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(MSN)   North Dakota tops national housing market. Difficulty: You have to live in North Dakota   (realestate.msn.com) divider line 25
    More: Obvious, North Dakota, oil boom, North Dakota State, housing market, Federal Housing Finance Agency, personal incomes  
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460 clicks; posted to Business » on 26 Mar 2014 at 10:33 PM (26 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



25 Comments   (+0 »)
   
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2014-03-26 10:03:25 PM
Yay, better late than never to the bubble party! This will end badly for us if and when the national economy picks back up in earnest.
 
2014-03-26 10:24:56 PM
So, from what I understand, the housing prices in ND are mainly being driven by a ton of people moving there for the oil boom faster than new housing can be built.  So, sure, those who owned before the boom are making out like bandits right now, and the boom may go on for a while if there's enough oil/gas to support it, but ND isn't Manhattan or SF - there's a crazy amount of land around, so eventually developers are going to catch up to the demand and the prices of the older homes from before the boom are going to plummet.

It seems like it's a great time for anyone who owns to really think about selling, renting for a bit, and then rebuying something far nicer once the inventory surges and the market corrects itself.
 
2014-03-26 10:34:04 PM
Repeat from the last wildcat boom?
 
2014-03-26 10:38:19 PM

phamwaa: Repeat from the last wildcat boom?


This oil boom is different. It will last forever. We'll all be millionaires. Give a dozen of those $100 shovels, there's oil in dem der hills.
 
2014-03-26 10:41:25 PM
North Dakota; Washington, D.C.; and Wyoming rank as the most stable

lol stable lol

Next year's headline - "North Dakota housing crash surprises nobody"
 
2014-03-26 10:55:31 PM

TuteTibiImperes: It seems like it's a great time for anyone who owns to really think about selling, renting for a bit, and then rebuying something far nicer once the inventory surges and the market corrects itself.


Rooms in houses are going for twice the mortgage rates of the entire house. House rents are 5x the mortgage.  Most of the people showing up aren't home buying material, so the people making out like bandits are renting whatever they have and taking advantage.  If you have an existing mortgage that's cheap, renting and buying a second home with the income once the market settles is going to get you more money than selling your cash cow now and spending money on exorbitant rent in the meantime.
 
2014-03-26 10:56:06 PM
I could take you to Kilgore or New London TX and show you what happens to an oil boom town that acts as if it's a permanent boom. Or I could show you the ghost streets of Longview, row after row of vacant lots where you can just about tell there used to be hastily built houses.

Actually, the ghost streets might be a cool district to hit with a metal detector. Hmm, maybe a GPRS sweep would be a bit much, but if you ever wanted to find the shallow grave of someone who up and disappeared 60 years ago, it's a fair bet.
 
2014-03-26 10:56:25 PM
From the projections I've seen, the new wells in ND won't be fully on-line until 2018.  So if they think there's a crowding problem right now, just wait.  The state's population is probably going to grow 50% in the next four years.
 
2014-03-26 11:08:38 PM

Incontinent_dog_and_monkey_rodeo: The state's population is probably going to grow 50% in the next four years.


20 people?

Wiki paints an interesting picture, although it lacks clarification onwhich of the censuses they're comparing:

Immigration from outside the United States resulting in a net increase of 3,323 people, and migration within the country produced a net loss of 21,110 people.
Of the residents of North Dakota, 69.8% were born in North Dakota, 27.2% were born in a different state, 0.6% were born in Puerto Rico, U.S. Island areas, or born abroad to American parent(s), and 2.4% were born in another country.


Seems kind of questionable. 2.4% outside the country? That's like one single apartment of Mexicans.
 
2014-03-26 11:13:56 PM
Didn't we have a "too bad it's in North Dakota" like a week ago?

/moved to Fargo in '11
//you can keep your above-freezing temps and your unemployment, I like making money
 
2014-03-26 11:20:15 PM

God-is-a-Taco: Incontinent_dog_and_monkey_rodeo: The state's population is probably going to grow 50% in the next four years.

20 people?

Wiki paints an interesting picture, although it lacks clarification onwhich of the censuses they're comparing:

Immigration from outside the United States resulting in a net increase of 3,323 people, and migration within the country produced a net loss of 21,110 people.
Of the residents of North Dakota, 69.8% were born in North Dakota, 27.2% were born in a different state, 0.6% were born in Puerto Rico, U.S. Island areas, or born abroad to American parent(s), and 2.4% were born in another country.

Seems kind of questionable. 2.4% outside the country? That's like one single apartment of Mexicans.


Somalis and other assorted Africans. A lot of Africans. My (black) wife was mildly concerned when I started thinking about moving here- she asked me if she'd be, like, the only black person. Turns out she didn't have much to worry about...
 
