This is the January 2017 Real Estate Market Update for Fort Collins CO
Home sales rose 7.4% in December 2016 to 218 homes sold, up from 203 sales in November 2016, but down 12.8% from 246 homes sold in December 2015. Looking at the entire year, 2016’s 3,010 sales were 2.5% less than the 3,086 sales in 2015, and 5.7% less than the 3,183 sales in 2014.
Home prices climbed again in December 2016 - the median price rose 2.0% to $365K from $358K in November 2016, and the average price rose 1.3% to $404K from $399K in November 2016. While these numbers show the prices of those specific homes that sold during the month, the long-term trend line indicates that home values are continuing to rise.
Inventory fell again, as is expected for this time of year, dropping 13.0% in December 2016 to 315 homes for sale, down from 356 at the end of November 2016. The Month’s Supply of Inventory (MSI) fell to 1.4 months, indicative of a strong seller’s market.
2016 was an interesting year for the Fort Collins real estate market. Home sales were lower than the previous two years, but not because of a lack of buyer demand - a persistent shortage of homes available for sale not only depressed sales activity, but also gave impetus to a steady and significant increase in home values. Looking ahead, there are no regional factors that would suggest a slowing of demand - regional job growth is expected to remain strong, so it would appear that the best prospects for seeing a more balanced market would have to come from homeowners finally being sufficiently incentivized by rising prices to offer their homes for sale and enter the market as “move-up” buyers themselves. We’ll be looking for signs of that in early spring, 2017.
If you would like to take a look at what's on the market, check out Homes for Sale in Fort Collins CO. When you see a home that you'd like a closer look at, please give us a call - we'd be delighted to schedule a showing for you at your convenience.