As 2017 unfolds, we are starting to see a really interesting development in Northern Colorado. As building remains tight, inventory of new construction homes and resale homes, for that matter, are hard to find throughout the region. I'm keeping my eye on the Loveland/Berthoud market, one of the areas where building is relatively strong, especially in the low to mid range markets. This is keeping appreciation at bay, good news for buyers, but not necessarily the best news for sellers. If you're interested in what's happening in your neck of the woods, please get in touch with me for a deep dive into trends, strategy and crystal ball gazing. It's all below in our June 2017 NoCo real estate market update.
As we saw in April, prices in Fort Collins keep screaming upwards to the $400,000 mark, primarily due to increased competition for low to middle level priced homes. A 13% increase in prices is not sustainable nor healthy, however, until market conditions shift or demand lessens, we will continue to see these price gains. Greeley is also "benefitting" from an extreme reversal in home sales from 2016, down over 34%. With so few sales and homes available for folks in Greeley/Evans, we can continue to expect price increases. What we're starting to see as prices increase in the Greeley/Evans area is buyers making the move up highway 85 to towns like Pierce, Eaton, and Ault - short drives to Greeley and Fort Collins. Loveland is the real outlier here, with a 33% increase in home sales from 2016, causing just a minor increase of 1.43% in median value over last year's numbers - this is healthy and sustainable. Keep in mind, Berthoud is included in the Loveland figures - with a handful of lower to mid-level priced new homes coming on the market at once. This year alone, new construction has accounted for over 30% of sales in Loveland/Berthoud, as opposed to Fort Collins at 17% and Greeley at 11%. The median value of these new construction homes in Loveland/Berthoud is only $366,000, so it isn't doing much to help drive values up.
As mentioned previously, the NoCo real estate market is always changing: expanding, contracting, or leveling off. Keeping on top of the market will ensure you are prepared when it's time to make a move, a shift in the market might be subtle and I'm here to help you navigate. I'd love it if you told your friends, family and co-workers about the interesting and important information I'm always working on - educated homebuyers and sellers are empowered, and I love working with smart and intelligent folks. Let's get to work.