Home sales were up sharply in May 2015, to 374 homes sold, an increase of 43.3% over the 261 sales in April 2015, and up 7.8% from the 347 sales in May 2014. Demand remains strong, particularly in the lower and mid-price ranges.

Home prices declined in May 2015. Median price dropped to $295K, a drop of 8.1% from $319K in April 2015, while average price fell 14.4% to $312K from $357K in April 2015. It must be noted that these numbers are for sales for May only, and show that buyers were more active in lower and mid price ranges, rather than reflecting any true loss in value.

We are now reporting inventory and months supply of inventory (MSI) only for those homes that are listed as actively available. Inventory increased 15.7%, to 522 homes on the market in May 2015, from 451 in April 2015, but was down 23.9% from 647 homes in May 2014. Of more concern, the MSI dropped to 1.4 months in May 2015, from 1.7 in April 2015, indicating a very strong seller’s market.

Summary:

While sales increased, the real estate market continues to tilt heavily in favor of sellers, with insufficient available inventory to provide market balance. The price declines of May are almost certainly indicative of buyer activity rather than any change in underlying value - in fact, home values in the low-to-mid price ranges are increasing rapidly. And we expect buyer demand to remain strong, as the regional economy is showing steady signs of growth and expansion.

If you're curious about what is currently for on the market, take a look at Homes for Sale in Fort Collins. If you see something you would like a closer look at, please let us know - we would be delighted to schedule a showing for you at your convenience.