This is the September 2022 Real Estate Market Report for Fort Collins CO
Home sales rose in Fort Collins CO in August 2022. There were 233 homes sold, up 6.9% from the 218 sold in July 2022, but down 29.2% from the 301 sold in August 2021. Year-to-date, there have been 1,615 homes sold, down 29.4% from 2021’s 2,089 homes sold in the same period. Homes sold for an average of 99.5% of listing price during August.
Home prices were down in August 2022. The median price of homes sold during the month fell to $575K from $610K in July, a drop of 6.1%, while the average price fell to $638K, down 7.5% from $686K. The market forces at work earlier this year have clearly receded, as inventory gains and reduced buyer demand have impacted the balance between supply and demand.
The availability of homes for sale in Fort Collins CO fell in August 2022, with 364 homes on the market at the end of the month, a drop of 7.4% from July's 364 homes. The Month’s Supply of Inventory (MSI) fell to 1.5 months.
Sales Price vs. List Price:
After an April 2022 peak of homes selling for 105.5% of list price, this indicator has shown a steady decline, now returning to more normal levels. Economic uncertainty, inventory gains and perhaps seasonal effects have returned us to more normal levels.
The big question, now that the market has returned to more familiar territory, is whether it’s going to stay there for a while. There’s no easy answer, and that’s because of economic uncertainty’s impact on perceived risk. There’s a lot of potential downside, with inflation and recession fears and rising interest rates making home ownership a more expensive investment for a larger proportion of the potential buyer pool. That same uncertainty may also impact inventory again, as it dampens the attractions of potential sellers making major lifestyle changes.
We’re also entering a traditionally slower season for real estate. But what has been traditional in the past is an unreliable guide to the future – too much has changed structurally in the economy, and we remain in largely uncharted territory.
Our guess is that the market will be a bit sluggish until we get into 2023 and we all get a better feel for where the economy is going. But there’s little doubt that, from a market stability perspective, we’re now in a better place than we were six months ago. There’s also little doubt that whatever the new “normal” turns out to be, it’s going to be different from the last one.
We'll be watching closely and keeping you up to date here, but if you have questions or just want to talk about the real estate market, please don't hesitate to give us a call.