2007 was a geat year for real estate in Fargo-Moorhead area

2008 starts with great promise for real estate in the Fargo-Moorhead region.  Unlike many parts of the country, our market had a solid year in 2007, with the Fargo-Moorhead Area Association of REALTORS® (FMAAR) Multiple Listing Service statistics showing bright spots, which included increased sales activity in segments of the market.

If you add up the total sales prices of all categories of real estate sold through our MLS, you get the total "dollar volume." The total "dollar volume" of homes sold on the FMAAR's MLS for 2007 was $541,928,054 compared to $522,120,472 in 2006. That's up nearly 20 million dollars worth of property sold, for an increase of 3.79%. That's much better than most of the nation, since sales are down in many parts of the country.  Almost the same number real estate transactions closed in both years on our MLS... 3,529 home transactions in 2007 compared to 3,531 home transactions in 2006.

FYI - Each home sold is 2 transactions...a sale and a purchase. Most homes have REALTORS® involved on both sides of the transaction, although a REALTOR® will sometimes sell an unlisted home, so it will count as only 1 transaction)

Existing (previously owned) homes fared better than new construction in 2007 in our market.  The total "dollar volume" of existing homes sold on the FMAAR's MLS for 2007 was $406,011,010 compared to $377,727,102 in 2006.  That's up more then 28 million dollars, for an increase of 7.48%.  A very healthy market for existing home sales.

New construction homes did not do as well in 2007 sales.  The total "dollar volume" of new construction homes sold on the FMAAR's MLS for 2007 was $97,710,431, compared to a healthier $112,417,421 worth of new homes sold in 2006.  Sales volume dropped 13.08% for the year.  Even so, however, our overall totals of both new and existing homes was still up in 2007 compared to 2006, as reported above.

The number of closed transactions for new construction our our MLS was down 18.47% from 655 in the year 2006 to 534 in the year 2007.

FYI - the total MLS volume includes some categories in addition to homes, including vacant lots, parcels of land, lake property and mobile homes, which equals about 7.3% of the closed business in 2007.  That's why the figures for new homes and existing homes don't quite add up the the MLS totals at the beginning of this article.

Although new construction figures were down, our overall market remained strong in 2007, showing continued strength for 2008.  Although appreciation has been flat to slow in the past 12 to 18 months, our activity is still strong. The buyers continue to buy and sellers continue to be able to sell their home with the help of REALTORS®.

Interest rates in January have dropped again to near record lows, in the 5.25% to 5.625% range.  It makes it a very affordable time for buyers to become homeowners and invest in their future.  It also makes it a great time for current homeowners to sell and then buy their next home.  Here's to a prosperous 2008!

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