This time of year is really the point in the real estate cycle where we begin to understand how things will play out for the remainder of the year. As it stands now, our inventory has jumped up quite a bit from March into April (a welcome sign for homebuyers) but there are no appreciable signs of any major improvements to the Northern Colorado real estate market at this stage in the game. Inventory is still struggling - sellers are still holding back, probably due to concerns on finding a replacement property while rates are in the mid 6% range, with no signs of improving, unfortunately. The economic pressure of higher rates has still not brought values down much in Northern Colorado, simply because inventory shortages are keeping buyers somewhat competitive, where houses are selling again for 100% of list price throughout the region. One item to keep in mind, April 2023 is being compared to April 2022, probably the most heated and competitive time frame in recent history, for context.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
NoCo Sales Drop, Prices Hold Firm
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)
Fort Collins is remaining the most stable and consistent market in the region, notching just a 1.7% decrease in median value as compared to April 2022. Year to date, prices are just down 1.26% from YTD 2022 - so things are looking pretty stable still. Inventory is improving slowly but surely in Fort Collins as well, yet sales are still down 21% from last year when nearly every home on the market sold immediately.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market had a bit of an off month - a median value of $530,000 was down 10% from the $593,000 value posted in April 2022. But, year to date, Loveland is actually the best performer in the region, down just .9% from YTD 2022. Inventory is returning, thankfully, to the sweetheart city as well, although like Fort Collins, sales have slipped about 20% as compared to last year.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
Greeley/Evans is in a bit of a funk. Where Loveland and Fort Collins have had increases in inventory, Greeley/Evans actually had fewer available homes for sale at a time in the market when they should be accelerating. We have not seen this few homes for sale in Greeley since January 2022 - certainly frustrating for buyers. Additionally, median values are holding at about the $410,000 mark. Typically when inventory is this low, it induces competition from buyers, however, currently buyers are strapped for cash with current interest rates. There were just 110 sales in April, as compared to 226 in April 2022, down nearly 51%. Yikes. While this appears bad, it is more of an indication of a stalled market - one that requires either a shot in the arm of more inventory, lower rates or a combination of both.
As mentioned above, we have seen a good uptick in inventory in Loveland and Fort Collins, while Greeley is still lagging. The last two years aren't great comparables for inventory, simply because the market was so tight, but we should have anywhere between 500-600 homes for sale in the region, while we currently have less than 400. This is a problem.
PERCENT OF LIST PRICE TO SOLD PRICE
We're back to the 100% threshold across all three markets. This indicates that either the level of inventory is at a point where offers are competitive and sellers get their desired list price, or, sellers have adjusted appropriately to the current market and priced their homes in line with market value as opposed to throwing their pie in the sky hopes on the MLS and getting it. Either way, 100% of sales to list prices is an indication that there is great demand for any supply.
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. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com