Fargo, ND-MN Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Fargo, ND-MN, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The HPI covers single-family properties that have been sold at least twice since January 1975.

As of the end of 2019, the HPI for Fargo was 178.7, up 2.8% from 2018. This means that home prices in Fargo have increased at a slightly faster pace than the national average over the past year. However, when compared to other cities in the region, such as Minneapolis and Duluth, Fargo's housing market has been relatively stable.

One reason for this stability may be due to the strong economy in the Fargo metro area. The unemployment rate in Fargo is just 2%, well below the national average of 3.9%. Additionally, wages in Fargo have been growing at a healthy clip of 4% per year over the past few years. This combination of low unemployment and strong wage growth has helped to support housing demand and prices in Fargo.

Another factor that has likely contributed to stable home prices in Fargo is the relatively low level of home equity borrowing relative to other parts of the country. In 2019, just 4% of all mortgage originations were home equity lines of credit (HELOCs), compared to 10% nationally. This suggests that homeowners in Fargo are not tapping into their equity as much as homeowners elsewhere, which helps to keep prices more stable since there is less pressure to sell if borrowers need to liquidate their equity positions quickly.