TheFort Collins housing marketin 2024 shows a dynamic landscape with various trends and statistics revealing the current state. The data provided by theFort Collins Board of REALTORS®for June 2024 highlights several key changes and developments in both the single-family and townhouse-condo segments of the market. Here are the latest trends in this housing market.
How is the Fort Collins Housing Market Doing in 2024?
New Listings and Pending Sales
According to the latest data:
- New Listingswere down5.3 percentforsingle-family homesbut increased7.2 percentfortownhouse-condo properties.
- Pending Saleslanded at188forsingle-family homesand77fortownhouse-condo properties.
The decrease in new listings for single-family homes suggests a possible tightening in inventory, while the increase in townhouse-condo properties indicates a growing interest in this segment. The pending sales figures show a steady demand across both property types.
Home Price Trends
TheMedian Sales Pricefor June 2024 reveals mixed trends:
- The median price forsingle-family homesremained flat at$620,000.
- Fortownhouse-condo properties, the median price increased by2.8 percentto$424,995.
The stability in the median sales price for single-family homes indicates a balanced market, whereas the rise in prices for townhouse-condo properties reflects their increasing popularity and potentially higher demand.
Days on Market
TheDays on Market(DOM) metric has shown significant changes:
- The DOM forsingle-family homesincreased by23.1 percent.
- The DOM fortownhouse-condo propertiessaw a sharp rise of84.4 percent.
The increase in days on market for both segments indicates that properties are taking longer to sell, suggesting a potential shift towards a buyer’s market or a cooling down of the rapid sales pace seen in previous years.
Analysis and Insights
Inventory Levels
The reduction in new listings for single-family homes points towards a tightening in inventory, which could lead to increased competition among buyers and potentially higher prices if demand remains strong. On the other hand, the rise in new listings for townhouse-condo properties may offer more options for buyers looking in this category.
Housing Market Balance
The flat median sales price for single-family homes and the slight increase in townhouse-condo prices suggest a relatively balanced market. However, the significant increase in days on market might indicate that buyers are taking more time to make decisions, possibly due to economic factors or changing market conditions.
Future Trends
Looking ahead, if the trend of increasing days on market continues, sellers may need to adjust their pricing strategies or offer more incentives to attract buyers. The demand for townhouse-condo properties is expected to remain strong, given their affordability compared to single-family homes.
Fort Collins Housing Market Forecast 2024
Fort Collins, a city nestled in the northern part of Colorado, boasts a vibrant housing market that has been steadily growing in recent years. The housing market inFort Collins, COhas shown a steady increase in home values over the past year. As of May 31, 2024, theaverage home valuein Fort Collins stands at$569,556, marking a2.2% increasefrom the previous year. Homes in this market typically go to pending in around8 days, indicating a brisk pace in transactions.
Current Market Statistics
The following statistics provide a snapshot of the current housing market in Fort Collins as of May 31, 2024:
- Median sale to list ratio:0.999
- Median sale price:$
- Median list price:$618,000 (as of June 30, 2024)
- Percent of sales over list price:38.9%
- Percent of sales under list price:35.4%
Analysis of Key Metrics
Median Sale to List Ratio
Themedian sale to list ratioof0.999indicates that, on average, homes are selling very close to their list price. This suggests a balanced market where buyers and sellers are on relatively equal footing.
Median Sale Price
Themedian sale priceof$573,483reflects the mid-point of all home sales prices in Fort Collins. This figure provides a clearer picture of the market’s direction and helps to filter out extreme highs and lows.
Median List Price
As of June 30, 2024, themedian list priceis$618,000. This figure is slightly higher than the median sale price, indicating that sellers are setting optimistic prices, but the market is adjusting slightly lower at closing.
Percent of Sales Over and Under List Price
With38.9%of sales closing above the list price, there is strong competition among buyers for desirable properties. Conversely,35.4%of sales are below the list price, showing that there are opportunities for buyers to negotiate deals, especially in less competitive segments of the market.
MSA Forecast
The forecast for the Fort Collins MSA suggests a period of stabilization followed by a slight decline in home values:
- By June 30, 2024: The home values are expected to remain stable with0% change.
- By August 31, 2024: A minor decline of0.6%is anticipated.
- By May 31, 2025: A more significant decline of3%is projected.
Conclusion
In summary, the Fort Collins housing market has experienced a2.2% increasein home values over the past year, with homes moving to pending status in around8 days. While the current market shows a balanced sale to list ratio and strong buyer competition, the forecast indicates a potential softening with slight declines in home values over the next year. Buyers and sellers should stay informed and consider these trends when making real estate decisions in the Fort Collins area.
Should You Invest in the Fort Collins Real Estate Market?
Northern Colorado city Fort Collins is regarded as one of the most desirable places to reside in Colorado. Fort Collins, with a population of over 170,000, has a thriving economy, exceptional schools, and a thriving culture. Colorado State University is located in the city, which contributes to its vibrant and educated population. All of these factors have made Fort Collins an attractive real estate investment location.
The city's robust rental market is one of the primary reasons why Fort Collins is an excellent real estate investment opportunity. Consistently robust, due to the high demand for housing from students, families, and young professionals. In addition, the city's stringent zoning regulations restrict the number of rental properties, resulting in a limited supply of rental units. This circ*mstance leads to high rental costs and low vacancy rates.
Fort Collins's housing market has also experienced consistent growth over the years, making it an ideal location for real estate investors. Fort Collins's real estate market is diverse and offers a variety of investment opportunities. Investors have the option of purchasing single-family residences, condominiums, townhomes, and even commercial properties. In addition, the city's robust economy has led to a growing demand for commercial real estate, providing investors with an excellent investment opportunity.
Additionally, investors in Fort Collins benefit from the city's tax policies, making it a low-cost investment option. Colorado has no estate or inheritance tax, and its property tax rates are among the lowest in the nation.
Overall, Fort Collins presents a unique opportunity for real estate investors. With a robust rental market, a thriving economy, and a diverse real estate market, investors can find opportunities that align with their specific objectives.
Top Reasons to Invest in Fort Collins Real Estate
There are several compelling reasons why investing in Fort Collins real estate can be a smart decision. Here are some of the top reasons to consider:
- Strong Market Fundamentals: Fort Collins has a thriving economy, a stable employment market, and a consistently high standard of living. These factors make the area appealing to both renters and homebuyers, thereby assuring a steady demand for real estate.
- Diverse Housing Options: Fort Collins provides a variety of housing options, ranging from affordable apartments to luxury residences, making it an attractive market for investors with varying budgets.
- Proximity to Denver: Fort Collins is a little more than an hour's journey from Denver, one of the fastest-growing cities in the United States. This makes Fort Collins an attractive option for people who work in Denver but prefer a smaller, tranquil community.
- Strong Rental Market: Fort Collins has a robust rental market due to its large student population, as well as its growing number of young professionals and families. This affords investors opportunities to generate consistent rental income.
- Appreciation Potential: Fort Collins real estate has historically appreciated at a consistent rate, and with the city's expanding population and robust economy, there is the potential for future appreciation.
- Favorable Regulatory Environment: Fort Collins has a favorable regulatory environment, with minimal taxes and a streamlined regulatory procedure. This facilitates the acquisition and management of the real estate in the area by investors.
- Outdoor Recreation: Fort Collins is surrounded by stunning natural scenery, including the Rocky Mountains and Horsetooth Reservoir, ideal for outdoor recreation. This makes it a desirable destination for outdoor enthusiasts, which can increase demand for vacation rentals.
Thus, Fort Collins is an attractive location for real estate investors due to its combination of robust market fundamentals, diverse housing options, and lenient regulations.
