Fargo-Moorhead Real Estate Market Update

Many people are asking, “How is the FM housing market doing?” 

Well as you may have noticed, the market is still busy. We are still low on inventory and are expected to be low for the foreseeable future. The biggest change to the market at this time is the cost of inflation. Not only have home prices increased about 9% over the previous year in the FM area, but interest rates have started to climb based on our federal government trying to head off drastic inflation nationwide.

The important thing to remember is, you can’t judge the FM market based on the national market or what you hear on the national news. Housing market conditions are all very localized. We are lucky to live in the FM area because we have always had a very stable market here compared to other parts of the country. We slid through the housing crisis of 2008 virtually unscathed in comparison. During 2008 the lowest drop we witnessed in our market was -2.5%. We regained that equity within one year. Our local market has always had more conservative lending and appraisal practices than other markets. After 2008 the federal government created lending and appraisal laws that are even more strict.

Some buyers are concerned about interest rates rising and wonder if they should still buy a home. The answer is yes, don’t wait, because the longer you wait the more equity you miss out on gaining. Homes will just be more expensive next year and the year after. In addition, if you choose to rent you will see no return on the rent you pay. Landlords are increasing rent to keep up with low vacancy rates and inflation. Yes, interest rates are higher, but you can always choose to refinance at a later date. Historically interest rates under 7% are considered excellent. 

So how is the FM housing market? Great!