Market Conditions for Fort Collins, Colorado Reported by B.J. Johanningmeier, GRI, MCSP, ePRO, CMP Updated July 5, 2008.

Current Market Rating: 2 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 4 1 2 3 4 5 Falling Rising

Fort Collins has been ranked the No. 1 "Best Place to Live" in America among 745 places with populations greater than 50,000, according to MONEY Magazine. They cited its natural setting, vibrant downtown, and the presence of Colorado State University.

"With an educated workforce, solid labor supply, steady job growth and a cost of living that's below the national average, the Fort Collins/Loveland area ranked third on Forbes' 2008 Top 10 Places for Business and Careers. That's up 25 spots from last year's 28th-place ranking."

Also, BusinessWeek named Fort Collins in its "20 Best Affordable Suburbs in the West."

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Sales statistics for the month of JUNE are included here.

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"But who can accurately appraise a home's worth in a market that has seen a 16 percent drop in prices nationally over the past year? Collateral in many houses is still fading like a Cheshire cat's grin."

~The Christian Science Monitor
June 27, 2008

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You have come to the right place for accurate and specific reporting of current real estate market conditions for Fort Collins, Colorado, and surrounding area. Here you will find targeted narrative and statistical reporting designed specifically to give you the most recent and best possible information to assist you in your decision-making regarding buying or selling real estate in Northern Colorado.

On Wednesday 25 June 2008, the Federal Open Market Committee decided to keep the fed funds rate at 2%. As of June 19th, the futures market was fully pricing in a rate hike by the end of September.

However, it is important to point out that mortgage interest rates are not tied directly to short-term rates controlled by the Fed, but rather to the yield on 10-year U.S. Treasury Bonds (at least, historically), but increasing default rates are causing a disconnect here. Mortgage interest rates are dictated by the market for mortgage-backed securities and what buyers of those mortgages are willing to pay, not by what the Fed dictates.

The Mortgage Bankers Association said mortgage application volume rose 3.6% for the week ended June 27th. Refinance volume increased 2.7% during the week, while purchase application volume increased 2.8%. Borrowing costs on 30-year fixed-rate mortgages, excluding fees, decreased to 6.33 percent from 6.39 percent, with points decreasing to 1.09 from 1.12 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The four week moving average is up 0.7 percent to 353.2 from 350.8 for the Purchase Index, while this average is down 4 percent to 1370.5 from 1427.2 for the Refinance Index.

With more inflation in the pipeline due to the falling dollar, it is more likely that interest rates will be trending higher rather than lower over the rest of the year.

Sellers whose property is overpriced for the current market are taking a very considerable risk of loss in value. Sellers have a choice of correct pricing for the current market, or remaining overpriced until the depreciating U.S. dollar becomes worth much less.

We report median prices rather than average prices because they are a more reliable indicator of current trends. The median is simply the middle price; half the buyers paid more and half paid less. Some reporters use average real estate prices, which are usually higher than median prices, because they include some very expensive properties that skew the central tendency upward.

However, now the median price is being skewed downward because of the difficulty that subprime borrowers are having refinancing or qualifying for jumbo mortgages (loans exceeding the limit for what government-chartered Fannie Mae and Freddie Mac can buy). This is likely to become increasingly difficult in coming months as lenders tighten standards and as home prices drop.

For the month of June, 2008, here are the numbers for SINGLE FAMILY HOME and MULTI-FAMILY (Condo and Townhouse) sales:

In Fort Collins, during this period there were 283 single family homes sold (as compared with 322 during the same period last year), down 12.11% from the same period last year; new median price $240,000 (up 0.84% from the same period last year, when the median price was $237,990). Twenty-three (23) new homes were sold (median price $287,500), as compared with forty-seven (47) new homes sold (median price $237,990) in June last year, down 51.06% in number of homes sold, but up 20.8% in median price.

Also, in Fort Collins, 81 condos were sold (median price $147,000), as compared with 82 sold in June last year (median price $145,000), down 1.22% in the number of units, but up 1.72% in median price. Ten (10) new condos were sold (median price $172,000), as compared with eight (8) new condos (median price $176,000) sold in the same period last year, up 25% in number of units, but down 2.27% in median price.

In Fort Collins, in June, we had 4.55 sellers for every buyer of homes on the market priced under $250,000; 5.46 sellers for every buyer of homes priced from $250,000 to $350,000; 6.42 sellers for every buyer of homes priced from $350,000 to $450,000; 15.14 sellers for every buyer of homes priced from $450,000 to $600,000; 17.63 sellers for every buyer of homes priced from $600,000 to $1,000,000; and 15.25 sellers for every buyer of homes priced above $1,000,000. [Only 16.81% of all available listings were sold. The ones that were priced correctly, i.e., the ones that sold, were on the market for an average of 92 days.]

In Windsor, during this period, 25 single family homes were sold, median price $422,000, as compared with 60 single family homes sold in June of last year, median price $262,000 (down 58.33% in number of homes sold, but up 61.07% in median price). Six (6) new homes were sold, median price $493,000, as compared with sixteen (16) new homes sold in June of last year, median price $429,000 (down 62.5% in number of homes sold, but up 15.12% in median price).

