Where The Buyers Are… June 2013 Market Update Homes in Fort Collins

Where The Buyers Are… June 2013 Market Update Homes in Fort Collins, Colorado

If Connie Francis had been a REALTOR, then “Where The Buyers Are” would have been her chart topping hit instead of that other song/movie that made Fort Lauderdale famous (and no, I’m not old enough to remember that – I was born 3 years later).

Record Low InventoryIn preparation for the monthly update of statistics, it occurred to me that potential sellers might be interested in seeing a breakdown of how last month’s sales shook out in terms of price point (i.e. where the buyers are).  As I picked through the month-end data it showed that 63% of the 318 single family homes sold in Fort Collins Area 9 last month were between the prices of $160,000 and $299,999.  A little more digging showed that 66 homes, or 21% of homes sold in this area were priced between $300 and $400 thousand dollars.  When you add it all together, more than 84% of all single family home transactions in Northern Larimer county sold for less than $400,000.

If you’ve read my market reports in the past (insert link to page here), just like elsewhere in the country inventory levels have plummeted significantly the last 4 years.  When you look at May 2013 compared to the same time last year, the number Record Low Inventoryof homes available for sale is down another 16%.  This is the first time the Fort Collins market has had less than 1000 units available in May since the turn of the Century 13 years ago!  Yet, year-over-year sales volume is up 18.8% for the month and over 27% year-to-date. 

ElectrifiedAs of June 5th at 1:45 p.m., there are 521 single family homes active on the market under $300,000.  When you filter out the homes that are under contract, you’re left with 248 actually available to buy.  That’s little more than 1 month of inventory based on current sales figures.  With demand outstripping supply, the economic reality is that competitive offers have become the rule rather than the exception and this is leading to higher prices in the most popular price points.  The median price of homes for sale in Fort Collins has jumped nearly $28,000 from last year ending the month of May at $266,500.

Nearly two-thirds of last month’s buyers snapped up homes under $300,000.  If you’ve been on the fence about whether now is a good time to sell a home in this price point – it isn’t shocking that your fence is being electrified!

 

 

 

Greeley Colorado Homes For Sale May 2013 Market Update

Greeley Colorado Homes For Sale May 2013 Market Update

As we’ve seen in all other segments of the Northern Colorado Real Estate Market, the Greeley/Evans area has seen precipitous drops in overall housing inventory (aka ‘houses actively for sale’).  As the chart below illustrates, since 2010, the Greeley/Evans area has gone from more than 700 homes for sale in the month of April, 2010 to just over 400 in the same month of 2013.  This tightening of inventory combined with a substantial uptick in consumer demand (aka ‘buyers’) has led to quite a hot market this Spring! 

Greeley Colorado Homes For Sale May 2013 Market Update

Buyers Competing With Each Other Instead of Sellers

Another shift in market dynamics is where competition is coming from.   Qualified buyers are competing with one another for the comparatively few homes available as opposed to even just 12 months ago when buyers were competing with sellers’ asking prices by seeking closing cost concessions and inspection report items. 

Greeley Colorado Homes For Sale Total Homes Sold Graph

Median Home Prices Rising in the Greeley/Evans May 2013 Market Update

Substantial increases in sales volume as well as median home prices seems to demonstrate that the Greeley/Evans Market has cast off the previously record levels of distressed inventory stemming from the economic collapse of the sub-prime credit boom.  Median home prices in the Greeley/Evans Market has gone from $152,650 to $166,500.   This clearly demonstrates a recovery in the mid-tier housing stock.  NOTE:  The spike in home sales in April of 2010 appears due to an early round of the first-time homebuyer’s tax break incentive.

Greeley Colorado Homes For Sale Total Sales Volume Graph

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 Loveland, Berthoud, Greeley or Fort Collins, please contact us or visit our web-site www.buyfortcollinshomes.com

Loveland Homes For Sale May 2013 Market Update

Loveland Homes For Sale May 2013 Market Update

April 2013 sales volume in the Loveland/Berthoud real estate market nearly eclipsed last June’s high which at that point was the highest monthly sales volume in the area for the last 5 years.  With just over 54.6 million dollars in sales volume in April, the area is seeing yet another consecutive month of increased sales and activity.

Loveland Homes For Sale May 2013 Market Update

However, one of the challenges facing buyers in this market is the relative lack  of inventory.  As the chart below demonstrates, inventory levels for single family homes in the Loveland/Berthoud real estate market is moving in the opposite direction of sales volume and units.  This tightening of inventory has created much more competition among buyers who are scouring neighborhoods and the internet hoping to get a first glimpse of the next home for sale.

 

Loveland Homes For Sale May 2013 Market Update

Median Home Prices Rising in the Loveland/Berthoud May 2013 Market Update

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 Loveland has gone from $235,000 to $267,515, which is $3,515 higher than Loveland’s larger neighbor to the north, Fort Collins.

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 Loveland or Fort Collins, please contact us or visit our web-site www.buyfortcollinshomes.com

 

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Fort Collins Colorado May 2013 Market Update

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

Northern Colorado Real Estate April Market Update!

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.