandan Board of Realtors amy.hullet@century21.com