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