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Fort Collins Colorado May 2013 Market Update

May 16, 2013 By

Fort Collins Colorado May 2013 Market Update

The Fort Collins market is experiencing a housing drought.  The first graph shows a comparison of the active inventory in each month over the last 7 years.  With levels far below historic averages, even a modest uptick in buyer demand creates a highly competitive purchase environment.  This may be good news for those home owners thinking about selling.  With the market responding within hours of an updated home search, Sellers are foregoing weeks of keeping a house in pristine showing quality or having to spend weekends away from the home while an agent holds an open house.

Fort Collins Colorado May 2013 Market Update

With the substantial increase in sales volume and units, especially when compared over the past 7 years, it is clear the “pent-up” demand has broken loose and more people are interested in real estate they can call their own!

Fort Collins Colorado May 2013 Market Update

What does this Fort Collins Colorado May 2013 Market Update Mean to You?

Median home prices are moving up as well.  Since the median home price reflects the true middle of the bell curve of home prices, jumps in this indicator demonstrate a recovery in the number of homes being sold in higher price points.  This is in sharp contrast to the more widely reported “average sales price” which is easily moved up or down with fluctuating luxury property sales.  In just the last year the median price of homes sold in Fort Collins has gone from $245,000 to $264,000.

Interest rates remain at historic lows which is also creating an interesting opportunity for Sellers.  With high demand in the median price points, a well-positioned seller in this market could take advantage of existing equity and use the increased buying power offered by sub-four percent 30 year fixed mortgage rates!  Currently, bankrate.com is showing 30 year fixed conventional mortgages from a national survey of lenders at 3.71% and 2.92% for a 15 year fixed mortgage.  Trends indicate that mortgage rates are ticking up slightly as the economy continues to improve. 

If you would like more information on the market in Fort Collins, please contact us or visit our web-site www.buyfortcollinshomes.com

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Northern Colorado Real Estate April Market Update!

May 8, 2013 By

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.

April Active Inventory History

 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).

April Homes Sold HistoryApril New Listings versus Sold Listings

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.

April Sales Volume History

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.

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