This is the September 2019 Real Estate Market Update for Fort Collins CO
Home sales experienced a bit of a resurgence in August, usually one of our slower months. There were 291 sales, a gain of 7.8% over the 270 sales in July and the second highest sales total for this year. 2019 Year-to-date home sales of 1,870 are down 5.6% from the 1,974 sales for the same period last year.
Home prices in August fell slightly. The median price of $420K was down 3.3% from $434K in July 2019, while average price fell to $454K from $459K in July, a 1.1% drop. The long-term trend line, which gives us a better feel for home values, continues to suggest an easing in upward pressure on prices as demand has moderated over this year. and will vary randomly from month to month, so we prefer the long term trend line as the best indicator for watching price, and value, trends.
The Fort Collins inventory of available homes hit another three year high, with 618 homes for sale at the end of August 2019, a 1.1% gain from 611 homes for sale at the end of July 2019. The Month’s Supply of Inventory (MSI) fell to 2.1 months, in response to the high number of sales last month, and is still in seller’s market territory.
While the slight resurgence in home sales in August was a bit unexpected, we’re seeing prices ease somewhat as a result of the year’s lower overall sales results. More inventory and lower sales have cooled the market and we are heading into slower times. But we still see a lack of balance at the market’s lower end, as affordable housing options have all but disappeared. And the market is far from being considered a weak one, as the strength of the regional economy continues to generate demand from new jobs. Uncertainty regarding the national economy will most likely play the defining role in coming months.