Big demand for homes as listings drops in Fargo-Moorhead

"Interest rates are at a phenomenal low rate right now, so it's really a great time to either build or remodel your home."

FARGO, N.D. (KVRR) — Right now is the time for you to buy or sell a house.

“Interest rates are at a phenomenal low rate right now, so it’s really a great time to either build or remodel your home,” Home Builders Association of Fargo-Moorhead CEO Bryce Johnson said.

Local mayors and the Home Builders Association of Fargo-Moorhead have designated June Homeownership Month. The association also cut the ribbon on its office renovation as part of National Home Remodeling Month.

“There is more buyer demand than we’ve ever seen with less supply,” Hatch Realty CEO and Owner Erik Hatch said.

As the economy is booming, so is the housing market. According to the Multiple Listing Service, there has been nearly a 35 percent increase in houses sold in the area in 2021 than 2020.

“We have the same amount of inventory give or take a couple of percentage points than we did this time last year. However, there are buyers of plenty,” Hatch said.

House listings have dropped nearly 44 percent this time than last year according to MLS. Owner and CEO of Hatch Realty Erik Hatch says the decline opens the door for homeowners to raise property prices. Where did this demand come from?

“So many people moving out of major urban areas. People who have been housing up in apartments feel like you’re in a big germ factor and you’re tired of staring at the same walls every day because you’re working from home now. So, there’s just this new robust push for real estate,” Hatch said.

Hatch says it’s going to be a while before there are enough houses for buyers.

“Our nation was in a big recovery time from the big housing crash in 2008, so because of that kind of lack of supply that’s there now, it’s going to be years before builders could get caught up,” Hatch said.