In Windsor, in June, we had 22.75 sellers for every buyer of homes priced under $200,000; 19.63 sellers for every buyer of homes priced from $200,000 to $350,000; 36 sellers for every buyer of homes priced from $350,000 to $450,000; 21.17 sellers for every buyer of homes priced from $450,000 to $600,000; and 28.25 sellers for every buyer of homes priced from $600,000 to $1,000,000. No homes priced above $975,000 were sold, although 16 were available. [Only 6.11% of all available listings were sold. The ones that were priced correctly, i.e., the ones that sold, were on the market for an average of 113 days.]

In Johnstown, during this period, twenty (20) single family homes were sold, median price $219,250 (as compared with twenty-one (21) sold during the same period last year, median price $230,000); down 4.76% in number of homes sold, and down 4.67% in median price. Only one (1) new home was sold, price $501,225, as compared with six (6) new homes sold (median price $225,000) in June last year.

Also, in Johnstown, no condos were sold in June this year, as compared with one (1) sold in June last year (price $165,000).

In Johnstown, in June, we had 10.31 sellers for every buyer of homes priced under $250,000; seven (7) sellers for every buyer of homes priced from $250,000 to $300,000; and 26 sellers for every buyer of homes priced above $300,000. [Only 9.05% of all available listings were sold. The ones that were price correctly for current market conditions, i.e., the ones that sold, were on the market for an average of 85 days.]

In Berthoud, twelve (12) single family homes were sold, median price $210,000, as compared with thirteen (13) single family homes sold in June of last year, median price $450,000 (down 7.69% in number of homes sold and down 53.33% in median price). One new home was sold (price $520,000), as compared with four (4) new homes sold in June of last year, median price $430,000.

In Loveland, 119 single family homes were sold, as compared with 151 sold in June of last year; new median price $225,000 (down 21.19% in number of homes sold, but up 2.27% in price from the same period last year, when the median price was $220,000). Fifteen (15) new homes were sold (median price $295,000), as compared with twenty-four (24) sold in June last year (median price $329,453), down 37.5% in number of new homes sold, and down 10.46% in median price.

Also in Loveland, seven (7) condos were sold, median price $150,000, as compared with twelve (12) sold in June last year, median price $144,500 (down 41.67% in number of units but up 3.81% in median price).

In Loveland, in June, we had 7.71 sellers for every buyer of homes priced under $250,000; 8.56 sellers for every buyer of homes priced between $250,000 and $350,000; 11.43 sellers for every buyer of homes priced between $350,000 and $450,000; 48.5 sellers for every buyer of homes priced between $450,000 and $600,000; and 93 sellers for every buyer of homes priced between $600,000 and $1,000,000. No homes sold for more than $655,000, although 118 were available. [Only 10.12% of all available listings were sold, and the ones that sold were on the market for an average of 131 days.]

In Greeley, 104 single family homes were sold, as compared with 117 sold in June last year, down 11.11%; new median price $145,000 (down 4.61% from last year, when the median price was $152,000). Five (5) new homes were sold, median price $298,000 (as compared with eleven (11) new homes sold last June, median price $300,000); down 54.55% in number of units, and down 0.67% in median price.

In Boulder, 112 single family homes were sold, as compared with 168 sold in June last year, down 33.33%; new median price $532,500 (down 2.65% from the same period last year when the median price was $547,000).

[Source: Information Real Estate Services, IRES]

WORD TO THE WISE: The number of Americans able to find prospective buyers for their homes has fallen to a record low since August 2007. The surprisingly sharp fall suggests that the housing market is continuing to decline since lending conditions tightened and credit markets seized up over last summer.

Sellers who have their property priced too high may find themselves with NO SALE or CHASING THE MARKET DOWNWARD, eventually having to settle for MUCH LESS than they could have gotten by correct pricing from the beginning.

Resellers are having a very tough time competing with new home sales, since homebuilders (in many cases) are liquidating assets in desperation sales. Often, they are selling new homes at any price they can get, in addition to which they are throwing in huge buyer incentives that make such deals impossible to resist. Also, there is a huge "shadow inventory" out there, including not only foreclosures, but also frustrated sellers who have temporarily taken their homes off the market, and others who are waiting to enter it.

So, if you don't need to sell, you should not be in the market now. You are almost certainly not going to realize any profit on your sale. Moreover, you definitely need to be priced at or BELOW current fair market value (as determined by a VERY RECENT comparative market analysis or professional appraisal) to generate a sale. Homes priced "right on the money" will sell. Buyers with poor credit have essentially been closed out of the market now, and buyers with sterling credit (and a sizeable down payment) have the luxury of waiting now. The longer they can wait the better deal they are likely to get.

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Deciding to sell or buy a home is a big step. Make sure it's a step in the right direction by choosing the person best qualified to handle your real estate needs: a RE/MAX Sales Associate.

ZIP Codes: 80521, 80522, 80523, 80524, 80525, 80526, 80527, 80528, 80553, 80537, 80538, 80539, 80550, 80551, 80620, 80631, 80632, 80633, 80634, 80638, 80639, 80534, 80513, 80534, 80546, 80549

Location Characteristics: Northern Colorado - Front Range of the Colorado Rocky Mountains


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