With the average price of a house around 200 thousand dollars, the price increase of homes may have made buying a home more difficult than one might expect.
While prices in the near future do not seem to be dropping, Gary Brode tells us how the housing situation may be stabilizing.
After years of seeing property values rise spurred by a flood, an ongoing energy boom and growth of the Air Force Base, residential housing costs in Minot may have hit its ceiling. This according to one Minot realtor who says she's seeing the inventory for houses in the market increase.
(Kausha Bakka, Realtor, Preferred Minot Real Estate) "A year ago you would have come in and I would have said "oh there's 70 houses on the market" and right now we are looking at about 300 houses on the market, active. About half of that is new construction."
Only about 10% of these newly constructed homes are flooded homes that have been rebuilt. While the supply for residential homes is catching up with the demand, commercial building space is becoming the holy grail for real estate in Minot.
(Kausha Bakka, Realtor, Preferred Minot Real Estate) "It's interesting to see how many companies are still going to come here. Are researching coming here and there is such a shortage of commercial space at this point. That shows that a lot of people want to come here. We finally have some houses to put them in, but unless we get some more commercial space they're going to have a challenge coming here.
As it stands now, there are only a few commercial properties on the market. Large amounts of land for big companies to build on may be as scarce in Minot as commercial buildings in heavy traffic areas.
(Kausha Bakka, Realtor, Preferred Minot Real Estate) "These oil companies that are looking for these places to build there facilities are really trying hard to find the land because we don't have enough necessarily the land with infrastructure right now."
Apartment vacancy rates are up as high as 5% which has caused a slight decrease in rent for some complexes. However, Bakka expects rent prices won't be dropping.
(Kausha Bakka, Realtor, Preferred Minot Real Estate) "There is still definitely a demand. There is still people moving here. Everyday my phone rings with someone from a different state that wants to come here. "
Opportunity that comes with a high prices.
In Minot, Gary Brode, KX News.
Bakka was recently contacted by an owner of a major league baseball team about possibly purchasing real estate in the area.