2011 Market Summary

For a PDF version, click here

The most popular question we are asked as Realtors^® is “How’s the Market?” - we LOVE it because we think people should know what’s happening in real estate in their own area.  We’ve broken down information by areas in our market.  If you want information on your specific neighborhood or if you have any questions, please ask your favorite Park Co. Realtor^® and he or she can get that information for you! 

Did Sellers Get Their Asking Price?
From our experience, we can say that 2005 & 2006 were the rare years when we saw sellers get their full asking price.  The truth in real estate is buyers determine a home’s value.  Our goal is to help our sellers competitively price their home so that they get as close to 100% of their asking price as possible.

Hot Areas: West Fargo, South Fargo, South Moorhead & Dilworth. West Fargo had several homes that did receive full asking price during the year. New construction activity is fueling that market area.

How Long Were Homes on the Market?
For the entire market, the average days on the market (ADOM) was 113 days or just under four months. As you can see there is quite a difference between areas and it can simply be chalked up to supply and demand.  As we continue to see growth, demand grows and there is less supply to meet the demand.

Hot Areas: West Fargo, Horace, Rural ND & South Fargo. Areas in Rural North Dakota and Horace typically have fewer homes for sale than other areas, this is why we see the shorter ADOM in these areas.  

What Are Homes Selling For?
The average sales price for the entire Fargo-Moorhead area market rose 2.58% to $165,960 in 2011. Much of that rise is due to an 11% increase in sales in homes priced $200,000-$500,000+.  If we haven’t said it before we’ll say it again - “WE ARE SO FORTUNATE TO LIVE IN THIS AREA!” We hear from my colleagues around the country whose markets are struggling and here we are with 2.5% appreciation! 

Hot Areas: Let’s just say the whole thing! Home styles and location have a lot to do with average sales price and no matter how you stack the cookies a cute 1950s rambler isn’t going to have the same value as a 2011 2-story.  New areas continue to evolve and older areas are being revitalized.  We have to credit the people here that take care of their homes, physically & financially and that is the KEY to our healthy housing market!

*Barnesville info is also included in Rural MN, but is broken out to highlight their specific numbers.

Source: Fargo Moorhead Area Association of Realtors compiled by Park Co. Realtors. Information is deemed to be reliable, but is not guaranteed.

Measure 2: A Funding Nightmare for North Dakota

Measure #2 is appearing on North Dakota's June 2012 ballot.  The measure states that it would eliminate property taxes, poll taxes and acreage taxes effective January 1, 2012.  At first glance, it sounds great - we won't have to pay property taxes anymore!

Let me say, that is about as rosy as it gets...if you don't like paying property taxes, I really hope you like paying income taxes and state sales taxes.  In addition, your bank will probably pass on some new fees to you, as part of the replacement funding for this measure comes from financial institution taxes, oil and gas production and extraction taxes, tobacco taxes, lottery revenues and "other" state resources.  The "other" state resources probably scare me the most. I wonder what state resources they are referring to. Ultimately, the vagueness of the entire measure is astonishing.

First, the measure does not provide a formula for replacing the what property taxes pay for - namely 50% of our schools' funding, park districts, water districts, irrigation districts, fire protection districts, soil conservation districts and "other" political subdivisions.  It leads me to believe that the writers of this measure are so unaware of what property taxes actually pay for that they had to include the word "other". One big "other" they left out is police protection.  (But hey, who needs that?)
  
Secondly, your county commission and city council would have no control over their own budgets.  The budgets would be determined “according to a formula devised by the legislative assembly.”  (I should also mention the wording states something along the lines that the political subdivisions can decide locally how to spend their allocation from the legislature.  I'm sure the proponents will use that wording as their defense for those who say it takes away local control). Glaringly obvious points – cities and counties would be at the mercy of a legislature that meets every other year. Did I also mention, the measure has NO FORMULA for funding nor any proposed formula?  The Legislature will just have to "wing it" when they convene.

School funding is guaranteed in the measure, however, there are two flaws – 1) No growth factor is included in the measure. 2)  It does not mandate that the Legislative Assembly maintain the same levels of funding to school districts that it maintained in 2011.  Basically, the legislature could decide to cut state funding every year for our schools if they wanted to.

Measure 2 would DOUBLE every city and county’s debt limit. Currently, a political subdivision’s debt is not to exceed 5% of the assessed value of taxable property. In the fine editing skills the measure’s authors have changed “assessed value” (since there would be no property tax) to “market value.” FYI - Market value is approximately twice the amount of assessed value and PERSONAL property would become part of the limit because “taxable property” is changed to “property” with no exclusion of personal property.  How do you feel about a county assessor coming into your home and assessing your personal belongings, not to mention the additional time and pay that would be needed?

Finally, the biggest red flag to me is that a measure that was basically written on two pages of paper has generated a ten page “analysis” of issues the measure raises by the Property Tax Measure Review Committee. 

I didn’t cover all of the flaws in Measure 2, these are just a few points that jumped out at me.  The North Dakota Association of Counties put together a fine list of resources on Measure 2.  Take a look at their website - http://www.ndaco.org/?id=497.

Whether you live a big city or have a farm with a dirt road, Measure 2 will have an impact on everyone and I'm not convinced it will be positive.  One thing is certain...it will be a funding nightmare for North Dakota.  

Source: Property Tax Elimination Initiated Measure – Analysis of Issues Raised by the Property Tax Measure Review Committee, prepared by the North Dakota Legislative Council Staff, November 2011.

Kristi Hardy
Director, Marketing Services
Park Co. Realtors
701.237.5031
kristihardy@parkcompany.com

Agency Options: What a Seller's Agent Can Do...

As it obviously states, the seller's agent represents the seller in a real estate transaction. 

If you are a buyer, the agent for a seller, is obligated to keep the seller's confidences, especially those having to do with price, term and motivation. (The seller's agent is always required to give you complete information about the property including warning you about any problems they know about or suspect.) 

The seller's agent is also obligated to tell the seller anything they know about your motivation or negotiating strategy.  If you do not to share this information with the seller, you would discuss it with the person buying the house with you, but you would not discuss it with me.  For example, you would not say to the seller's agent, "We'd like to make an offer of $100,000, but if necessary we would pay as much as $110,000." This is the kind of information the seller's agent would have to tell the seller.

As you can see, it's very important to keep your cards "hidden" until you understand your agency options.  

Later this week, we will cover buyer's agency, dual agency, appointed agency and non-agent or facilitator.

Happy Clients

Connie Driscoll had Jan Perry help her with the sale of her home and also to find a new home.  Here's what she had to say:

"Jan always assisted me in making price negotiations. She was right on top of things.  She was aware of properties for sale around me and how they compared to mine."  She also went on to say that she would most definitely recommend Jan Perry and Park Co. Realtors others.

Great job Jan and Connie, we hope you're happy with your new home!

Happy Clients

Kim Keller recently helped Kayla and Thomas Shaw sell their home and find a new home. Here's what they had to say:

"Kim did an excellent job helping us find the home we so wanted. She was patient and kind. She is part of the family and has done great work!"

Way to go, Kim!

November 2011 Market Update by Area

August 2011 Market Update

Park Co.'s Associates of the Month, Vicky Sunde & Scott Breidenbach offer their insight into the Fargo-Moorhead area real estate market.

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