Home sales in July 2014 were essentially unchanged from June 2014, with 330 homes sold, but down 16.1% from 383 in July 2013. This is most likely the inevitable consequence of low inventory, and unwelcome news for what should have been one of the year’s strongest sales months. We’re likely to see this moderate slowing continue for the remainder of the year.

Home prices are moving upward, with median price climbing to $290K in July 2014, an increase of 5.4% from $275K in June 2014, and average price up to $331K, a 5.7% increase from $313K. While these numbers are only reflective of the homes that sold in the specific month, and are mostly useful as data points for the trend line, this result is probably due to low inventory and more competition for homes pushing prices upward.

The inventory of homes for sale grew slightly in July, 2014, up 2.7% to 1174 homes from 1143 in June 2014, but down 4.1% from the 1222 homes on the market in July, 2013. 41% of those 1174 homes are already under contract. We have pretty much run through the part of our annual real estate cycle in which we would expect to see inventory increasing, so it’s unlikely that current levels of buyer demand will be addressed by rising inventory this year.

Summary:

The July 2014 market data is basically a continuation of what we have been seeing for the last several months: strong buyer demand, insufficient inventory to meet that demand and provide market balance, and rising prices as a result. There is little expectation of any change in these conditions for the remainder of the year - with on-going improvement in the regional economy, buyer demand should stay strong and it is unlikely that inventory will grow much beyond its present size. 2014 is shaping up to be a good year for real estate, but one that didn’t realize its full potential.

If you would like to take a look at the homes for sale in Fort Collins, check out the Current Inventory. If you see something interesting, please give us a call - we'd be happy to schedule a showing at your convenience.