Mortgage rates are now at 6.2%. We have felt a lot more buyers come back into the market since rates have fallen into that range. The number of new listings coming on the market right now is lower than it has ever been. However, the number of homes sitting on the market is 127% higher than last year. Buyers must be patient. Be prepared to search over a time span of multiple months. Longer searches have advantages. It helps buyers learn the market and builds their confidence so they know when the right one comes. We also find that it helps them understand how active the market is and gives them confidence in the stability and resiliency of prices. They get to see homes that they have walked through go under contract and sell at certain prices. Essentially they become market experts in the property type that they’re considering. When buyers sit on the sidelines and read headlines, they get analysis paralysis. But when they actively search and learn, they gain confidence to be decisive and know when they’ve found the right one.
The listing price you choose in combination with the marketing your home receives will have a dramatic impact on the time you spend on the market and the price you ultimately receive. Your realtor should be able to tell you how different prices will affect the amount of time you spend on the market. Also, your home should not only be listed on MLS and Zillow, but also on social media which can easily bring tens of thousands of additional views to your listing in your target market.
Despite 7% mortgage rates and more doomsday headlines than you can count, the market remains active enough to keep prices stable. In August our median price fell about 4%, then ticked back up slightly in September and basically remained unchanged in October.
Larimer County median home price falls 4%, Weld County falls 1%
Thursday, September 22nd, 2022
Ryan Jenkins
After 6 months of intense increases in mortgage interest rates we’ve finally see a price correction in the month over month data for Larimer and Weld County. Typically we don’t pay a lot of attention to this data because it’s not seasonally adjusted. But because of how fast interest rates have gone up we’re watching it closely right now. Inventory has increased significantly over where it was last year. However, by historical standards the number of homes for sale is still very low. While the interest rate increases have been terrible for housing affordability. They have reduced the amount of bidding wars so our buyers have much more time to make decisions and they are typically able to keep their inspection and appraisal contingencies which means we can get more money for repairs and ask for price drops if we get a low appraisal.
The fact that prices are hanging on and even appreciating despite demand for homes being completely obliterated by the rising interest rates is almost unbelievable. It goes to show you how nefarious the housing shortage is.
During the final quarter of 2015 we again saw increases in the number of properties listed for sale in almost every Northern Colorado market. The number of new properties that hit the market in Fort Collins rose 13% when compared with the same period in 2014. Other markets followed suit with increases ranging from 7% in Longmont to a 23% increase in Windsor. This increase in listings is the continuation of a trend we identified in the 3rd quarter of 2015. During those months our agents felt the market softening a bit; but we weren’t sure if it was the fall slowdown, or the market losing steam. Now that we’ve seen the increase continue for 2 quarters, we think the trend could continue and begin to slightly cool this blazing hot seller’s market.
Fall is typically a time of year when real estate activity slows a bit. The summer selling season is winding down, most folks with school aged kids worked hard to complete their move during the summer so the sales volume slows once September rolls around. So when our team began to see signs of a cooling market this fall, it was tough to know whether it was the time of year, or an indication that market conditions are changing. Showing activity on listings slowed, price drops became more common and we noticed some listings that we expected to sell in a matter days sit on the market for a few weeks or in some cases months. Is this just a fall flop or has our market peaked? Let’s check the numbers to find out.
Low inventory and rapid appreciation continue to characterize the Northern Colorado Real Estate market. The median sale price in the city of Fort Collins was $256,000 in the 4th quarter of 2013, while the 4th quarter of 2014 saw a median sale price of $286,000–that’s a 15.6% increase. It’s no wonder prices are up again when you see that the number of homes for sale at the end of 2014 is 20% less than it was a year ago.
With all the news and hype about the red hot real estate market in Fort Collins we are hearing a lot of our buying clients drop the B word and ask if they are buying in the midst of a bubble in home prices. It’s a valid question that deserves a look at historical data.
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