Loveland CO has been a hot real estate market for several years. As the regional economy has prospered, population and employment have experienced significant growth, while housing availability has not kept pace. The result has been a case study in the basic economic concept of supply vs. demand.
The essential indicator for starting to look at the current situation is Month's Supply of Inventory. i.e. how long it would take for all of the homes on the market to sell at the current sales rate. Anything below 3 months is considered a strong seller's market; above 6 months is considered a strong buyer's market; and in between lies a range where the market is tending towards a balanced state. Here's what MSI has looked like over the last 5 years for Loveland:
Seller's markets are characterized by strong competition among buyers for available homes, with rising prices and shorter market times. Here's what Loveland homes have been selling for as a percentage of asking price:
Buyer competition, often accompanied by multiple offer situations, drives prices higher, and in Loveland's case, those increases have been substantial, as can be seen by the chart below:
Rising cost per square foot is another side of that same coin - the same price will buy less home today, or conversely, the same size home will cost more. So a hot real estate market will result upward price movements, and Loveland has certainly seen that:
In two follow-up posts, we'll take a closer look at both demand and its resulting expansion of the buyer pool, and supply and why there aren't enough homes for sale.
In the meantime, if you'd like to take a look at the homes that are currently on the market, check out Loveland CO Homes for Sale. And if you should happen across anything interesting, please give us a call - we'd be delighted to schedule a showing for you - and help you achieve your goals in this interesting and challenging market.
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