October Real Estate Market Report
We continue to see moderate appreciation in most markets with some small price corrections thrown into the mix depending on what sub market you are looking at. Loveland had a price correction of -1.2% when compared with the median price in October 2018. But all other NoCo markets inched higher. If you look at all Northern Colorado areas combined, October’s median price increased by 4% compared to the same month last year. Inventory remains low, sales volume is robust and stable. The average home receives a contract in 22 days and closes in 52 days. 30 year interest rates are still well under 4%. We hear a lot of talk and headlines warning of a housing collapse but if you read the evidence presented in those articles, the rationale seems thin. I read a CNN piece last week entitled, “The Housing Collapse is Here.” The thesis was that housing inventory is historically low, but prices are not increasing the way they should be consistent with the low inventory. If low supply is a predictor of a coming market collapse, then I may need to re-take some courses on economics because that’s not what I learned! That article has since been removed from the CNN website. There’s no doubt the market has slowed from where it was two years ago but a slowdown is not a collapse. We see the NoCo market showing signs of health and stability while undergoing a much needed cooling period.