Rent or Buy? | VideoAlex Hagan | 1/7/2013
Finding a place to live in North Dakota can be a bit of a hassle, especially in the western part of the state. Rent prices have gone up and potential residents are left with a decision to make. Interest rates have never been as low as they are now. Residents are deciding between paying high rent prices that go up every year or purchasing a new home.
Knutson Homes has been building houses for more than 30 years. However, within the past couple of years, Cory Knutson has seen more houses go up than usual. "Housing market has picked up dramatically in the past year and a half or two years."
Builders like Knutson homes are selling houses much quicker than before. Inventory is scarce because newcomers to the state are always looking for a place to live whether it`s renting or buying.
Both Arlene and Ron Volk are sales associates for Century 21 in Bismarck. They say 2012 was their best year. "The rebound has been lead by real estate. Whether it`s commercial real estate, single family houses, duplexes, doesn`t make any difference," Ron said.
The question for potential residents is if they should rent or buy. Realtors say that interest rates are around three percent and now is the time to purchase a home.
"When you own your own home, it isn`t that you`re building equity on something, but you also receive tax benefits," Arlene said.
Rent prices are now soaring into the thousands and that`s more than many mortgage payments.
"That is a big reason to buy. You`re building equity on something," Arlene said.
Volk says if you plan to live here for more than two years than purchasing a home is better.
For Knutson, as long as the lots are available he and his contractors will keep building new homes. "We`re having a tough time getting enough lots in for builders to keep up with all the business."
And as long as interest rates stay low, the demand for new homes will continue across the state.
Both Arlene and Ron Volk say the fastest selling homes were around $150,000 about 10 years ago. Now it`s the ones over $200,000. They say people are looking at higher priced homes because interest rates are lower.