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FARGO, N.D. (Valley News Live) – After a red hot summer for home sellers here in the FM area, there is change brewing in the real estate market.
According to local real estate experts, the market has slowed down off its peak, which some realtors say is typical for this time of year.
Although, it remains a seller’s market.
Shawn Ostlie is the President-elect for the North Dakota Association of Realtors, which is in partnership with the FM Area Association of Realtors.
He says the average sale price in the FM area is about $275,000.
That’s up 11% from last year.
Other factors impacting the market include a tight supply of building materials and the number of homes for sale.
“We’re nowhere near where we need to be as far as inventory nor as far as catching up for building on all their supplies. There’s still a lot of waiting time involved,” said Ostlie.
Ostlie also says realtors typically track inventory by the absorption rate, which is how long it takes for a home to sell.
Right now, the FM area’s rate is under two months. Last year at this time it was at more than three months.
Ostlie believes this is creating a deficit in inventory versus sales.
“Listing volume is down. the list of inventory is down. the interest rates have never been lower which incentivizes more buyers.”
Although there are fewer homes available, Ostlie wants to remind buyers to never be discouraged, as the market continues to recover.
“I would advise people to not be scared of it. You may not get your dream house in your first offer, but keep looking out there,” he said.
Ostlie says the market is in a better stage for buyers than in the spring and he expects the trend to continue into the winter.
If you are a buyer looking for a home, the fall Parade of Homes is scheduled for September 18-19 and 25-26.
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