Our Stabilizing Market

[ 0 ] September 20, 2017 |

In Northern Colorado, anyone paying attention knows the real estate market of the past few years has been booming for sellers. Based upon firsthand experience, without looking at a single stat, we would tell you homes are much more attainable now as compared to 2014-2016. In the three previous years, it was very difficult for a buyer to have an offer accepted on any home priced under $400k — even if they offered more money, and even if they removed some (or all) of the contract contingencies. While the current Northern Colorado real estate market is still skewed toward sellers, it’s no longer ONLY a sellers market.

This is our experience, but what do the stats say? We looked at the past three years’ sales in the Brown Farm neighborhood in Fort Collins, during the months of June 15 to August 15. We chose this neighborhood because it’s large (which means there would be plenty of data), and because the price range is generally average for Fort Collins. This is what we found:

 

YearAverage %
over asking
Percentage change
from previous year
Average
Sales Price
2014101%19% Increase$255,000
2015103%11% Increase$283,500
2016102%16% Increase$330,000
2017101%7% Increase$353,000

The market, while still strong, is slowing down. There is no longer a frenzy of multiple offers pouring in for each listing: while some properties may still receive more than one offer, it’s no longer standard to see a long queue of offers for every property that hits the market. This is not to say there aren’t still special properties that will create excitement and significant interest; that will always be the case. However, buyers who may have previously left the market out of frustration may want to reconsider. With the right expectations, current buyers will likely find more options.

And for sellers? While the market of the past three years has been strongly in the seller’s favor, most sellers were also then entering as buyers, and “moving up” was challenging. The current market is still very strong for sellers, but should also allow for more opportunities for those wanting to upgrade. And, there are still many opportunities to distinguish your home from the competition, in this and in any market.

Possible takeaways:

  • Our market is stabilizing, not declining.
  • Previously unsuccessful turned burned-out buyers should consider a return to the market.
  • Balancing market may allow more opportunities for sellers to upgrade.

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