North Dakota Housing Market Analysis - August 2024
The housing market in North Dakota for August 2024 presents a nuanced picture with varying trends across different metrics. The Median Sales Price for homes in the state stands at $289,200, reflecting a year-over-year (YoY) decrease of 3.7%. Conversely, the Median List Price has increased by 2.7% YoY, reaching $288,900. This divergence between sales and list prices suggests a potential cooling in buyer demand or increased negotiation power among buyers.
Price Per Square Foot metrics indicate a robust appreciation in property values. The median Price Per Square Foot has risen to $141, marking an 8.6% YoY increase. Similarly, the Median List Price per square foot has surged by 12.7% YoY, now at $146. These figures highlight a strong underlying value in the real estate market, despite the overall decline in Median Sales Prices.
Sales activity has experienced a downturn, with the number of Homes Sold decreasing by 9.0% YoY to 433 units. However, Pending Sales have shown a positive trend, increasing by 11.0% YoY to 504 units. This uptick in Pending Sales could indicate a potential rebound in closed transactions in the coming months.
New Listings have also declined, with a 7.8% YoY drop to 487 units. Inventory levels have seen a significant reduction, down by 24.7% YoY to 1,167 units. The Months of Supply metric, which measures the time it would take to sell all current listings at the current sales pace, has plummeted by 60.0% YoY to 2.7 months. This sharp decline in supply suggests a tightening market, which could exert upward pressure on prices in the future.
The Median Days on Market for homes in North Dakota is now 41 days, a 36.0% YoY decrease. This reduction in market time indicates that homes are selling more quickly than they were a year ago, further underscoring the competitive nature of the current market.
The average sale to list ratio remains relatively stable at 97.8%, with a slight YoY increase of 0.1%. The percentage of Homes Sold above list price has decreased by 2.7% YoY to 14.5%. Price Drops have remained unchanged YoY at 24.6%, while the percentage of homes going Off Market Within Two Weeks has surged by 38.8% YoY to 39.2%. These metrics suggest that while sellers are achieving close to their asking prices, fewer homes are selling above list price, and a significant portion of listings are being removed from the market quickly.
In summary, the North Dakota housing market in August 2024 is characterized by a mix of declining sales prices and inventory, alongside rising list prices and Price Per Square Foot metrics. The market remains competitive, with homes selling faster and a notable portion going off market swiftly. Buyers and sellers alike should be prepared for a dynamic market environment as these trends continue to evolve.
