Northern Colorado Real Estate Market Report Winter 2016

Strong Seller’s Market Persists Despite Continued Increases in Number of Homes Listed 

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.

But try telling that to a buyer currently shopping in the region. They’ll laugh at any notion of the market loosening. Because while more listings are hitting the market, they are being snatched up as fast as ever. Despite the increases mentioned above, low inventory and impressive appreciation continued in the 4th quarter with median prices jumping 10% or more in Fort Collins, Wellington, Loveland and Greeley. Timnath and Windsor, however, saw lower appreciation rates of 4.3% to $436k, and 4.6% to $392k, respectively. The dramatic collapse in oil prices and higher price points in these Weld County markets were likely the contributing factors.

Over the next year we expect more moderate appreciation. Mortgage rates are predicted to remain in the low 4% range throughout 2016. The current average 30 year rate is 3.8%. We’re guessing at 5-8% home price appreciation in Larimer County. Weld County prices should gain a bit less, probably in the 2-5% range. Over the long term we are still very bullish on Northern Colorado and feel there is plenty of room for appreciation. By 2025 Larimer County’s population is expected to increase by 37%. And because of high building costs, most notably due to water prices, builders are struggling to produce affordable new construction. The current median new build price in Fort Collins is $505k. The cheapest new build is $324,000 for 1,238 finished square feet.

Although the market for buyers continues to be competitive, our team is thriving. Our offer strategies helped nearly 100 of our buyers succeed in 2015. Overall we averaged a home sale every 2.4 days. We are so thankful for our client’s trust and look forward to continued success in 2016. If you’d like to talk shop, or just catch up, I’d love to hear from you.

Grey Rock is not just another real estate company. We are a local, family-owned brokerage. We have hand selected a team of the very best talent in Northern Colorado. If you’re thinking of buying or selling, let us show you the Grey Rock difference!

All Data came from mail city in each market with the exception of Old Town FC

Fort Collins

13.7% increase in new listings

Prices up 11% to $340k

Median new build price $505k

Old Town Fort Collins

38% decrease in new listings

Prices up 4% to $360k

Loveland

16% increase in new listings

Prices up 13% to $292k

Median new build price $389k

Longmont

10% increase in new listings

Prices up 7% to $315k

Median new build price $558k

Greeley

number of new listings unchanged

Prices up 13% to $239k

Median new build price $314k

Wellington

8% decrease in new listings

Prices up 16% to $279k

Median new build price $311k

Windsor

23% increase in new listings

Prices up 4.6% to $392k

Median new build price $434k

Timnath 

New listings up 19%

Prices Up 4.3% to $436k

Median new build price $524k