This is the March 2021 Real Estate Market Update for Fort Collins CO
Fort Collins home sales rose in March 2021. 236 homes sold, up 40.5% from the 168 homes sold in February 2021, and up 2.6% from the 230 homes sold in March 2020. While the increase from last month was substantial, it was similar in pattern to previous March results.
Home prices also rose in March 2021. The median price gained 2.7% to $495K from $482K in February 2021, while the average price gained 7.4%, to $579K from $539K. Over the last year, Average prices have risen $104K, while median prices have risen $70K.
Inventory remains at critically low levels, far insufficient to meet demand. There were only 128 homes for sale in Fort Collins CO at the end of March 2021, a drop of 3.9% from February 2021’s 133 homes for sale. The Month’s Supply of Inventory (MSI) fell to 0.5 months, as sales outpaced inventory.
This is obviously not going to be a normal spring season for real estate. While buyer demand is strong, and seems to be growing, historically low inventory levels are putting strong upward pressure on home prices. At some point, as we continue to make progress with the pandemic, those higher prices will incentivize more homeowners to offer their homes for sale. But that upward price movement is being seen in all segments of the market, so sellers may face price as well as availability issues in finding suitable replacements. This is all going to take some time to play out and reach some equilibrium, so we expect the market to remain chaotic for at least the next several months, with sellers holding the upper hand and buyers facing strong competition and limited choice.