The tide is definitely (and finally) shifting after higher and ever increasing interest rates keep pummeling the Northern Colorado real estate market. The action isn't some fast paced, furious back and forth, rather a slow and creeping standstill tug-o-war. Sellers are finally starting to feel the pain of fewer and fewer buyers in the market. It used to be you would put your home on the market and get a flood of buyers. Now that is reduced to a trickle. Not to be forgotten, buyers are feeling the pain too. Home prices are remaining generally steady (give or take a few percent here and there) while rates continue to increase, nearing 7.5% for exceptionally well qualified borrowers. Buyers have to commit to a high payment, with hopes that rates will recede once inflation is tamed, but the time table there is still unknown. If you're trying to sell and purchase, I've got a whole handful of strategies and tactics to make it work best, but patience, flexibility and market awareness will be your best bet. This market is for the "have-to" buyers and sellers.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Inventory Increases as Demand Wanes
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)
The Fort Collins area had a good August, all things considered. Median value came in at $590,700, which was nearly 3% higher than August of 2022. Sales were down 13% over the same time period, which is understandable. Fort Collins also had a major uptick in inventory over the summer as well but it needs to be put in perspective. Inventory is made up of new listings plus existing listings that haven't sold. May was the peak of new listings, and since then, it has turned sharply downward which means the majority of the inventory are homes that have carried over from previous months and haven't sold. Inventory is a good thing - more for buyers to choose from, less competition and fewer competing terms. But prices will level and drop with less demand and more inventory.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market looked pretty strong in August as well. Median value came in at $555,000, 3.5% lower than August of 2022, but not too terribly far off. Additionally, the Loveland market had the strongest August in the region in terms of sales, 179 detached units sold, just 9.14% lower than August of 2022. While there was a increase in inventory from about February through June, inventory has leveled off, and few new listings are coming on.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans area is continuing to have a ROUGH 2023. Sales were down 52% from August of 2022, indicating that demand is just not there, even for the very few listings available. Through August YTD, sales are down 36% as compared to last year. It is virtually impossible to catch up at this point. Prices also fell 3.5% from 2022, however, Greeley is not yet dipping down below $400,000. That is largely due to just how few homes are on the market. Greeley is a market that is very sensitive to economic changes - finances are less flexible, affordability is always at the forefront.
We are getting near the time of year where sellers have a decision to make: price their listing correctly, or withdraw their home through the winter months where demand is even slower and showings are more inconvenient. That may temporarily bring down inventory, but it will come right back on in the spring, hopefully with different demand conditions. It appears that many new listings will not be popping up over the next few months, so inventory should drop a bit and bottom out in December or January, which is typical.
PERCENT OF LIST PRICE TO SOLD PRICE
Even with the slower/lower demand, those who are attracting the best buyers are keeping their prices reasonable and competitive. Even with leveled off prices and high interest rates, offers (on average) are coming in only 1% off of list price across all 3 markets. As we head into colder months, sellers may be more and more desperate to offload their homes and concede value to the buyers, which is typical.
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