The warm summer months are officially over as we head into fall. Typically, fall is a time where inventory begins to drop off and much of the buyer demand cools off since there are fewer homes to tour. The fall of 2023 is a bit of an anomaly, which is to be expected since the majority of the year has been an anomaly - with interest rates keeping buyer demand at bay. We are actually seeing an uptick in inventory when it typically declines - this is 100% a result of lingering listings that have been on the market for months. Something has got to give - either rates or prices and it doesn't appear that rates will be falling anytime soon.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Real Estate Prices Hold Firm, Inventory Ticks Up
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 had another very steady September, with median values topping $615,000, this was up 5% from September of 2022 when values were in jeopardy due to rates climbing above 6% for the first time in a decade. Now, rates are nearing 8% but prices are holding firm. September sales are down 20% as compared to September 2022, but that is pretty closely in line for what we have seen all year - a 15-20% fall off in sales. Fort Collins is unique because although prices are less affordable, there is still an intrinsic demand to be in Fort Collins - quality of life, recreation, jobs, culture - you name it, people want to be here. The most turn key, well kept homes are still garnering plenty of attention and homes are still selling quickly.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
Loveland, like Fort Collins, had a "good enough" September with home values topping $557,000 - up marginally over September 2022. Loveland is still seeing slumping sales, down about 17% from 2022. Like Fort Collins, well kept, well priced homes are selling quickly and at list price - smart sellers in Loveland are working closely with their agents to attract buyers from a small buyer pool - this means taking care of all deferred maintenance, putting effort into paint, flooring, staging and replacing major systems. Those sellers are rewarded with fewer headaches, fewer negotiable items and quicker sales.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans area is still struggling through 2023. It isn't quite "the sky is falling" territory, but there has been no momentum and little positive traction for the region this year. Greeley does tend to struggle in tougher economic conditions. Margins are already tight for the region's homeowners and homebuyers. Prices were down 5.22% from September 2022 to $420,000, but $420k is still a pretty nice benchmark. If the area begins to fall below $400k, there will be trouble, especially for those buyers who overleveraged within the last few years.
INVENTORY
Inventory is creeping up unusually across Northern Colorado. In years past, the only way to increase inventory was to put a new home on the market, but now, rising inventory levels are caused by the homes that are continually sitting. New listings hitting the market are down sharply, and have been moving down since about May. So while inventory appears higher than in years' passed, the majority of the market are homes that have been picked over, looked past, or not even considered. Those homes could, in theory, drag down the market as they being to take price reductions, lower offers, etc.
PERCENT OF LIST PRICE TO SOLD PRICE
It is common for sales vs list price ratios to drop around this time of year. The theory is that sellers who sell during the off season, with less buyer demand have a specific need to do so and are a bit more motivated to get their home sold - whether it is a job change, divorce, death, or other motivating factor. This fall appears no different as we are coming down, although, it does not appear we will fall off as much as 2022, where sales vs list price ratios bottomed out between 96 and 97% of list price.
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