This is the February 2023 Real Estate Market Update for Fort Collins CO
January 2023 was a relatively slow month for Fort Collins, as expected for this time of year. There were 102 home sales, down 7.8% from the 110 sales in December 2022, and down 19.6% from the 122 sold in January 2022. Homes sold for an average of 98.3% of list price in January 2023.
Home prices declined last month. The median price fell 6.1% to $550K from $584K in December 2022, while the average price fell 2.0% to $640K from $653K. These numbers reflect only those homes sold during the month and are within the range of normal monthly fluctuations for this data set.
There were 102 homes for sale in Fort Collins CO at the end of January 2023, a decline of 7.8% from the 110 for sale at the end of December 2022. The month’s supply of inventory fell to 2.2 months, from 2.3 months in December 2022.
Sales Price vs. List Price:
In January 2023, homes in Fort Collins CO sold for 98.3% of asking price, a slight rise from the 98.2% the previous month.
January 2023 saw a slow start to the year for the Fort Collins CO housing market. A combination of typical seasonal slowing combined with economic uncertainty, rising interest rates and inflation dampened any strong enthusiasm for home sales.
While home prices have leveled off in recent months, following last spring's wild ride, they may face inflationary pressures in coming months. These will be somewhat countered by higher interest rates that may depress demand, as well as a “wait and see” attitude by potential buyers concerned about the stability of the economy.
And, on the supply side of the equation, the inventory of available homes will also be subject to the same factors.
When we are comfortable about making general predictions about the future of the housing market, it is generally because we have a good recent data history, and some comfort about the direction of the economy, both in general and locally. While it’s always difficult after a seasonal slowdown, that’s especially true at this particular time.
The 2023 housing market is all going to depend on the economy. And we’re getting a lot of mixed messages about what’s coming:
Will the Federal Reserve raise interest rates further? How will that affect the economy? Will inflation be brought under control? What will happen as a result of recent massive layoffs in the tech sector? Will that spread? What will happen with wages? Will home prices (and rents) continue to rise, or will they begin to decline?
Right now, we don’t really know the answers to any of these questions, either at the national or at the local level. We can take some comfort from the underlying strength of the local economy, but we’re not immune from macroeconomic pressures. We’re just going to have to wait and see how it all plays out.
But stick with us – we’ll do our best to keep you informed of what’s happening and what it may mean. And we’re always available to answer your questions.