The cost of homes went up in Bismarck-Mandan in 2012.
According to data from the Bismarck-Mandan Board of Realtors, the average sale price of a single family home in Bismarck-Mandan and surrounding towns in 2012 was $209,581. In 2011 it was $181,063.
Houses are selling for an average of 99 percent of the owner’s asking price, said Kristi Bohl of Keller Williams Roers Realty and president of the Bismarck-Mandan Board of Realtors.
“It just seems like there are a lot more buyers out there,” she said. “Getting multiple offers drives up the price.”
In 2012, 1,180 single family units were sold in and around Bismarck-Mandan. In 2011, 1,212 units were sold. Including condos and townhomes, 1,561 were sold in 2012 and 1,509 were sold in 2011. Bohl said the average sale price of townhomes was $198,000. Condos went for an average of $151,000.
The price of building a home is up, too. Chad Moldenhauer, owner of K & L Homes, said the main two reasons for the price bump are higher land and labor costs.
Moldenhauer said lot prices went up 30 percent from 2010 to 2011.
“Two to three years ago for $50,000 you could have pretty much pick of a development,” he said. He added that now the price of a lot ranges from $60,000 to $90,000.
The average wage has gone up in the state, too. Moldenhauer has increased his employees’ wages by $3 to $4 per hour over the last couple of years and offers insurance after three months. He also has had to double his number of employees to keep up with demand.
In 2012, 926 single family permits were issued. In 2011, that number was 579, according to data from the city of Bismarck, city of Mandan and Morton County. Adding in apartments and other multi-family residences, those numbers were 1,127 permits in 2012 and 690 permits in 2011.
The total value for all of the single family permits in 2012 was $183,377,941, making the average home value $162,713. In 2011, the total value was $106,404,224, making the average home value $154,209.
“Even what you would consider a starter home is seeing a bump in the price,” Moldenhauer said.
Demand is another contributing factor. Bohl said homes in and around Bismarck-Mandan spend an average of 65 days on the market. Of all the single family homes sold in 2012, though, one-third sold in less than two weeks and it’s not unheard of to sell a home on the first day, she said.
“Of course, there’s always those homes that sell right away, but in my opinion there are a lot more,” Bohl said.
Moldenhauer said developers haven’t been able to catch up with the number of people wanting to buy homes. He said his customers used to have several lots to choose from. Now there is a lot of land being spoken for before a development is even completed.