Existing-Home Sales Dip in August 2025: What It Means for Fargo-Moorhead’s Market

By Christopher Leigh | September 26, 2025, 09:00 AM CDT

Fargo-Moorhead’s housing market, with median prices at $384,100 and a balanced 2.8-month inventory, mirrored national trends in August 2025 as existing-home sales dipped 0.2% month-over-month to a seasonally adjusted annual rate of 4 million—the slowest since 1995, per the National Association of Realtors (NAR).[10] Year-over-year, Midwest sales (including FM) rose 1.8%, but the overall pace signals a sluggish year, potentially the weakest in three decades without a fall rebound.[10] Locally, FM Realtors reports 1,000+ active listings (up 15% YoY), supporting prices at $384,100 (up 2%) while new-home sales surged 12%.[1] As a licensed real estate broker with Vision Realty, I’m helping clients navigate this transition in neighborhoods like North Fargo’s urban hubs or Dilworth’s family enclaves. Let’s break down the data and strategies for FM buyers and sellers.

August 2025 Sales Dip: National and FM Trends

Nationally, existing-home sales fell 0.2% from July to 4 million annually, up 1.8% YoY but on track for 1995 lows amid 6.26% rates and tight supply, per NAR Chief Economist Lawrence Yun.[10] Inventory dipped 1.3% to 1.53 million (4.6 months’ supply), with 20.3% of listings cut prices—the highest August since 2016.[10]

In FM, sales echoed this: A 0.2% MoM dip, with 1,000+ active listings (15% YoY rise) yielding 2.8 months’ supply.[1] Year-over-year, FM sales increased 1.8% in the Midwest context, but total pace lags 10-15% from 2022 peaks due to rates.[1] Median price rose 2% to $384,100, with 18% of listings reduced—stronger than national but signaling buyer leverage.[1]

New-home sales nationally jumped 21% MoM (800,000 annual rate), and FM mirrored with 12% gains, outpacing resales as builders offer buydowns to 4.99%.[20]

FM’s Resilient Market Amid Sluggish Sales

FM’s dip aligns with national weakness, but local strengths shine: 2.1% unemployment and 8% appreciation buffer against downturns.[1] Inventory’s 15% YoY rise (1,000+ listings) and 45-day median days on market (up from 30 YoY) favor buyers in balanced ZIPs like 58102.[1] First-time buyers held at 28% (up from 26% YoY), while investors rose to 21%—pressuring affordable segments ($300K starters down 10% YoY sales).[10]

Yun notes: “Declining rates and rising inventory should boost sales.”[10] In FM, sub-6% rates by 2026 (Fannie Mae) could add 10-15% transactions, especially in Moorhead’s family zones.[1]

Strategies for FM Buyers and Sellers in a Slowing Market

For Buyers:

1. Leverage Inventory: Target lingering listings (60+ days, 10% of FM) for $5K-$10K discounts.[1]
2. Get Pre-Approved: Secure terms with Gate City Bank to compete in new-home surges.[20]
3. Negotiate Concessions: 20.3% price cuts mean room for $5K closing credits.[10]
4. Focus on Midwest Strength: FM’s 22% lower medians ($384K vs. $422K national) aid affordability.[10]
5. Watch Fall Rebound: Q4 2025’s rate dips could spark 5-10% sales uptick.[10]

For Sellers:

1. Price Competitively: Align with $375K comps in 58103 to avoid delistings (up 12% Q3).[1]
2. Stage for Speed: Invest $1K-$2K to cut 45-day averages.[1]
3. Offer Incentives: Match new-home buydowns with $5K credits.[20]
4. Target Investors: 21% buyer share favors multi-family in Sabin.[10]
5. Monitor Equity: FM’s 8% appreciation protects wealth despite slower sales.[1]

Frequently Asked Questions

Q: Why did FM sales dip in August 2025? A: National 0.2% MoM drop mirrored locally; rates (6.26%) and 4.6 months’ supply slowed pace.[10]

Q: Is FM on track for its worst sales year? A: Sluggish but resilient—1.8% YoY Midwest gain; 1995 lows unlikely with 15% inventory rise.[1][10]

Q: How do FM prices compare nationally? A: $384K median (up 2% YoY) vs. $422K national; Midwest 22% lower aids buyers.[10]

Q: Will fall 2025 boost FM sales? A: Yes—declining rates and inventory could add 5-10% transactions, per Yun.[10]

Q: Are new homes outperforming resales in FM? A: Yes—12% sales surge vs. resale dip; buydowns to 4.99% attract buyers.[20]

Conclusion

Fargo-Moorhead’s August 2025 sales dip reflects national sluggishness, but our balanced market—with rising inventory and Midwest strength—offers hope for a fall rebound. Buyers gain negotiation power in North Fargo, while sellers in Moorhead can thrive with smart pricing. At Vision Realty, my broker expertise turns trends into triumphs—contact us to navigate 2025’s market with confidence.

Contact Vision Realty Phone: (701) 715-4747 Email: chris@visionrealty.us Website: www.visionrealty.us Serving Fargo, Moorhead, West Fargo, and beyond.

References

• [10] National Association of Realtors. (2025). Existing-Home Sales Report: August 2025. Retrieved from https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-0-2-decrease-in-august
• [1] Fargo-Moorhead Association of Realtors. (2025). Market Trends: Q3 2025. Retrieved from https://fargohomesearch.com/real-estate-market-trends-in-fargo-north-dakota-a-comprehensive-guide/
• [20] Freddie Mac. (2025). Mortgage Rate Trends: Q3 2025. Retrieved from https://www.freddiemac.com/pmms
• U.S. Census Bureau. (2024). Fargo-Moorhead Housing Data. Retrieved from https://www.census.gov/quickfacts/fact/table/fargocitynorthdakota/PST045223

Disclaimer

This article provides general real estate insights and is not intended as legal or financial advice. All data is based on publicly available sources as of September 2025 and subject to change. Vision Realty complies with all Fair Housing laws, promoting equal opportunity without regard to race, color, religion, sex, disability, familial status, or national origin. Consult licensed professionals for transaction-specific guidance.