Minot Is The Place To Live!!!

There has been months of excitement and anticipation regarding the Minot real estate market and the appreciation in property values that comes with economic growth. While many of the reports nationwide continue the drumbeat of negative news and declining property values, western North Dakota continues to defy the national trends.

According to the National Association of Realtorsâ (NAR) Research Committee, the median existing single-family home price in the Midwest region fell approximately 7.9% to $142,700 in the first quarter of 2008, comparing to the same period in 2007. NAR continues to attempt to gather all relevant sales statistics as compiled from local and regional multiple listing services. Of the communities in the Midwest, gains showed strongest in Decature and Springfield Illinois with appreciation of 4.2 percent. The median price of a home in Decature was $79,400 and Springfield was $172,200; two very different markets showing very similar increases in price.

The very good news is that the market as reported by the Minot Multiple Listing Service (MMLS) showed much stronger gains. We are able to provide more relative and up-to-date data locally. In looking at the numbers from transactions closed between January 1 and June 1 of 2008, properties within city limits showed a median selling price of $122,200 with an average selling price of $133,400. The median price reflects an equal number of homes that sold above $122,200 and below. The average is the total dollar volume divided by the number of transactions. Either statistic is a valid measure of the market.

The stronger news to be proud of is that during the same period of the year 2007, the median selling price in Minot according to the MLS was $112,000 and the average selling price was $124,600….8.9% and 7% gains respectively. What this means is that our market should be considered one of the strongest markets in the Midwest, if not in the country.

There has been one change in the past month to be aware of. Interest rates for mortgages have increased noticeably. Although still relatively low compared to historical numbers, an increase in the interest rate has an impact on the monthly payment that is often overlooked. The concern should be for those buyers that have previously been approved for financing should talk to their local lender to determine what affects the increase has on their ability to get financing. Sellers should be made aware that their potential buyer will now have a higher house payment at a given purchase price than they may have had a month ago.