Real Estate Market Update: Why Existing Homes Continue to Boom in Fargo-Moorhead
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
New Hot Residential Homes For Sale
Contact Shannon to Schedule your Home Showing time
Residential Home For Sale
IDX MLS IDX Listing Disclosure © 2025
The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity SM Program of the Regional Multiple Listing Service of Minnesota, Inc. The information provided is deemed reliable but not guaranteed. Properties subject to prior sale, change or withdrawal. ©2024 Regional Multiple Listing Service of Minnesota, Inc All rights reserved.
Existing homes for sale Fargo, ND are as popular as ever.
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 2024 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.
Why Existing Homes Are Booming
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.
Impact of Chinese Tariffs on Homebuilding Products
The U.S. tariffs on Chinese goods have impacted local home builders with a wide range of homebuilding products, particularly those that rely on imports from China. Key homebuilding products affected by the tariffs include:
-
Steel and Aluminum: Tariffs on Chinese steel and aluminum have led to higher costs for these materials, which are commonly used in framing, roofing, and other structural components of homes.
-
Cabinetry and Wood Products: Many cabinets and wood products (like flooring, plywood, and engineered wood) are sourced from China. Tariffs have raised prices on these imports, impacting interior finishes.
-
Plumbing and HVAC Equipment: Fixtures, fittings, and components for plumbing systems, as well as heating, ventilation, and air conditioning (HVAC) equipment, are often imported from China. Tariffs have increased the cost of these systems.
-
Appliances: Household appliances such as refrigerators, dishwashers, and washing machines that are manufactured in or include components from China are subject to tariffs, increasing costs for homebuilders.
-
Lighting and Electrical Equipment: Many lighting fixtures, switches, and electrical components are imported from China, and these products have seen price hikes due to tariffs.
-
Solar Panels: Tariffs have affected the cost of solar panels and related equipment, which are frequently used in energy-efficient homebuilding projects.
-
Tile and Stone Products: Ceramic tiles, stone countertops, and other surface materials sourced from China are also affected, leading to higher costs for interior and exterior finishes.
These tariffs result in higher overall construction costs, which can impact the affordability of new homes. Homebuilders may either absorb the added costs or pass them on to consumers through increased home prices
Advice for Homebuyers
The best advice for a homebuyer,is to consider purchasing an existing home rather than opting for new construction. Here’s why:
Rising Costs of New Homes: Due to tariffs, the cost of building new homes is increasing, with higher prices for materials like steel, aluminum, cabinetry, and HVAC systems. These rising construction costs are being passed on to buyers, making new homes significantly more expensive.
Labor Shortage and Regulatory Pressures: The homebuilding industry faces labor shortages and increasing regulations, further driving up the costs and slowing down the pace of new construction.
Special Assessments: In areas like Fargo-Moorhead, new homes often come with higher “specials” (special assessments for infrastructure), whereas many existing homes have little to no remaining specials, making them more financially attractive.
Value of Existing Homes: The increasing price of new homes will likely boost the value of existing homes, providing better value for homebuyers.
About Jim and Shannon – Modern Market REALTORS®
Jim and Shannon owners of Modern Market REALTORS® are known for their relentless work ethic, enthusiasm, and ability to create a positive buying and selling experience for their clients who often become friends. Modern Market REALTORS® knows that our success is not just due to this knowledge, but rather to the importance we places on building lifelong relationships with our clients.
Real Estate Market Trends in Fargo, North Dakota: A Comprehensive Guide
North Fargo Homes For Sale
