July is often a huge question mark in Northern Colorado real estate. Typically, we do see some kind of a slump, but it often comes in varying degrees. Most times it is perceptible for a few weeks. Other times, it can feel like the sky is falling. This year, it has felt a bit more like the sky is falling. We have our typical slump due to families taking their family vacations and the bulk of the selling season energy was swallowed up in April, May and June. An additional wrinkle that we are facing in the market is that there is finally some definitive hope for interest rate reductions in coming months. We did see a pretty major drop in the first week of August, in anticipation of the fed meetings in September. Whether it is our traditional July slump, or buyers pulling out and waiting for further rate decreases, for some listings, it's hard to bring in showings.
THE CRAFT BROKER
NORTHERN COLORADO HOMES
Mixed Signals in 3 Major Markets In July
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 area market did slump a bit in July, with prices dropping just below $600k. This was a 5.55% decrease from July 2023 medians. Sales remained level as compared to last year. The biggest issue holding back the market from making more gains is that (finally) inventory levels have grown to a point that demand just isn't there. Fort Collins is now at a 5 year high in inventory levels which is a great opportunity for buyers: with standing inventory, more opportunity to negotiate a discount is available. Additionally, with more inventory, buyers can be more selective to find the right fit and they don't have to bend over backwards to see homes immediately. This may be the peak of the inventory though as new listings hold steady and are poised to fall in the back half of the year.
LOVELAND/BERTHOUD (IRES AREA 8, INCLUDING LOVELAND, BERTHOUD, & SW LARIMER COUNTY)
The Loveland/Berthoud market performed the worst in the region in July. Prices were down to $549,995, which was 2.66% lower than July 2023, however it was down significantly from June 2024 figures which topped out at $600,000. Additionally, sales were down 11% as compared to July 2023, which no clear reason why. There is always a push and pull of demand in Loveland as compared to its regional counterparts. While more affordable than the Fort Collins area, it is less affordable than Greeley. Also, Loveland competes with buyers in Windsor, too. Inventory levels are not at 5 year highs, but are still increasing. Buyers can be selective and have no major motivation to quickly move.
GREELEY/EVANS (IRES MAIL CITIES GREELEY AND EVANS)
The Greeley/Evans market continues to outperform both Fort Collins and Loveland, primarily due to its affordability. Sales are up 12% from July 2023, although this only represents a 13 home swing since inventory has been so low in Greeley the last few years. Median value crept up to a new high of $436,530, which is nearly 5% higher than last year's figure. Rising home values in Greeley is providing many homeowners with additional equity to deploy, should they decide to sell and move up or move on.
INVENTORY
Fort Collins was the only market in which new listings popped up in July, both Greeley and Loveland saw a typical seasonal decline in new listings. Total inventory, however is increasing in both Fort Collins and Loveland, near peak levels in total, meaning there are many more homes remaining on the market - ripe for price reductions or negotiations less than list price. Too much inventory leading into the back half of the season could force prices lower, however, if interest rates do decline, demand will tick up, making it more competitive. Just when buyers thought they were catching a break.
PERCENT OF LIST PRICE TO SOLD PRICE
Across the board, percentage of list price to sales price is still sitting at 100%, which means there isn't much wiggle room for buyers to negotiate at this point. But with rising inventory, and with homes that have been sitting longer, there is opportunity. Now is the time to strike before more buyers enter the market when rates are lower.
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