North Dakota Housing Market: September 2024 Analysis
The North Dakota housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $286,300, reflecting a slight decrease of 1.3% compared to the previous year. In contrast, the Median List Price has risen by 3.2% year-over-year, reaching $299,100. This divergence suggests a potential gap between seller expectations and buyer willingness, which could be influencing market dynamics.
Price Per Square Foot metrics indicate a notable increase, with the median Price Per Square Foot rising by 9.0% to $137, and the Median List Price per square foot increasing by 6.1% to $141. These figures suggest that while overall sales prices have slightly declined, the value attributed to each square foot of property has appreciated significantly, possibly due to demand for smaller, more affordable homes or increased construction costs.
In terms of sales activity, the number of Homes Sold has decreased by 3.0% year-over-year, totaling 390 transactions. Pending Sales have experienced a substantial decline of 42.3%, indicating a slowdown in future sales activity. However, New Listings have surged by 17.0%, with 489 properties entering the market. This increase in New Listings, coupled with a 17.2% reduction in inventory, suggests that while more homes are being listed, they are being absorbed by the market at a slower pace.
The Months of Supply, a critical indicator of market balance, has plummeted by 60.0% to just 3.0 months. This sharp decline points to a market that is still favoring sellers, despite the overall cooling in sales activity. Homes are spending significantly less time on the market, with the Median Days on Market dropping by 77.0% to 42 days, indicating that properties are being sold more quickly than in the previous year.
The average sale to list ratio has seen a minor decrease of 0.2%, now at 97.1%, suggesting that homes are selling slightly below their asking prices. The proportion of Homes Sold above list price has decreased by 5.7% to 9.2%, further indicating a shift towards a more balanced market. Price Drops have increased by 11.5%, affecting 26.5% of listings, which may reflect sellers adjusting their expectations in response to changing market conditions.
Finally, the percentage of homes going off the market within two weeks has risen by 28.0%, now at 42.1%. This increase suggests that while the market is cooling in terms of sales volume, there is still a segment of the market where homes are in high demand and selling quickly.
Overall, the North Dakota housing market in September 2024 exhibits a mix of cooling sales activity and rising listing prices, with significant shifts in inventory and market dynamics. Buyers and sellers alike should remain vigilant and adaptable to these evolving conditions.
