Why existing homes will become more and more attractive to home buyers in Fargo ND 2020

November 7, 2018

Fargo ND, No one can really predict the future but my educated guess is that new construction is about to take a "butt kicking" not just in Fargo Moorhead but everywhere in the US. New round of tariffs are about to take hold. Tariffs will have a ripple effect on the home building industry. The new tariffs are adding $9000 to new home prices and that's just the beginning. Higher lumber costs, Labor shortage pushing salaries up, and growing regulations are holding US builders Back as they try and ramp up construction to meet the large demand. The next obstacle is interest rates, raising rates thru 2020 will put some breaks on buying. Fargo Moorhead also has a problem w "Specials" raising at a break neck speed. Giving existing home sellers a huge advantage with most having low specials or no specials left to pay.

All this uncertainty is great for existing home owners who will start to see  their property values go up faster as the price of a new home goes up fast. pricing many home buyers out of the new home game, for the foreseeable future.

So with all these head winds most frugal home buyers will head to existing homes. The largest reason being cost. in similar markets to Fargo moorhead, new homes typically cost a lot more then existing homes. In most markets  new homes are more expensive simply because they're new. call it "new home premium". Its the same reason why people will pay more for a new car vs a used car, or anything else that's brand new. The problem is once your in the home for a year its not new anymore.

So my advice is unless you have money to burn, avoid building your own home, and save the money for the future problems. If your a young home buyer think twice, there is so many great updated existing option in Fargo Moorhead. Good Luck!