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Friday Fun Facts! 10,000 Short
Northern Colorado isn’t the only place with limited inventory.
Metro Denver is short by 10,000 listings.
The average number of homes for sale for this time of year in the Denver area, going all the way back to 1985, is 14,309.
Right now there are 4,084 residential properties on the market. This is a difference of 10,225 listings compared to the long-term average.
The peak was 2008 when there were 25,037 listings. The lowest year was last year with 3,878 (a drop of 21,159 in 9 years?!).
The good news for buyers is that inventory is up 5% compared to last year. Another piece of good news is that the Spring tends to produce the highest amount of inventory for buyers to pick from.
Friday Fun Facts!
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Where Is The Market Right Now?
As we hit the middle of the year, it is good to look not only back at where the market has been, but forward to where the market is going. There are several interesting factors at the moment that make this a slightly different market than it was 5 months ago, but the big things to keep an eye on for both Buyers and Sellers are:
- Interest Rates
- Housing Starts (new construction)
- Days on Market
- Inventory
Interest Rates remain low for the time being, and this is an opportunity for both Buyers and Sellers. Low interest rates make payments more affordable for Buyers, but also make it so that Buyers qualify for more home for their buck making it easier for Sellers to realize higher sales prices. As we start to see interest rates increase towards the end of this year and heading in to next year, this opportunity will slow down for EVERYONE in the market.
Housing Starts are actually down in Colorado right now (even thought it seems new construction is everywhere!), which means we most likely will continue to see a shortage of new homes, driving more Buyers to the resale market keeping that inventory tight. As construction defects legislation allows builders to build condos and townhomes though, hopefully we will see more of those start to come down the pipeline. We’ll keep an eye on that for you.
As you can see below (information from the Fort Collins Board of REALTORS), for the Fort Collins area Days on Market has decreased by 8.7% for single family homes, indicating Buyers are still out there wanting homes!
You can also see that we are seeing increasing inventory though, but 13.3% which means there is a little bit more for Buyers to look at, good news to those who have been making offers and losing out.
So opportunities exist for both Buyers and Sellers in this market, and there are pockets that have more strength for one party or another. If you are interested in learning more about the market you may be interested in buying in or have a home to sell and want to see what that looks like for your particular area, please give me a call or shoot me an email. Thank You!
Even In November-The Market Is Still Moving!
Now that we have finished with the election turmoil, we’ll start to see what the results will mean for the housing market. If you’d like to see Windermere’s Economists point of view on the matter, check out this link.
We are still seeing signs of low inventory and a quick moving market, and even some antidotal evidence that the $500,000 to $750,000 segment of the market is starting to see more showings and activity than we saw in August through October. The average price in Fort Collins year to date is up 10.4% to $395,913, almost $400,000 average price. We are also at 1.8 months of supply (remember the National Association of REALTORS says a balanced market is 6 months), and that is a 28% drop since last year at this same time. This means we have even LESS homes to satisfy the market.
While interest rates have started to climb a little since the election, we are still historically low for interest rates so if you need or want to buy then now is a great time! And as a seller, as we’ve seen with the data I’ve presented above, if you want to sell your home give me a call and we can talk about how the Windermere Certified Listing program can help get your home sold quickly!
If you have any questions about this data, please feel free to give me a call or shoot me an email. I hope you all have a great Thanksgiving week!
Listings Listings Listings!
Kitchen/Living Room of 7304 McClellan!
So at the moment we keep hearing about a lack of inventory in Northern Colorado. While this is true, we are certainly at super low levels that make it tough for buyers, I have been lucky enough to have a good number of listings this summer. As we head in to the end of summer I want to make sure that everyone out there knows about the listings that I do have, in case they are the right opportunity for you.
7304 McClellan Road in Wellington: This home built by GJ Gardner Homes of Loveland is a 3 bed 3 bath home with a 3 car garage (lucky number 3!) It is a BRAND NEW construction home ready to move it, and priced at $319,360.
7326 McClellan Road in Wellington: This is another BRAND SPANKING NEW home by GJ Gardner Homes of Loveland, with 3 bedrooms, 2 baths, and a 3 car garage. It is a ton of square footage, and a lot of upgraded finishes. It is listed at $391,515. (For some reason the Windermere site isn't pulling the photos, so call me and I'll show it to you!)
300 Shore Court in Terry Shores in North Fort Collins: This one of a kind home has been remodeled, and has Terry Lake rights! 5 bedrooms, 4 bathrooms, and over 4,000 square feet with views that are almost impossible to beat! Come check this beauty out, listed at $635,000!
August KEVCO Newsletter
Interested in the Fort Collins real estate market? Check out our newsletter to learn more!
Absorption Rate and Inventory
Well here we go again, homes are being absorbed into the market even faster than they were back in April! Absorption rate is the time it would take to sell all of the homes on the market today, kind of a balance sheet snapshot of inventory vs speed of sale. The interesting thing is that new listings are about the same, so the homes that are hitting the market are selling even more quickly. Instead of an absorption rate of 3.12 months in April, we are down to 1.46 months, a HUGE change. A lot of this can be attributed to the under $300,000 market moving so quickly as buyers clamor to get the remaining affordable homes in Fort Collins, but homes are still moving much more quickly even in the upper price ranges than a balanced market would usually allow for.
What to do with this information? Basically, as a buyer you need me to be proactive in searching for homes for you, and need to be ready to make very fast decisions on making an offer. This means being pre qualified and ready to go at a moment’s notice. As a seller, if you own a home in the under $300,000 price range and have considered selling, now is the time.
I hope you all have a great week, and as always please give me a call if you or anyone you know is in need of real estate help!
Fort Collins Real Estate Market Update
Well we are officially into the 2014 business year! Looking forward to the next few months, it is important to look back at the trends of 2013. One of the strong indicators of the low inventory is the market absorption rate. This is the calculation of available homes divided by the sold homes in one month, or how long it would take to sell the existing inventory. It is basically a snapshot, or balance sheet of our real estate market.
A balanced market should be an absorption rate of 6 months. We haven’t seen those kinds of numbers since the beginning of 2011. Through 2012 we saw absorption rates between 3.5 and 4.5 months showing the beginning of the tighter market, and where we saw it start to shift to favor sellers. When we got to 2013, those numbers fell even more to hover around 2.5 months, which ignited the multiple offer situations on most properties and competition on what little inventory there was.
For the beginning of 2014 we are still looking at an absorption rate of about 2.6 months, which is a product of the end of year weighted towards sellers, as well as the holidays and cold months. I will updated you again in the second quarter of this year, but I think that with the slow but inevitable increase in interest rates, and mores sellers wanting to try and take advantage of the sellers market, we will see more inventory come online for buyers to choose from.
Either way, there are strengths to being a buyer or a seller right now, so let me know if you have any questions or would like to discuss buying or selling a home!
