August was neither fantastic nor poor, there was "adequate" energy in the market, but nothing overwhelming. July was, after all was said and done, a pretty poor month for the market in terms of sales, so it was good to see a bit of a positive bump as we head further into the back half of the year. A huge positive has been a move in the interest rates, down to the low 6%'s (as of this post) that wasn't felt in August, but will certainly help to get some mortgage applications going. It will be an interesting 8 weeks in the real estate world as low(er) mortgage rates will potentially help some fence-sitting buyers enter the market, where inventory is still increasing. Buyers will have more choices, and with better buying power, can potentially make more advantageous moves. Let's not forget the election either, which really does nothing for the market in reality, but only changes perception.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Markets Hover as Rates Head Downwards
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)
The Fort Collins market saw a nominal increase of nearly 1% as compared to August 2023 median values, up to $595,000. All in all, prices in the Choice City have essentially been hovering since mid 2022, in the $575k-$625k range depending on the month. Sideways is ok. We have had over a decade of double digit returns, a little cooling is helping the market not become completely unaffordable to the median buyer. August sales are down about 15% as compared to last year, simply as buyers wait for better interest rate news. If sales continue to drop, inventory will continue up - this will cause prices to fall. Stay tuned.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market had a good August, with median values rising up to $587,500, nearly 5% above August 2023 values. Sales were down 11% from 2023, just 161 homes sold in Loveland/Berthoud. Again, Loveland is in the middle, not quite as attractive to affluent homebuyers as Fort Collins, and not as affordable as Greeley - but being in the middle offers some stability that the higher and lower markets don't have.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
Again, The Greeley/Evans market is shining brightly, mainly due to its affordability. Buyers who want to make their dollar stretch, see Greeley/Evans as a great opportunity to plant roots. Greeley/Evans' median value is up to $429,900, not as quite as the region's high marks in the mid $430's, but values are steady. Sales are up 24% in August, as compared to last year, which is in opposition to the decreases in sales in the rest of the region. Simply put, buyers are favoring the more affordable option and pulling would-be-homeowners away from the more expensive options.
INVENTORY
In each market in the region, inventory is still increasing. August is usually the month where inventory starts peak or even decrease as we head into the cooler months. This year may be different. With interest rates falling to more affordable levels, move up buyers may put their homes on the market with hopes of buying their next home to take advantage of the rates. This won't necessarily increase inventory if they stay local, since they'll put a house on and take one off. One interesting note, Fort Collins did see a decrease in new listings, but their inventory is still increasing, meaning more and more homes are lingering on the market. Greeley and Loveland had an upward bump in new listings coming on and may be met by hungry buyers, but it may take incentives or price reductions to get sold.
PERCENT OF LIST PRICE TO SOLD PRICE
We have finally seen some downward pressure on prices in August as Fort Collins and Loveland/Berthoud fell from 100% to 98.0-98.5% - a total of 1-1.5% off list prices on average. Greeley/Evans is still holding strong at 100% - showing that there is strong demand and even bidding wars, above list price offers and good competition. These percentages usually wane in the cooler months as sellers cling to any buyer that writes a respectable offer.
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