Northern Colorado real estate sales, especially in Weld County, are booming with a 22.3% increase for the first two months of this year on top of a 20% increase last year. This compares to sales in the Loveland and Fort Collins area which are down 8.5% and 7.5% respectively after recording 17.1% and 14.7% increases last year. Weld County sales have typically accounted for 40% of the total area but are currently nearing 50%. New home sales are keeping pace with an increase of 61% and new construction in Weld County now accounts for over 50% of the total new construction in the region.
All of this Weld County activity has resulted in an increase in the average selling price of 10.1% for the year to date on top of a 9.5% increase last year. So the big question is, can it continue and looking at the under contract activity, the answer is yes, at least for the next two or three months. There were 343 homes under contract at the end of December. This increased sharply to 506 at the end of January and now stands at 579, moving from about one month sales under contract to the current 1.5 months. The biggest drag is the lack of inventory with a net of just 437 active listings in Weld County representing a meager 35 day supply when a six month supply is considered a balanced market.
The results in the Loveland and south Larimer County area show the average selling price has moderated somewhat from a record high in January of $296,401 to just $269,051 in February putting the year to date figure at $280,388, still a 15.1% increase from the same period last year. The 259 homes under contract is equal to 1.3 months of sales and the 222 net inventory of homes for sale is about the same as Weld County. New construction in the Loveland area is down 50% for the year to date compared to the same period in 2013.
Sales in Fort Collins and north Larimer County are down 7.5% and the average selling price is about exactly the same as last year. There are 480 homes under contract, so the same 1.4 range as the other two areas and the active inventory of 455 homes is also a 1.3 month supply. New construction sales are up slightly.
For Northern Colorado real estate in total, other than the big improvement in sales in Weld County and sharp price gains in Weld and Loveland, all of the other figures are pretty well in line with 1.4 month of sales under contract and a 1.3 months supply of active listings. The homes that sold during the first two months were on the market just 61 days prior to being placed under contract. This compares to 70 days last year and is certainly a reflection of the short supply.
At some point the limited supply, higher prices and the expected increase in mortgage rates is going to put a damper on the market but with 1,318 homes under contract there is a lot of buying momentum to keep things rolling.
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