Home sales rose in Fort Collins CO homes in May 2022. There were 241 sales, an increase of 11.6%, over the 216 sold in April 2022, but down 23.7% from the 298 sold in May 2021. Year-to-date, 894 homes have sold, down 25.2% from 2021’s 1,119 homes sold in the same period. Homes sold for an average of 104.3% of listing price during last month.

Prices:

Home prices fell in May 2022. The median price dropped to $620K from $621K in April 2022, a 0.2% decline, while the average price was down 5.2% to $690K from $726K. Gains in inventory may be starting to moderate upward price pressure.

Inventory:

There was a significant increase in inventory in Fort Collins CO last month. There were 226 homes for sale at the end of the month, up 63.8% from Aprils 138 homes, and the highest level since August 2021. The Month’s Supply of Inventory (MSI) rose to 0.9 months.

Summary:

The Fort Collins real estate market is changing, driven by two months of significant increases in home inventory. This has begun to ease the upward pressure on prices, and it’s a bit less frenzied and crazy out there at the moment. But the market is still a long way from finding some sort of equilibrium, and we can’t expect a return to what we used to think of as “normal”. Recession and inflation are likely to diminish the potential for quick recovery. And the price increases of the last several years have taken the bottom out of the market, excluding a large pool of potential buyers from participation. We’re not expecting to see those prices fall, nor are we expecting to see wages keep pace with inflation. With so many different external factors at work here, it’s still very unclear how this will play out, but it’s likely that at least in the immediate future, we’re going to see the market become a challenging one for sellers as well as buyers.