It doesn't seem to matter where in the state you live, the housing market in Colorado is insane, to put it mildly. The Northern Colorado area is no different than that of Metro Denver. Home prices have consistently been on the rise the past few years, and April saw its share of increases as well.
In the month of April, single family homes witnessed an average sales price of $725,705, which is a staggering 30.2% increase from one year ago. Townhomes & Condos saw a similar increase of 25.7% to a whopping $435,605. When talk of a housing bubble starts to trickle in, we have to look at how much inventory we actually have in the marketplace, which is a huge indicator on how things are going. In all areas of the Northern corridor, we are looking at. 7 months of inventory for single family and .4 months for townhomes & condos. Still well below what is needed for a balanced housing market.
To put this all in perspective, we also need to look at sale vs list price as a market condition as well. For both single family and townhomes/condos, the percentage of homes that sold over list price were 105.9% and 105.5% respectively. These numbers are truly incredible as they show us just how willing buyers are to do what it takes to get their offers accepted. Although we don't have indicators that tell us exactly how many offers each property received, we do know how many of these homes actually sold - 214 for single family and 81 for townhomes/condos - both double digit drops, year over year. These numbers indicate we are in a low-inventory market and prices just seem to keep increasing month over month.
Fort Collins Ranks #7 across the US
Although interest rates have been on the rise the past month or so, it doesn't seem to make a difference in the amount of homes that are flying off the market or what buyers are willing to offer to get that perfect home. According to NAR (National Association of Realtors) the Fort Collins area made the top 10 across the US, at #7, for the largest percentage gain in existing single-family home prices in the 1st quarter of 2022 - which was a 28.4% increase year over year (National Association of Realtors).
Best Places to Live
Historically, the Northern Colorado area has been a fairly affordable place to live outside Denver or Boulder, but with recent rankings of best places to live, US News & World Report analyzed over 150 Metro areas across the country based on quality of life and the job market and Fort Collins ranked #17 for best places to live, #11 for fastest growing places, and #4 for best places to live in Colorado (US News & World Report). This could be another factor as to why home prices just keep climbing, we live in a state that so many wish to move to.
Throughout the U.S., we are hearing stories of increased home prices with no real reprieve in sight. We all have to wonder, when will prices start to level out? Let's stay tuned for how the increases in interest rates these past two months will affect home sales when we go over the market stats next month.
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