This is the June 2023 Real Estate Market Update for Fort Collins CO
Fort Collins CO home sales rose in May 2023. 232 homes sold, 34.1% up from the 173 sales in April 2023, but down 3.8% from the 241 sold in May 2022. Of these 232 homes, 191, or 82%, were priced over $500K. 2023 sales of 810 homes were down 10.3% from 2022’s 894 sales for the same period.
Home prices were mixed in May 2023. The median price declined 2.0% to $596K from $608K in April 2023, while the average price gained 5.1% to $698K from $664K. 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 rose sharply in Fort Collins CO in May 2023. There were 375 homes for sale at the end of the month, an increase of 47.6% from the 254 for sale at the end of April 2023. The month’s supply of inventory rose to 1.6 months, as inventory gained a bit more than sales.
Sales Price vs. List Price:
In May 2023, homes in Fort Collins CO sold for 100.2% of asking price, up from the 99.6% of the previous month.
The Fort Collins CO real estate market became much more active in May 2023. Sales and home inventory both increased significantly, while prices were mixed but basically stable. In fact, inventory reached levels not seen since summer 2020.
So does this mean that the real estate market is returning to normality? Probably not, given that so much has changed since we were last able to describe a market as “normal”. More likely, we’re seeing the market adjusting to significant changes in underlying factors affecting the economy. And unlike a few past notable instances, real estate is not driving any of these changes, but is very responsive to them.
However, the fact that our indicators are moving in a generally positive direction is cause for cautious optimism. Cautious, because we still have concerns: the persistence of inflation, higher interest rates, and the lack of available housing have priced a significant portion of our population out of the market; employment instability may play a part in the sharp rise in inventory; and a pervasive sense of uncertainty about the future of the economy is inhibiting investment overall. It’s probably going to take a more resolved socio-economic-political environment to generate a real estate market that could be characterized as “normal”.
The market is becoming more settled and focused, however. Homes are selling, but that’s mostly those that are priced correctly – there’s no current reward for over-enthusiasm. Prices are stable-to-rising, and there are currently enough homes to meet demand.
We’ll be watching the market, as well as those factors most affecting it, very closely in the coming months, and doing our best to keep you informed. If you have any questions or concerns in the meantime, don’t hesitate to give us a call. We’re always available to help.