North Dakota

North Dakota might be the biggest exception in America's real estate recession. It's one of only two states to actually see its' home sales increase in the latter half of 2007, and it just may make it through the housing market turmoil unscathed.

That isn't to say there isn't downward pressure on home pricing. These days it's harder to get a mortgage, which will influence North Dakota's housing markets in the future. But the state escaped the use of subprime mortgages and other alternative adjustable rate loans, which have damaged markets else where.

Fargo, which won fame for the movie by its name, has experienced solid appreciation for a decade as new businesses move to the area, producing a strong job market and low unemployment. The housing market in Fargo attracted new developments and a growing inventory of homes has slowed the market slightly.

But Fargo is forecast by Housing Predictor to remain at least a stable market through 2008, and appreciate 4.0% for the year.

In the capital city of Bismarck the housing market is even stronger with steady appreciation. It's the states second most populous city and despite North Dakota's loss of population over the past few years, Bismarck and other cities are holding their own. Most of the loss in population due to a nation that is moving to warmer climates has occurred in rural areas.

City	Forecast
Bismarck	4.6%
Grand Forks	3.8%
Fargo	4.0%
Minot	3.5%

The National Association of Home Builders says North Dakota is the bright spot in the country for new home construction. In Bismarck it's still a good time to build a home. A booming energy economy has helped insulate the state from national troubles in real estate. The Housing Predictor forecast calls for Bismarck to appreciate 4.6% on average through 2008.

In Grand Forks, where the Air Force has a base, the housing market is active with home sales, although slower than it had been the last two years. Few foreclosures have hurt the market place as has been the case in many other markets else where across the nation.

To a large degree the North Dakota real estate market has protected itself from the national real estate slump. Most of the mortgages made in Grand Forks have been VA and FHA loans, which are also popular throughout most of the state. Grand Forks is also forecast to appreciate in 2008 at 3.8% for the year.

In the winter North Dakota makes headlines for its freezing cold weather and no where else is mentioned more than Minot, which is often the coldest place in the nation. Minot is also the home of a large Air Force base and home to many service men and woman.

The economy is mainly driven by the military, but as a result of a strong statewide economy the community experiences a healthy real estate market, and is forecast to appreciate a modest 3.5% in 2008.