We have reached the midpoint of the Summer and typically, this is when the market is at it's maximum volume, but this year, things seem pretty muted and honestly, a bit disappointing. While rates seem to have peaked, they are still perceptibly "too high" for many cash strapped buyers. Affordability in Northern Colorado has been a major concern over the last decade, but it has only really hit home when the cost to borrow has increased exponentially within the last year. All things being equal, Northern Colorado has weathered the interest rate storm fairly well, as prices are still holding strong - at least in Larimer County.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Mixed Signals for Northern Colorado Real Estate
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 the largest uptick in inventory from May, up 18%+ which is helpful for those picky buyers looking for the right property. Increases in inventory also helps spread the demand out over more homes so competition is less fierce, and bidding wars or above-list offers are minimized. But, even with more inventory, prices held firm at a median value of $617,500, down just under 2% from June 2022 - things are holding firm even in a higher interest rate environment. What does that mean for Fort Collins? It means that the city and the housing stock is still very desirable and that there are strong, well qualified buyers looking for homes. Sometimes attractiveness of community trumps negative economic variables. Sales were down 25% from this time last year, as the 2022 buyers rushed to get properties before rates popped up.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud area had a good month, with a moderate increase in inventory (14%) from May, buyers are out looking for homes in a somewhat more affordable community as well. Median value's for the area held tight at $540,000, down just 1% from June 2022 levels. Sales were down significantly, nearly 35%, from June 2022 as well.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans area is having a tough time with poor inventory and incredibly low sales. The area's sales are down 45% as compared to this time last year and it appears that the peak in inventory was in May as the are ticked down a peg. This is not promising news. Prices have held steady the last few months around $415,000, however this is off of highs from 2022 of around $450,000. Greeley has always been the more financially vulnerable market, and when rates popped, it affected hundreds of potential buyers. Year to date, Greeley/Evans is about 7% behind 2022 values and it doesn't look like there is enough momentum to inch towards even.
As mentioned above, although the markets in Larimer County have seen upticks in inventory, Weld County still lags. It is typical for inventory to peak in either June or July, but the hope is that we have enough inventory around for the coming months to keep up with demand. As it stands now, if inventory recedes, prices may slowly tick up again. And with rates seemingly topped out, it might be an eventuality.
PERCENT OF LIST PRICE TO SOLD PRICE
Markets across Northern Colorado are "right-pricing" their homes to attract the best buyers to the best homes. Additionally, while demand is strong, it is not strong enough to push the sales vs list price figures above 100% - each market across the region is sitting right at 100%, meaning if a home is listed for $600,000, it sells for $600,000 on average. This is quite an improvement from the recent Winter where some sales vs list price ratios dipped towards 96%.
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