Welcome to the Northern Colorado Real Estate April Market Update!
Spring is finally here and the market has really taken off! In each of the 3 major communities covered in this report, all are reporting substantial gains in both number of homes sold and and median prices.
First, let’s talk about inventory. Of all the indicators tracked in this post, this is the only one that seems to be lagging. Inventory just hasn’t kept pace with demand which is leading to bidding wars over desirable homes certain markets. The chart below shows a comparison of the last 6 years of inventory levels for single family dwellings in the Northern Colorado Real Estate market made up of the Fort Collins, Loveland/Berthoud, and Greeley/Weld County areas.
Next let’s take a look at the number of transactions that have actually sold in the last 6 years. As you can see, the number of closed transactions has increased steadily across all four communities. When you see an increase in transactions but a lagging inventory, demand is outstripping supply and prices are likely to go up. The second chart shows the tightening gap between inventory coming on the market compared to inventory sold (and leaving the market).
Finally, this last graph shows the sales volume in April over the last 6 years. It is evident (including the bump from the first-time homebuyer tax credit in 2010) that across all the Northern Colorado Real Estate statistical areas that units and volume are up and prices are liking edging higher with the median price of homes sold in each of these areas has seen a substantial increase year over year. Fort Collins metro area median price for April has gone from $245,000 to $264,000. Greeley/Evans went from $152,650 to $166,500 for the same time frame while the Loveland/Berthoud area went from $235,000 to $267,515.
It is clear that change is afoot and for those either thinking about selling their home or buying one, now may be a good time to act. Mortgage rates are still incredibly low and loan programs like VA and USDA provide low or no money down payment features that have never been more attractive for buyers.
