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With the exception of lots of vacant land for building housing or for oil, have you guys seen a marked increase in home selling price or is it only rentals that are being inflated?
With the exception of lots of vacant land for building housing or for oil, have you guys seen a marked increase in home selling price or is it only rentals that are being inflated?
Home prices as well. An office building that was for sale for $450,000 2-4 years ago is on the market for $3.5 mil. The same is happening with residentials. Houses that were $150K are now around $300k. $400K homes are now $600K.
When I moved here in 05 I could have bought a 3bed 2 bath for around 70k. That same house is now 150-180k. Even the houses outside of Williston have shot up in price, despite the best efforts of the banks and appraisers to keep values down.
With the exception of lots of vacant land for building housing or for oil, have you guys seen a marked increase in home selling price or is it only rentals that are being inflated?
Dave, I own a small rambler home, 2 up, nearly finished basement. It is in a good neighborhood, near the hospital, but when I bought it in 2002 from the original builder, he had been renting it out for yrs, since the last boom. According to last yrs city assessment re: property tax value it has increased in value 3 times. We have not received this yrs property tax bill yet, but with what I see on this forum, I am a tad bit nervous about tax increase. We are planning to move back to retire there in about 10 yrs. Unless this boom chaos makes us change our mind.
Sorry no offence, but DUH! If there are no houses, of course property values go up. No logical way for banks,or appraisers to keep prices down? And, I have to ask, why would they? Banks make money lending money. Realtors make more money selling higher priced houses. For folks on here that talk about, their new found wealth, some in the $100,000 range and more to not invest in their own homes, even building a new one is beyond my understanding. Some of the rent prices are more than a mortgage pymts on a very nice home, especially with the tax break last couple yrs that gave many folks up to 8000 back. Yet ppl will rent. If ppl want to live in a community, grow their wealth working in that community, they should invest also. It shouldn't only be the homeowners paying thru taxes for so many needed school, roads and infrastructure improvements, especially over the long term. Share the wealth.....Share the burden....Just my opinion.
Sorry no offence, but DUH! If there are no houses, of course property values go up. No logical way for banks,or appraisers to keep prices down? And, I have to ask, why would they?
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They will try to keep the price from running to far ahead of what people can pay. The country is in a nasty financial bind and a lot of it was caused because banks loaned money on houses, knowing fully well the owners couldn't afford it and would upside down for 30 years. So they'll try and hold it back some just so it's not rediculously high. 1) they'd get back into the same bind they are trying to crawl out of, 2) nobody could afford, so houses wouldn't move when put up for sale. They'd be sitting.
Now, having said that, they try, but they don't completely succeed.
They will try to keep the price from running to far ahead of what people can pay. The country is in a nasty financial bind and a lot of it was caused because banks loaned money on houses, knowing fully well the owners couldn't afford it and would upside down for 30 years. So they'll try and hold it back some just so it's not rediculously high. 1) they'd get back into the same bind they are trying to crawl out of, 2) nobody could afford, so houses wouldn't move when put up for sale. They'd be sitting.
Now, having said that, they try, but they don't completely succeed.
I agree w/ you to a point. The "norm" in housing is not the "norm" in a boom-town. Not saying they don't try to keep it where things will sell, but you sure would qualify for a higher loan, if you're making $100,000. The median income must be much higher these days than the average, Looking at the stats on the CD home page. And seeing what ppl are making, and expecting to make in posts on here. Having said that, I am guessing that in a boom market, the values of a house are most controlled by what ppl are willing to pay. Not quoting, but recently I saw a mobile home that went for 149,000. Admittedly, I am not an expert in housing. But looking at my own property values, tripled in last couple yrs. I am venturing a guess that the market will level out at some point, with more homes being built in future. My 2 cents
I agree w/ you to a point. The "norm" in housing is not the "norm" in a boom-town. Not saying they don't try to keep it where things will sell, but you sure would qualify for a higher loan, if you're making $100,000. The median income must be much higher these days than the average, Looking at the stats on the CD home page. And seeing what ppl are making, and expecting to make in posts on here. Having said that, I am guessing that in a boom market, the values of a house are most controlled by what ppl are willing to pay. Not quoting, but recently I saw a mobile home that went for 149,000. Admittedly, I am not an expert in housing. But looking at my own property values, tripled in last couple yrs. I am venturing a guess that the market will level out at some point, with more homes being built in future. My 2 cents
What you say is very true. But most of the Real Estate brokers, inspectors, banks, etc... were in Williston during the last boom and they know that if the price goes over the top, those $100,000. jobs go bust before too long. They also know that when it does bust, or even when it levels out to where they are not hiring, the market is going to have a bunch of new houses that are going to be standing empty because when it levels out, those same folks are headed down the road to the next boom area. The houses they leave empty won't sell if the price is too high.
But it IS a false deal for them to try and control the prices because like you say, the demand does more for it, but they still try to keep it from climbing too fast, and too high.
too bad for all the people who were just living there getting by. They will literally have to relocate. Whenever you get tons of people willing to work 100 hours a week in an area where there's not enough room for them to live, you will have rampant inflation and home and rent prices.
If you want a place with reasonable home prices where there are still jobs, the area which I live would qualify.. eastern SD along I-29
What you say is very true. But most of the Real Estate brokers, inspectors, banks, etc... were in Williston during the last boom and they know that if the price goes over the top, those $100,000. jobs go bust before too long. They also know that when it does bust, or even when it levels out to where they are not hiring, the market is going to have a bunch of new houses that are going to be standing empty because when it levels out, those same folks are headed down the road to the next boom area. The houses they leave empty won't sell if the price is too high.
But it IS a false deal for them to try and control the prices because like you say, the demand does more for it, but they still try to keep it from climbing too fast, and too high.
Bankers can control it though and they should, as it is in there best interest. Look, unless people have a couple of hundred thousand dollars on hand they're most likely going to need a loan. Now people are free to ask anything they want for a house, it is the banks responsibility to have it appraised and only loan money based on what is worth. A current owner is free to ask $300k for his 2 bedroom dump, and he may well find some foolish smuck to pay that much for it, but the bank should only offer to cover what they think they can get back if the new owner walks away. Banks did try and do this at the start of the southern housing boom, but they were undercut by lenders willing to give second mortgages. I doubt that same madness will repeat itself in western ND.
Last edited by Velvet Jones; 11-22-2011 at 10:46 AM..
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