2016 has come and gone - what a wild ride it was! The story of the year was stifled inventory which has led to an increasing affordability crisis. Affordability is no longer just an 'issue' but is now a full blown crisis. With regulatory costs for new construction, along with increased costs in labor, construction materials, liability insurance, land and water fees, new homes are becoming increasingly more and more difficult to build and deliver affordably. A new year is here, and with it, more opportunities to solve our region's housing challenges. Here's our 2016 Northern Colorado real estate wrap up: can have a big impact on median value.
Can you catch the outlier in the home sales data? That would be Loveland/Berthoud, coming in hot with a 20% increase in sales over last January. Accounting for 15% of those sales were new construction homes scattered throughout the area. Again, the name of the game in Fort Collins is consistency - although it is consistent in the wrong direction. The name of the game in Greeley/Evans is volatility. Although sales in the area were down 19% from 2016, 2016 numbers were up from 2015 by 34%. It's hard to count on Greeley.
As the year moves along we'll wait and see what flushes out in Northern Colorado. There are no indicators of a cool off, slow down or reversal in home prices, and home sales will hopefully remain flat or improve ever so slightly. It pays to participate in this market now if you're able to. Interest rates have climbed but have leveled out, and there is still very strong demand and plenty of competition for prime listings. As the weather heats up, so will the market. Will new construction even make a dent? What do things look like in your neighborhood? If you would like a buy vs. rent consultation, a move up consultation or a downsize consultation, contact me, I'm happy to help you weigh the pros and cons and provide accurate information for you to make a good decision.