May sales figures are out and they are painting a picture of a difficult market in Northern Colorado, which is unusual during the peak selling season. There is "adequate" action and activity in the market, just not the fast paced machine we have been used to. Even in the interest rate restricted 2023 and 2024, buyers were quick to make decisions. Now, with essentially the same rate environment, buyers are hesitant, apprehensive and cautious as they tour homes. Showing activity is down as some buyers watch from the sidelines, waiting for price reductions. Buyers seem to have all the time in the world to wait, while sellers sit back, anxiously. Bottom line, the homes that are moving quickly are: well priced, turn key homes in the most desirable neighborhoods. The ones that have trouble moving are homes with projects or deferred maintenance, resale homes in new construction neighborhoods where they compete with builders, and homes that require a lot of creativity or mental gymnastics to fit the buyer's needs. There is still opportunity for every buyer and every seller as the market is much more balanced - but having the right expectation and level of patience is key.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Buyers Tread Carefully in Peak Selling Season
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)
Prices in Fort Collins are having a tough time breaking upward, and at the moment seem to be lightly receding. Let's hope this is not a months-long trend. Prices were down 6% to $610,000 in May. Keep in mind, the median value has been between $600k and $650k for the better part of 3 years, so this is well within normal value (in case you decide to freak out). Sales, on the other hand are up 12% as compared May 2024. Fort Collins has much more inventory than previous years, so increasing sales makes sense, while prices hover.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market had a rough may, similar to Fort Collins, where prices dipped 8.65% as compared to May 2024, down to $536,702. Again, keep in mind that prices have been hovering in Loveland between $525,000 and $575,000 for the last 2-3 years, so it is not necessarily alarming, unless we have months of gradual downward creep. Stay tuned here. Unlike Fort Collins, sales were essentially flat in May, but they are still up over 7% YTD as there is more inventory to be sold.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans market performed well in May, essentially status quo. Prices fell just slightly, 1.32% to $431,250, which is near the top of the range over the last 3 years, as all markets have been working sideways since interest rates broke beyond 6-7%. Sales were up, just a bit, 3.31%. Greeley remains the only city in the region to have a YTD increase in value, albeit just 1.16%. Because it is the most affordable option in the region, it is still attracting more value conscious buyers. Greeley is definitely not immune to downturns, but is currently doing well.
INVENTORY
Overall inventory is still increasing throughout all three major cities in the region. Each market is at or above peak inventory levels not seen since before 2015. It would appear that Fort Collins, Loveland and Greeley will eclipse that inventory mark easily in the next month, then it is just a matter of time before it peaks and falls in the late summer. If inventory levels increase indefinitely, it will be a problem for all sellers. But, new listings coming to the market are tapering off, and May is usually when we see peak "new to market" listings. Stay tuned here. June figures will be quite telling as to the direction of the market.
PERCENT OF LIST PRICE TO SOLD PRICE
Surprisingly, percentage of list to sold price hasn't fallen as much as the data might indicate. Keep in mind, when a home starts at $600,000, drops to $575,000, then drops again to $550,000, where it gets a full price offer is still a 100% sales vs list price ratio. It is not sales vs original list price, it is sales to current. So, there are a lot more price reductions than this would indicate. Fort Collins increased to 100% in May, while Loveland held steady at 98.9 and Greeley dropped from 100% to 99.3%. For reference, the worst these ratios have been in the last decade was in late 2023 where, on average, the region was at 97%.
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 kids, Hudson and Isla, or visiting with friends and clients throughout Fort Collins and Northern Colorado. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com