As volatile as the market has seemed these past few months and even years, May continued to see home values increase for both single-family homes and townhomes & condos. Single-family homes rose a remarkable 16.7% year over year, but a fairly standard 5.3% for townhomes & condos. Though the number of pending sales and sold listings have decreased from this time last year, we're still seeing a 5% increase from list price to sold price.
According to NAR (National Association of Realtors), a nationwide slowdown in residential sales has resulted in a much-needed increase in housing inventory. However, that is not the case for Northern Colorado with a 2.5% increase in new listings for single-family homes since this time last year. Although inventory took a bump up last month, it's still well below where the market needs to be to get anywhere near market balance - which means Northern Colorado will be in a seller's market for the foreseeable future.
œWhile the country as a whole continues to figure out how to solve the ongoing housing shortage, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation's housing crisis over the next 5 years. Fort Collins Board of Realtors
Interest Rates - How they will affect the housing market:
During the week of June 13th , œthe Fed hiked up the largest interest rate increase of .75%, since 1994 and signaled it would continue lifting rates this year at the most rapid pace in decades as it races to slow the economy and combat inflation that is running at a 40-year high, according to the Wall Street Journal, Fed Raises Rates.
Northern Colorado Cities Will be on the Rise:
In a recent article by Colorado Biz, published in May of this year, Moving Proz, predicts Greeley and Fort Collins to grow in population and in home prices.
With Greeley, sitting just over 55 miles from Downtown Denver, it's conveniently located to the Metro area and Fort Collins. Besides proximity to so much Colorado has to offer, Greeley is also home to the University of Northern Colorado and has many amenities and job opportunities that keep students in this college town after graduation.
Fort Collins is another Northern Colorado city on the uptick. With countless miles of bike paths, local breweries, and public parks, this city has rightfully been coined the Choice City. With Colorado State University being one of the major reasons the average age sits at about 29, it's no wonder so many view Fort Collins as a young city with lots of room to grow in the coming years.
Despite rising interest rates, Northern Colorado continues to be a highly sought-after area for many folks. We're still seeing steady showing activity and inventory being added daily across the board for this market. If you're interested in buying in Northern Colorado, get into the market sooner rather than later. Long-term appreciation for homes has shown to be a constant in each financial crisis our nation faces. With the exception of 2008, home values have increased throughout each recession. Start investing in yourself and Northern Colorado!
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