Northern Colorado Real Estate Market Update
In the spring Colorado’s stay-at-home orders brought the real estate market to a standstill. But as restrictions slowly relax, the Northern Colorado real estate market is showing signs of heating up.
Northern Colorado market overview
Communities across Colorado are seeing a rush of buyers after slower months in March and April when buyers were under state stay-at-home orders.
With restrictions easing we are seeing buyers quickly enter back into the Northern Colorado market. Sellers however have been slower to list homes.
With increased competition for available homes, Northern Colorado’s already rising housing costs are inching even higher. Greeley’s median sales price hit $321,000 with Loveland hovering around $400,000. Fort Collins saw median home prices hit close to $450,000.
What does this mean?
Right now in the Northern Colorado market we are seeing an increase in demand, low inventory, record-low mortgage rates, and rising prices. Inventory is extremely low, putting pressure on buyers to act fast and creating a competitive market for homes.
Percent of list price received.
99.5% of Colorado homes sold in June received the asking price. This is up 0.1% compared to June 2019.
Average days on market.
The average days a listed home sits on the market in June was 39 days. This is down 2.5% compared to the same time period last year. Colorado homes are continuing to sell fast and at high price points.
Listed homes on the market fell to 33.3% in June year-over-year. The Northern Colorado market is continuing to see low inventory and even more so during the pandemic. Low inventory has been driving high home prices prior to and during the pandemic.
New listings and pending contracts
As we saw with the month’s supply down 33%, the number of new listings was also down 6.3% in June. And pending contracts are down 1.2%.
What do we expect to happen?
No one can predict the Northern Colorado market and Covid-19 has increased uncertainty but there are a few things we expect to see as we head into the fall of 2020.
- Near-record low interest rates: Perhaps the best trend in home buying during Covid-19 is mortgage rates remain at near-record lows. According to Freddie Mac, mortgage rates continue to slowly decline with an average 30 year fixed mortgage hovering around 3 percent. Record low mortgage rates are likely to remain in place for the rest of the year.
- Home prices continue to rise: There are no indications this will ease. If anything the pandemic has put even more pressure on inventory as sellers held off listing earlier in the year. Forecasts show pricing continuing to rise throughout the year.
Even with the recent changes in real estate that Covid-19 brings, the Northern Colorado market still stands strong.
Real estate in Northern Colorado is selling nearly as briskly as it was before Covid-19.
If you have questions or want to discuss the Northern Colorado market and how it affects you, reach out to me today. I would love to hear from you and am always available to answer questions and discuss my home Northern Colorado market with you.