This is the May 2023 Real Estate Market Report for Fort Collins CO
Fort Collins CO home sales declined slightly in April 2023. There were 173 homes sold, a drop of 2.8% from the 178 sales in March 2023, and a drop of 24.9% from the 216 sold in April 2022. Of these 173 homes, 132, or 76%, were priced over $500K.
Home prices were down last month. The median price fell 2.4% to $608K from $623K in April 2023, while the average price fell 2.8% to $664K from $683K. These changes fall within the normal range of month-to-month variations in the prices of homes sold, and are consistent with the recent trend line for this indicator.
Home inventory was up again in Fort Collins CO in April 2023. There were 254 homes for sale at the end of the month, a rise of 17.1% from the 217 for sale at the end of March 2022. The month’s supply of inventory rose to 1.5 months, as inventory gains outpaced sales.
Sales Price vs. List Price:
In April 2023, homes in Fort Collins CO sold for 99.6% of asking price, up from the 99.2% of the previous month.
It’s not really surprising that the Fort Collins CO housing market isn’t looking like a typical spring season.
While sales have increased, we’re off to a slower start to what should be a fairly busy time. Sales continue to be concentrated on the higher end of the market. The price trend, particularly for median prices, has been mostly flat over the last year. And it’s worth pointing out that this flatness is masking inflation somewhat – a $500k home today has fewer features and size than a $500k home of a couple of years ago. Inventory is at its highest level since October 2020, and has become much less of a factor in what’s going on, while the sale price vs. list price index is starting to creep upward.
So, what is going on? The most likely factors influencing the real estate market are now firmly on the demand side of the equation. The fact is that fewer people can afford to buy a home as rising interest rates and inflation eat into disposable income. Employment instability and uncertainty about the economy make large investments appear more risky. And the bottom of the market continues to move upward, limiting the pool of potential buyers because of affordability.
The real estate market appears stable for now, but is in a generally reactive mode, and isn’t likely to change much until there is more clarity about where the economy is heading. 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.