We are a couple months into 2023 and things are getting more difficult to navigate in Northern Colorado. High interest rates in the 6.25-6.5% for most well qualified buyers is putting a huge damper on sales. Conversely, while the early spring is when we should expect to see MORE inventory, we are continuing to see less. This does not necessarily mean that competition over few available homes is increasing home values, but it is keeping them generally in line with 2021 figures. Buyers are having a tough time navigating this environment: they are either forced to reduce their budget due to high rates, increase their monthly payment to get what they want and/or need, and there is not a large number of homes to choose from. Sellers, on the other hand, grapple with the thought of selling their home with a sub-4% interest rate, getting good equity out of it, but then having to double their interest rate just to move up. Many are avoiding buying AND many are avoiding selling. It appears that unless rates reduce, we may end up limping this market through the entire year, waiting for more favorable conditions to pan out.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Sales Drop, Prices Waver in Noco
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)
Median values bumped up a bit in the Fort Collins area this February, up from December/January lows, but still off from mid 2022 highs. It seems that over the next few months, median values will likely hover in that $550,000-$600,000 range unless rates change, or economic conditions shift. Fort Collins is still very desirable, has great employment, schools and opportunities for those who an afford it.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market dropped back down to the norm after popping in January. Since the market is reported with Loveland and Berthoud combined, it does help to see which communities have a bit more influence over the whole. While the Loveland market has lingered in the $500-$520k range for the last few months, the Berthoud market as been propping the whole market up, with their values in the $600k+ range. Berthoud also has more high end, luxury options that help to prop it up. Nevertheless, prices in the market are "stable and hovering" just like Northern Colorado as a whole.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
Greeley/Evans has had a larger drop in homes sales as compared to the rest of the region, with sales down about 30% from the same timeframe in 2022. Because Greeley/Evans is a more "affordable" market, interest rates definitely have more of an impact here when salaries/income don't stretch as far as they would in more affluent areas. While prices have dropped off their mid 2022 highs, prices are stable in the $400-$420 range as we limp through the year.
I mentioned last month that inventory is likely to increase in February if it follows historical trends, but because this year is so different than years passed, that prediction was incorrect. Inventory actually decreased even further in February across all 3 major Northern Colorado markets. At this point, I'm hopeful that March will be the month that some new inventory returns.
PERCENT OF LIST PRICE TO SOLD PRICE
In Fort Collins and Loveland/Berthoud, offers have come back further in line with asking prices, while in Greeley, sellers are getting edged off their list prices further. Remember, although this metric can be used to measure how competitive the market is, the unknown variable here is how "in line" with current market conditions sellers are pricing their homes. For example, if a seller decides to list for $560,000 and after lingering on the market for 2 months, accepts and offer and closes for $530,000, that would be a 94.6% list vs sold price ratio. If they would have put their home on the market on for $535,000, they would likely find a buyer quicker and the ratio would be 99.06%. It's all relative!
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 young son, Hudson, or sharing a beer or two with a friend throughout Fort Collins. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com