Minot Housing Prices (Minot AFB: real estate, 2009, foreclosure)

[shawn900]

What is going on with the housing prices in Minot and the surrounding areas? Since I moved away 3 years ago housing prices have gone up at least $50,000 if not more. Why are folks getting so greedy and trying to sell houses for so much money. For an average newer home your looking at around 225,000 -250,000. Wages in Minot can't support those kind of prices. I'm looking at moving back there but prices are more expensive than they are here in Florida, and you make less money in N.D. to boot. That's crazy. I'll have to look for some land but that is scarce and way overpriced it seems also. What is everyones opinion on this? Homeowners need to come back to reality as well as the realtors. Prices are going to have to come down or else what happens around the rest of the country is going to happen in Minot. What do you locals say?

[Roloff1976]

There is some oil activity, but mostly preparation for the 1,000 plus new jobs at the Minot Air Force Base. With these new jobs, there will probably be an influx of 2,000 or more people into the Minot area if spouses, families follow. Oil has slown down a little, but will probably be picking back up again. Minot is benefiting some from the oil boom going on in western ND, plus air force base, plus support for the new people at the retail level...housing is hard to come by.

[hindsight2020]

It's the Air Force. This happens to small air force towns. Income gap between military and non-military employment is great so the market is bubbled in to military transients..i.e. if the outgoing personnel didn't have the guarantee that another dupe is coming in to replace him then him/her would be royally screwed as the non-military employment base DOES NOT support the kind of prices these properties are listed for. It's a lose-lose for the permanent community, outside the tax base of course. Even with said 'guarantee', I know personally many folks who get PCSed and are unable to find buyers and end up sweating a mortgage on a 200K property...in Minot ND! People are incredulous as to how somebody could have such a noose in such an unusual RE market, but that's the reason. So they come down here for their next PCS and looking for people who are about to PCS to Minot to buy their house sight unseen.

Don't get me wrong, Minot AFB is great for the tax base of the town, God know the town wouldn't be a fraction of itself without it (sorry don't shoot the messenger), but I don't think it helps out the community housing wise, as non-military members are priced out of their own community.

Also, beware of this expansion, this is not the first time Air Force leadership creates flux among communities. There are dozens of examples of former SAC bases all over this nation that if you were to visit today you'd see the abandoned remains of what used to be a booming air force town. Minot had a proposed expanded squadron in the 90s and it fell through, this one will probably stick but it could very easily flux again in a decade's time, making your 200K minot mcmansions drop like a rock overnight. Look at Enid, OK as a prime example of real estate dynamics similar to minot, it's not win win.

[RehobothBeachDela_where]

Originally Posted by shawn900

Why are folks getting so greedy and trying to sell houses for so much money. That's crazy.

Good grief man, it's what the market prevails, it's not greed!

Are you going to tell me that if you owned a home there right now you would sell it for $50,000 less than what the market says it is, get real!

If your looking for a house in Florida now a days, they're some that are $200,000 less than a year ago, most are in foreclosure and they can't give them away!

My parents bought their first home for $13,000 in '66, why isn't the price the same today?

It's all relative!

[magiccity]

Hello shawn900,
The main reason for housing prices is due to demand and supply. During 2008, with the influx of oil people, companies, military, and local business expansion, supply of homes dropped down at one point to 100 homes. When supply is low and demand is up, prices rise. In 2009, I predict that with the new construction that is planned, the home prices should stabilize, but I wouldn't count on them going down much. If you are planning to move to Minot, the best time is right after Christmas, when the prices tend to drop some. This Spring, the prices will move up a little, as more people are out looking for upgrades.