As expected, the Northern Colorado real estate market had a pretty dreadful November, mainly the result of peak interest rates in the late September/October timeframe. It's a complicated time being a homebuyer, unless you take a leap of faith on the right home, and hope that the interest rates will begin to come back down. Some buyers are seeing this as an opportunity to pick up properties without ANY competition. Across the region, with waning demand, buyers are now seeing about a 3% reduction off of list price on average. If you're dipping your to into the market, understand this could be an amazing opportunity. Interest rates are already down 1% from their peak just 6 weeks ago, prices are off their highs and you have much, much less competition. The next 2-4 months might be the most opportune time to purchase a home in the next decade.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Sales Struggle in November, Prices Dip Slightly
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 been impacted the least during this high interest rate season. This is primarily due to the fact that Fort Collins has a very secure and stable economy, but also because there is a hefty amount of cash, equity and/or wealth in the area. Being less leveraged will always keep the market more stable, and provide more flexibility for buyers or sellers to weather the storms that we see in the real estate world. The median value is well below $600k again, however, it is nearly equal to last year's median. Sales were down as well, only 136 homes sold in Fort Collins in November, however, it is only down 7% as compared to 2022.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
Loveland/Berthoud had a rougher November than Fort Collins, however, faired well enough. The median value dipped down to $522,500, well off it's peak highs in the $560k range, but I expect the area to bounce back when conditions improve. Loveland is always somewhat in the middle, between Fort Collins and Greeley - enough stability to remain comfortable and secure.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans market had an atrocious November. The median value dipped to the $390,000 mark, which hasn't been seen since 2021. Because Greeley is the most affordable segment of the Northern Colorado market, it is much more prone to big swings due to economic conditions. Homeowners here are much more leveraged, which provides very little financial flexibility. There were only 67 single family homes sold in November, it is incredibly rare for such a large community to have only double digit sales.
While less inventory is a bad thing for buyers (everyone wants to see more homes, right?), it is good to see that the typical seasonal drop off in inventory is coming back. If the region added homes over the Winter months, prices would likely drop even more in the early spring as buyer demand would spread over more homes. Luckily, this drop off will keep prices "level" enough until interest rate conditions improve.
PERCENT OF LIST PRICE TO SOLD PRICE
As mentioned above, while we averaged about 100% of sales vs list price during much of 2023, as interest rates increased even more, buyers just wouldn't budge and sellers did come down about 3% on average. This is pretty common during the Winter months as more motivated sellers are wanting to offload. With interest rates improving, this number will likely bottom out in December and inch back towards 100% in the spring.
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