Another month is in the books and interestingly enough, we might be starting to see a little bit of a shift in the market – now, whether that kind of shift will continue is yet to be seen – with the biggest and best real estate months coming up, we hope to be able to track any potential issues along the way. Keep in mind, individual Northern Colorado real estate markets can and will ebb and flow for different reasons. It’s important to understand that each market is different, our goal is to help you find opportunities to capitalize on.
Prices in April popped up in Fort Collins, nearly $390,000, which is a 12% increase over 2016 numbers. The culprit? Of course, still a lack of entry level, single family homes – both of the new construction and resale variety. Interestingly enough, home values in the Loveland/Berthoud dropped compared to the previous year’s prices – the first time this has happened since April of 2014. Loveland/Berthoud remains the region’s underperformer with only a 3% YTD increase over 2016 median values. The Greeley/Evans median value continues on a very steep upward trajectory – increasing over 5% over last year, and a double digit increase in YTD prices.
The leveling off in median values in Loveland/Berthoud is likely stemming from the surge in sales – up 16% over 2016 numbers. With a double digit increase in sales, home buyers are facing less competition, and prices are not escalating as much as in previous years. Of course, this could also be a minor blip on the overall outlook – prices are likely to surge ahead in the remainder of 2017 in Loveland/Berthoud. Sales are holding steady in the Fort Collins market, and with active listings actually increasing in slightly April, perhaps eager buyers will find more available homes and just a little less competition in the entry level. YTD figures are still just below sales numbers from 2016. Greeley is struggling to keep up in the sales department, down over 30% from 2016 numbers. It appears sellers are holding tight, and builders have built out the majority of their neighborhoods. With such a deficit in sales, one can only expect median values to skyrocket over the next few months. Keep an on on Greeley – it’s wild.
As mentioned previously, markets are always changing: expanding, contracting, or leveling off. Keeping on top of the market will ensure you are prepared when it’s time to make a move, a shift in the market might be subtle and I’m here to help you navigate. My opinion? The worst thing that could happen right now, might be the best thing to happen for our market – a small, manageable leveling off. I’m not talking about a contraction, I’m talking about a barely noticeable cool down. One where prices escalate in the 3-4% range per year, rather than double digits. That kind of market is more sustainable, manageable and gives more opportunities for everyone. I still don’t know if or when that might happen, but, it would be great for everyone to catch their breath.
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