Driven by strong employment and one of the lowest foreclosure rates in the country, North Dakota housing markets remain the most stable in the U.S. Housing values have been protected to a major degree by the lack of fast money mortgages in the national downturn that had devastating consequences elsewhere.
The North Dakota economy is one of the strongest in the country with unemployment reaching only 3.4% in 2009, regarded as being in the range of full employment.
However, fallout from the financial crisis has had an impact on the economy, including some job lay-offs. One company laid-off 475 employees due to the souring national economy. But the small number of job cuts should have little overall impact.
Slower home sales were boosted by the federal government's first time home buyers tax credit in Bismarck, where the economy has also been aided by companies exploring for oil and natural gas. The energy markets in North Dakota remain some of the strongest in the nation, despite recent sluggishness in the industry.
Housing sales are projected to strengthen in Bismarck over the coming year as more newcomers move to the area for employment opportunities in the energy business. Average home prices are forecast to rise a modest 2.9% in 2010.
| City |
Forecast |
| Bismarck |
2.9% |
| Grand Forks |
2.2% |
| Fargo |
3.1% |
| Minot |
2.8% |
River flooding devastated homeowners along the Red River more than a year ago in Fargo, and after federal efforts aided local homeowners Fargo housing sales shot up for a short time driven by homeowners who had lost their homes to flooding.
The micro-market boom in Fargo has passed, and the economy is holding up. Home sales should be boosted in 2010 by new residents seeking jobs. The local housing market is forecast to appreciate 3.1% in 2010. Fargo was on a building boom until the credit crunch hit, but new home builders are expected to increase new starts in the spring.
The surplus inventory of homes listed for sale in Grand Forks has been reduced as buyers took advantage of federal tax incentives. Grand Forks saw many new home buyers from its military base take advantage of the first time tax credit. The expansion of the credit to move-up buyers may also act to boost the market during the early part of the year. Grand Forks home prices are forecast to climb 2.2% by year's end.
In Minot, which often records the coldest temperature during winter cold snaps, the housing market is also showing strength with active sales. The government tax incentive and U.S. Department of Agriculture Rural Development mortgages have helped the market retain its strength.
The agency saw a 25% rise in home mortgages in North Dakota in 2009 and the program is projected to increase again in 2010. Housing Predictor forecasts Minot average home prices to rise 2.8% in 2010.
