I’ve had a passion for real estate as long as I can remember. One of my favorite quotes that exemplifies this passion is “The market is always right.” This quote can apply to any market-based system, most commonly affiliated with the stock market, and is believed to have originated from Jesse Livermore, legendary Great Depression-era stock market investor. The quote neatly sums up “supply and demand” economic forces that ultimately dictate value of a commodity; in this case, real estate.
A quick refresher in economics tells us when a commodity’s supply exceeds demand the value decreases. And, conversely, when demand exceeds available supply, the value increases. Markets are continually searching for “equilibrium”, where supply and demand are in balance. Currently Fargo-Moorhead’s real estate market is experiencing diverging trends within different price points. There seems to be a temporary abundance of higher priced homes giving buyers more bargaining power and leading to weaker prices. Alternatively, there continues to be insufficient supply of lower to median priced homes resulting in continued rising prices. Thomsen Homes is the area’s leading single-family home builder in median price points $200,000-400,000. In fact, over the past decade Thomsen’s dedication to quality craftsmanship and competitive pricing has helped their home values appreciate better than other newly built homes.
According to the Fargo-Moorhead Area Association of Realtors, historically, FM’s market has remained relatively stable with average annual appreciation in the high single digits. In fact, during the Great Recession of 2008, the FM Area’s average home sales price decreased just 1.9% while other markets around the country lost nearly 50% of their value. While markets may be a function of logic, human emotion can often inject significant volatility into markets.
The future of the local market looks bright as the FM area continues to attract new residents and businesses. The area is becoming a globally-recognized hub for high paying sectors like tech, healthcare, and agribusiness. A vibrant downtown, night life and family activities are also contributing to FM’s success attracting new residents from across the nation. Thomsen Homes remains the public’s Favorite Local Builder by keeping current on housing trends from around the country and offering attractive designs to fit any budget!