Buying a home in Colorado is without a doubt a great investment. Colorado ranks sixth in home price appreciation in the U.S. for 2017 with an annual appreciation of 9.76 percent (and a 59 percent increase over the last five years). That rate of return is a tremendous way to watch your money grow.
However, buying a home can be a daunting task under current market conditions for buyers. Lack of inventory is a serious constraint on sales volume in all NoCo Markets.
Here is what we are facing according to the Multiple Listing Service Summary Reports:
- Number of new listings in March 2018 vs. March 2017 is down 9% for homes and 7% for condos.
- Number of homes under contract is down 2% from March ’17 for homes and 16% for condos.
- Sales of condos are down 16 % from a year ago and again lack of inventory is causing this.
- Single family home prices are up 8.3% for homes and 1.3% for condos over the last year.
- Inventory is a huge problem in Loveland – new listings in March 2018 compared to March 2017 was down 23%!
- Homes under contract the end of March are down 21% from a year ago.
- Sold homes units are down 13% year to date from a year ago.
- Single family home prices are up 9.4% for homes and 13.3% for condos over the last year.
- The number of new listings in March 2018 is up 22% over March 2017 for homes, but down 26% for condos.
- Homes under contract the end of March are up 27% from March ’17 and down 31% for condos.
- Sold homes are down 4% this year compared to last year and really down – 33% for condos. Lack of inventory is driving this.
- Price for homes is up 16% and +0.5% for condos
- This city is one of the last affordable areas in NoCo – demand is rapidly shrinking its inventory – especially for condos. Average price of a home in Greeley is $325K – $415K in Loveland – $455K in Ft Collins.
Do You Have a Plan to Buy a Home?
Recently we did a market analysis for a client of homes priced at around $325,000 in the Fort Collins area. We found 73 homes with similar parameters that had been sold since October 2017. Of these, 22 sold for less than asking price, 16 sold for more than asking price and the rest – approximately 1/2 of the homes – sold for asking price. Generally the above and below asking price sales were within a few thousand dollars of the actual asking price.
If a broker finds an available home that their buyer likes, then the above information indicates the buyer needs to have been prepared to come to the table with a strong offer. It is extremely important that the buyers have been carefully pre-qualified for a loan – or better yet fully qualified for a loan by a top notch mortgage lender.
Being fully qualified for an appropriated loan or having an all-cash offer are the two best scenarios that will turn the head of any seller, but a large earnest money deposit also signifies a buyer is serious too.
In summary, homes simply aren’t on the market for very long. The reality is that there are fewer homes for buyers and they go under contract quickly, which make purchasing a home very difficult for buyers. A buyer needs to have a good broker who knows when homes are listed as well as their up-to-the-minute status. We would be glad to visit with you about how we successfully negotiate the purchase of homes in this extremely tight difficult market. Please contact us so we can help you find that home you have been wanting.