2014-03-26 11:54:28 PM
cdn.shopify.com
 
2014-03-27 01:50:01 AM

The Mulatto Maker: Didn't we have a "too bad it's in North Dakota" like a week ago?

/moved to Fargo in '11
//you can keep your above-freezing temps and your unemployment, I like making money


Yup not much different than Canadian folks moving to Alberta (Ft. McMurray specifically).  Hell as a Saskatchewan boy born and raised I could handle moving to S. Sask and crossing the border for good stable work close to home so to speak.
 
2014-03-27 02:48:59 AM
Seems like the perfect time for a person who lived there already, and owned a house or some land, and wanted to leave to cash in and go.
 
2014-03-27 06:43:58 AM
If Bloomberg wrote a story about multiple sclerosis, they would spin it to be about the joys of sitting down all day and the profit potential of home medical supplies.
 
2014-03-27 06:50:51 AM
If everybody is making money hand over fist in the oil boom, then why hasn't all the land within driving distances of say, Williston, been bought up by the workers?
It seems like it would be cheaper to buy a plot of land and put your trailer on it than rent at the crazy prices.
 
2014-03-27 08:20:25 AM
Difficulty: You have to live in North Dakota

Actually you don't.  You just have to build a house (or houses, if you really got the money) in North Dakota, and rent it out to the oil people.  Could make a chunk of money.
 
2014-03-27 09:04:01 AM

HotIgneous Intruder: If everybody is making money hand over fist in the oil boom, then why hasn't all the land within driving distances of say, Williston, been bought up by the workers?
It seems like it would be cheaper to buy a plot of land and put your trailer on it than rent at the crazy prices.


I think much of the work is fairly transient, within the region, so buying may tie most workers down too much.  What's going to eventually drive up prices for the land is all of the store owners and service providers flush with new cash over the next few years.
 
2014-03-27 09:12:14 AM

Lsherm: TuteTibiImperes: It seems like it's a great time for anyone who owns to really think about selling, renting for a bit, and then rebuying something far nicer once the inventory surges and the market corrects itself.

Rooms in houses are going for twice the mortgage rates of the entire house. House rents are 5x the mortgage.  Most of the people showing up aren't home buying material, so the people making out like bandits are renting whatever they have and taking advantage.  If you have an existing mortgage that's cheap, renting and buying a second home with the income once the market settles is going to get you more money than selling your cash cow now and spending money on exorbitant rent in the meantime.


Someone might argue that you can just rent an apartment, but everywhere I've lived, mortgage on a house (if you pay the minimum, which seems silly to me) is even cheaper than renting a studio apartment.

Property taxes are another story.  I used to live in Texas, where property taxes do their best to make up for the lack of a state income tax (though most people don't talk about them).
 
2014-03-27 09:18:52 AM
Came for the ghost town references, leaving satisfied.
 
2014-03-27 09:32:04 AM

NetOwl: Lsherm: TuteTibiImperes: It seems like it's a great time for anyone who owns to really think about selling, renting for a bit, and then rebuying something far nicer once the inventory surges and the market corrects itself.

Rooms in houses are going for twice the mortgage rates of the entire house. House rents are 5x the mortgage.  Most of the people showing up aren't home buying material, so the people making out like bandits are renting whatever they have and taking advantage.  If you have an existing mortgage that's cheap, renting and buying a second home with the income once the market settles is going to get you more money than selling your cash cow now and spending money on exorbitant rent in the meantime.

Someone might argue that you can just rent an apartment, but everywhere I've lived, mortgage on a house (if you pay the minimum, which seems silly to me) is even cheaper than renting a studio apartment.

Property taxes are another story.  I used to live in Texas, where property taxes do their best to make up for the lack of a state income tax (though most people don't talk about them).


There's always a 'gotcha'. My mortgage (the actual principal and interest part) is less than rent would be for a small apartment, and FL has a homestead exemption so the taxes are reasonable, but the insurance is farming ridiculous. My monthly escrow payments for home and flood insurance are close to the principal+interest amount.
 
2014-03-27 09:32:19 AM

Arkanaut


Difficulty: You have to live in North Dakota

Actually you don't. You just have to build a house (or houses, if you really got the money) in North Dakota, and rent it out to the oil people. Could make a chunk of money.


Which you would then need to plow back into the house to repair all the damage. I don't think a group of transient workers would take good care of a rental property, especially with an absentee landlord.
 
2014-03-27 09:53:19 AM
This didn't happen in Houston in the late 70's. Nope.
 
2014-03-27 04:03:02 PM
The local entertainment can be quite dramatic, though
hamilton350.com
 
2014-03-27 05:47:22 PM

Raoul Eaton: farkin' mushroom cloud


Was that the New Year's Eve "Oil BOOM" in Casselton?
 
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