With scant inventory and the usual seasonal slowing, December 2021 home sales in Fort Collins CO declined as expected. There were 202 home sales, down 13.3% from the 229 sold in November 2021, and down 16.3% from the 235 sold in December 2020. Total 2021 sales of 3,050 were up 1.5% over 2020's 3,004 total sales.

Prices:

Home prices continued their upward movement in December 2021. The median price rose to $560K from $525K in November 2021, up 6.7%, while the average price increased to $641K from $603K, up 6.3%. The median price was up 20.1% over 2021, and the average price was up 18.0%.

Inventory:

The inventory of available homes declined sharply last month in Fort Collins CO. There were 61 homes for sale at the end of December, a drop of 51.6% from December's 126 homes. The Month's Supply of Inventory (MSI) fell to 0.3 months - about 10 days worth.

Summary:

Pandemic effects, economic uncertainty and seasonal slowing have all combined to create a uniquely weird real estate market. Let's begin with the fact that the entire market is functioning well below what would be equilibrium for an area of this size and population. While we've never seen the inventory of homes available for sale anywhere near the current levels, low inventory is just one of the factors at work here. We're also seeing a dramatic shrinking of the buyer pool, as the laws of supply and demand raise home prices, and stiff competition limits participation to buyers able to make very attractive offers. While home prices will most likely not decline with anything short of widespread economic difficulty, it's probably going to take time and a sustained and broad recovery to bring the market back to anything approaching long-term stability. We'll likely be seeing current conditions extended well into 2022.