January is a month with a lot of energy. New year's resolutions, pent up energy after the holidays, and there's always the desire to get out and start the year strong. In the real estate world, stats from January are rarely indicative of much, it's a pretty quiet month overall. I want there to be a signal that begins a trend for the new year, but I think it's just too early to tell what's going to happen. As we saw in 2022, a lot can happen in a year, or even in 6 months. Markets can be strong, then weak. The good thing is that it seems like both price reductions and interest rates are stabilizing, and a more normal, stable market will return in the new year. See below for a more specific breakdown on the 3 major markets in Northern Colorado.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
2023 Starts Off With Mixed News
Jared Reimer - The Craft Broker
NORTHERN COLORADO MEDIAN HOME VALUES
NORTHERN COLORADO HOME SALES
FORT COLLINS (IRES AREA 9, INCLUDING FORT COLLINS, WELLINGTON, TIMNATH, & WESTERN LARIMER COUNTY)
Median values fell in Fort Collins again, but are just a hair higher than they were in January of 2022. Additionally, with a 22% drop in sales as compared to January 2022, it is apparent that demand has bottomed out. Keep in mind these sales are the result of contracts written in late November through December, AKA "no-mans-land", so low demand is expected. While there may be a bit further for prices to fall in Fort Collins, I don't foresee anything major unless inventory really builds up (which I don't expect either).
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market had a surprising pop in January, recording a median value of $582,138. This is 10% higher than January of 2022 and quite the outlier in the region. Sales were "better" than Fort Collins and Greeley, recording 106 sales - down just 15% from January 2022. What's interesting is breaking down this sub-market into Loveland and Berthoud. The Berthoud market has actually held fairly steady in the last 9 months, where as Loveland peaked in July 2022, receded some, then leveled off in the last quarter of the year. So much of the increases in the median value was Berthoud's input.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
Greeley/Evans had one of the first negative year over year returns in probably over a decade. Median value was down 3% as compared to last January to $411,670 with only 78 sales. My thought is that with a bit bigger of a sample size, things will stabilize more in the Greeley area.
Inventory is likely to bottom out for the year this month, as evidenced by the chart below. Inventory levels are usually their lowest in either December or January. Although inventory is as low as it'll be in 2023, we are still near the peak levels we saw in 2022 and 2021 so there are a reasonable amount of homes out there for buyers.
PERCENT OF LIST PRICE TO SOLD PRICE
A potential sign of price stabilization is this quick jolt of upward momentum in January, where sales and list price ratios went up. This means that sellers are either fairly pricing their homes and getting closer to list price with their offers, or, buyers are getting somewhat more competitive with each other, offering closer to list price. Whatever the cause, it's good to see this number edging closer and closer to the 100% range.
I provide the expert guidance, resources and confidence to easily make a move in Northern Colorado. Every real estate transaction is unique and I work closely with you to develop a plan, strategy and approach to get the most out of your next sale or purchase. If you, a friend or a neighbor have a real estate need, please get in touch with me | Jared@TheCraftBroker.com or 970.222.1049
About the Author: Jared Reimer is a native Coloradoan and an Associate Broker at Elevations Real Estate in Old Town Fort Collins. He’s a community advocate, business champion, blogger, leader, tireless volunteer, innovator, thinker and expert on all things real estate in Fort Collins and surrounding Northern Colorado. You’re likely to find Jared spending quality time outside with his wife, Kacie, and young son, Hudson, or sharing a beer or two with a friend throughout Fort Collins. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com