Home Prices Plummeting In Oakes ND
During the onset of the pandemic, home sales nationwide definitely hit a slump. But the rebound has been underway for quite some time. 24/7 Wall St. reports that between January 2020 and January 2021 typical single-family homes have increased 9.1%. Interestingly, there are many cities in North Dakota where home values have actually declined.
Generally if your population declines, so do home values in the community. Oddly, according to the article, home prices in Oakes, ND have decreased 8.8% while their population actually increased 4.3%. Similarly in Carrington, ND home prices have dropped 5.3% while their population increased 5.6%. Other cities in the state experiencing a decrease in home values over the past year are Minot, Jamestown, Grafton, and Grand Forks.
One factor that could drive existing home prices upward is the rapid rise in the cost of lumber. KFYR-TV produced a story about the skyrocketing price of lumber and how it's affecting new home construction. The supply chain is still disrupted by the pandemic and it will continue to send up the cost of new construction. This from the National Association of Home Builders...
Lumber prices have skyrocketed more than 180% since last spring, and this price spike has caused the price of an average new single-family home to increase by $24,386 since April 17, 2020, according to NAHB standard estimates of lumber used to build the average home
With lumber prices going through the roof this is going to be a tricky year for home builders. 180% is a remarkable spike and I would have to think existing homes will become much more attractive to buyers.