Pending Home Sales Rise in August 2025: A Positive Shift for Fargo-Moorhead’s Market

By Christopher Leigh | September 29, 2025, 10:00 AM CDT

Fargo-Moorhead’s housing market, with median prices at $384,100 and a balanced 2.8-month inventory, showed promising signs in August 2025 as pending home sales rose 4.2% month-over-month and 3.5% year-over-year, per Fargo-Moorhead Association of Realtors (FM Realtors). Nationally, pending sales increased 4% from July and 3.8% YoY to an index of 78.2, per the National Association of Realtors (NAR), spurred by mortgage rates easing to 6.59% (from 6.72% in July). In FM, this uptick—strongest in the Midwest (4.5% MoM)—signals a fall rebound amid a sluggish year, with 1,000+ active listings (up 15% YoY). As a licensed real estate broker with Vision Realty, I’m seeing motivated buyers in North Fargo’s urban starters or Dilworth’s family enclaves capitalize on this momentum. Let’s unpack the data and strategies for FM buyers and sellers.

August 2025 Pending Sales Rise: National and FM Breakdown

Nationally, pending sales (signed contracts) climbed 4% MoM, up 3.8% YoY, per NAR Chief Economist Lawrence Yun, as rates fell to 6.59%. Regional gains hit the Midwest (4.5% MoM), South (3.2%), and West (2.8%), with the Northeast dipping 1.2%. Inventory held at 4.6 months (up 11.7% YoY), with 20.3% price cuts—the highest August since 2016.

In FM, pending sales mirrored this positivity: 4.2% MoM and 3.5% YoY, outpacing the national 3.8% amid our 15% inventory rise and 45-day median days on market (up from 30 YoY). Rates at 6.3% (Sept. 26, Freddie Mac) continue easing, boosting contracts in balanced ZIPs like 58102. “Lower costs provide relief, but high prices limit movement,” says Realtor.com’s Hannah Jones—FM’s $384,100 median (up 2% YoY) reflects this, but pending gains signal Q4 strength.

FM’s Market Amid National Sluggishness

FM’s rise contrasts August’s national existing sales dip (0.2% MoM), highlighting forward momentum: Pending contracts forecast 5-10% Q4 uptick, per Yun, as sub-6% rates loom (Fannie Mae). First-time buyers (28%, up from 26% YoY) drive this, while investors (21%) pressure affordable segments ($300K down 10% YoY). New-home sales surged 12% locally, outpacing resales with buydowns to 4.99%.

Our Midwest edge—22% below national medians ($330,500 vs. $422,600)—amplifies relief, with 1.8% YoY regional gains.

Strategies for FM Buyers and Sellers in a Rising Pending Market

For Buyers:

1. Act on Momentum: Pending rise signals Q4 surge; pre-approve with Gate City Bank for 6.3% rates.

2. Leverage Inventory: 15% YoY rise in 58102 favors $300K starters; target 20.3% price-cut listings.

3. Negotiate Concessions: Easing rates mean $5K-$10K credits for repairs.

4. Focus Midwest: FM’s lower medians aid affordability vs. Northeast dips.

5. Prepare for Fall: October’s 14.7% more listings (national best week) boosts options.

For Sellers:

1. Price for Pending: Align with $375K comps in 58103 to ride 4.2% MoM wave.

2. Stage Quickly: Cut 45-day averages with $1K-$2K investments.

3. Offer Incentives: Match new-home buydowns with $5K credits.

4. Target First-Timers: 28% buyer share seeks value in Dilworth.

5. Monitor Rebound: Q4’s rate dips could add 5-10% transactions.

Frequently Asked Questions

Q: Why did FM pending sales rise in August 2025?
A: 4.2% MoM from easing rates (6.59%) and 15% inventory; Midwest’s 4.5% gain led regions.

Q: Is FM on track for better sales?
A: Yes—3.5% YoY pending uptick forecasts 5-10% Q4 boost, per Yun.

Q: How do FM rates compare nationally?
A: 6.3% (Sept. 26) vs. 6.59% August; sub-6% by 2026 aids affordability.

Q: Will fall 2025 help FM buyers?
A: Absolutely—20.3% price cuts and 4.6 months’ supply favor negotiations.

Q: Are new homes leading FM sales?
A: Yes—12% surge vs. resale dip; buydowns to 4.99% attract buyers.

Conclusion

Fargo-Moorhead’s August 2025 pending sales rise (4.2% MoM) signals a positive shift amid national sluggishness, driven by falling rates and rising inventory. Buyers in North Fargo gain leverage, while sellers in Moorhead can thrive with strategic pricing. At Vision Realty, my broker expertise turns pending optimism into closings—contact us to navigate FM’s rebounding market.

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

References

• National Association of Realtors. (2025). Pending Home Sales Report: August 2025. Retrieved from https://www.nar.realtor/newsroom/nar-pending-home-sales-report-shows-4-0-increase-in-august

• 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/

• Freddie Mac. (2025). Mortgage Rate Trends: Q3 2025. Retrieved from https://www.freddiemac.com/pmms

• Realtor.com. (2025). Monthly Housing Trends Report: August 2025. Retrieved from https://www.realtor.com/research/topics/housing-trends-report/

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.