This is the March 2023 Real Estate Market Report for Fort Collins CO
Home sales rose in February 2023 in Fort Collins CO, with 125 sold, an increase 22.5% from the 102 sales in January 2023, but were down 12.0% from the 140 sold in February 2022. Homes sold for an average of 98.8% of list price in February 2023.
Home prices were up last month. The median price gained 7.2% to $590K from $550K in January 2023, while the average price gained 1.9% to $652K from $653K. Some of this increase is due to most sales activity during the month occurring in the higher price ranges, as affordability issues affect lower range buyers.
Home inventory declined in Fort Collins CO at the end of February 2023. There were 207 homes for sale at the end of the month, down 10.6% from the 229 for sale at the end of January 2022. The month’s supply of inventory fell to 1.7 months, from 2.2 months in December 2022.
Sales Price vs. List Price:
In February 2023, homes in Fort Collins CO sold for 98.8% of asking price, up from the 98.3% the previous month.
The Fort Collins CO housing market is still in the winter doldrums, but that’s not the only factor behind this month’s numbers.
We’ve seen a shift in activity towards the higher end of the market. The impacts of last year’s early surge in prices, combined with continuing uncertainty about the state of the economy and rising interest rates, have limited buyer demand from the lower and middle ranges of the income spectrum.
Home sales have consequently skewed a bit toward the upper-mid to higher price ranges, where activity could currently be described as moderate. And this skewing is enhanced by the relative scarcity of available homes in the lower to lower-mid ranges. At the end of February, only 16% of the homes on the market in Fort Collins CO were priced at $500K and below.
Home prices have been relatively stable so far this year, with little evidence of inflationary pressure from external sources. While imbalances between supply and demand remain a significant factor, they are both caused and moderated by concern about the future of the economy and especially rising interest rates.
Inventory has yet to begin its usual spring recovery, which we also expect to be impacted by economic uncertainty.
In other words, there is no clarity yet as to where the 2023 real estate market may be heading. We’re at the mercy of outside factors that have yet to reveal fully how they’re going to impact the local market. As always, we’ll be watching closely and we’ll do our best to keep you informed. And, as always, we’re here to answer any questions you may have.