The homes that closed in October were the result of contracts written in mid August through September when interest rates were accelerating towards the peak of about 7.8%. Even with the highest rates since the year 2000, there was still a "reasonable" amount of activity in Northern Colorado given the climate and rates appear to be stalling and potentially dropping in the new year. Sales are still down between 20-30% even with a bit more inventory than typical, however, much of that inventory is has been picked over and is sitting. In a unique market like this, it can be both difficult to sell a home, while also difficult to buy a home. It takes deep market awareness, patience and strategy to put the pieces together on either side. Working with an experienced real estate professional is your best resource to navigate the market this winter.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Prices Hover As Good News May Be On the Horizon
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 has seemed to go from good month to not-so-good month in 2023. Sales in October were down 17% as compared to last year, and median value was marginally better, up 1.75% to $583,000. Inventory levels in Fort Collins are the highest they've been in since 2018 and 2019 when things felt more "normal". The only difference was that rates back then were between 3.75% and 4.75% and prices were about 30% lower so it was easier to find a buyer for almost any home. Fort Collins does weather the storm well - it is a desirable destination with a stable economy and strong workforce.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
Loveland had a reasonable October, given the difficult climate to buy or sell, however, sales were down over 30% as compared to last year. Loveland's inventory is really low in comparison to the surrounding communities, which is providing few options for weary buyers. All that being said, values are still holding steady, up 1.68% as compared to last year, to $549,063.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans market had a bit of a bounce back month. Although sales are still down 22% from last year, it is a bit of a boost from the near 35% drop in sales figures that we have seen most of the year. Median value in Greeley/Evans had a small bump as well, up 3.70% from October 2022 to $420,000. Greeley's inventory remains growing as brand new listings are actually steady, rather than waning in the fall months. While buyers might have a bit more to choose from, affordability is a major concern in this market.
INVENTORY
As mentioned above, inventory levels are at about their peak for the year. This is a strange circumstance because typically we see peaks around mid year. This shows us that there are more homes lingering on the market as the year goes on and buyer demand is not yet strong enough to clear these units. With an increase in inventory, we will see further declines in prices, but for now, I expect prices to stay level while rates hopefully recede.
PERCENT OF LIST PRICE TO SOLD PRICE
This is the time of year where sellers tend to be a bit more desperate to sell their homes and will be more apt to negotiate. During October through January, it is typical to se sales to list price ratios drop about 1.5-2% - meaning you can get anywhere between $8-12k off the median home in Northern Colorado. Sellers who have to sell during this timeframe are "have to" sellers, which means there is likely more room for negotiation before they get desperate.
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