Many people choose Fort Collins, Colorado, to move to or purchase a real estate investment property. This city has many appeals, such as high-ranking schools and universities, endless recreational activities, and a charming community.
Also, Fort Collins has a strong job market, which means many people can find multiple career opportunities there.
However, the housing market in Fort Collins has experienced major changes.
Does it mean homebuyers shouldn't consider buying a property in this city? How has the Fort Collins housing market performed in recent months? Read on to find all the information you are looking for!
Fort Collins Housing Market Trends
Redfin's latest reports on the Fort Collins real estate market show that housing prices have risen, which often means the demand has increased.
However, the number of homes sold dropped in April of this year, and properties spent more time on the market before selling.
Here's more information on each housing market trend.
Median Home Prices
According to Realtor.com, the median listing home price in Fort Collins, CO, was $590,000 as of April 2023. During the same period, the median home sold price was slightly lower – $589,900.
However, Redfin's estimates show that the city's median sales price could be lower. Its latest reports say it was $560,000 in April 2023, which accounts for a rise of 1.4% year over year.
Demand and Homes Sold
As prices rise in Fort Collins, the number of homes sold goes down. According to Redfin, 174 housing units were listed and purchased in April 2023, down from 253 in 2022.
In addition, around 42.4% of the housing units sold in April were purchased above the list price. Contrastingly, 17.8% of homes had price drops.
Realtor.com's latest reports also showed that there were only 716 homes for sale in Fort Collins. The city has 110 neighborhoods, which means the housing inventory is low.
Median Days on the Market
Redfin also showed that the median days on the market rose by 11 days year over year in April 2023.
On average, residential properties spent 31 days on the market before going under contract.
What Factors Affect the Fort Collins Housing Market?
Did you know that inflation isn't the only thing that impacts the real estate market? Essentially, different factors affect housing demand and prices, including the following:
The City's Health of Economy
In cities with robust economies, the real estate market remains strong, as people feel confident about their finances and are willing to buy homes.
Fort Collins has a diverse and resilient economy, offering many job opportunities for residents. The city's unemployment rate was 2.4% in March 2023, as reported by the US Bureau of Labor Statistics.
Changes in Demographics
If the population changes, so do the housing market trends. Cities that welcome migrants, young people, and workers seeking relocation often have a higher demand for homes.
Government policies, including tax subsidies and credits, have a major influence on housing demand, inventory, and prices. Actually, authorities use them to control the real estate market.
Mortgage Interest Rates
The higher the mortgage interest rates, the less affordable the houses are. Across the US, they have reached record highs, exceeding 6% for 30-year and 15-year fixed-rate loans. As a result, the demand for homes has remained low,
Is the Fort Collins Housing Market Likely to Crash Soon?
Rising inflation and rumors of a potential recession have also affected the Fort Collins real estate market. Therefore, many potential buyers wonder if buying a home in this city represents a good investment.
However, experts insist that Fort Collins will only experience a slowdown, explaining that the following signs show the housing market isn't likely to crash in the near future:
- Analysts expect housing demand to remain high because many are still interested in buying houses.
- As a result, the housing supply is expected to remain low, experts say.
- Many also believe that mortgage interest rates will increase to 7% or more, which means that home prices are likely to continue declining this year.
- Foreclosure filings are down across Colorado, which is the 29th state for the highest foreclosure rate by SoFi. Experts say this happens because people have more equity in their homes and better personal finances.
- Lenders are now stricter when granting loans since they pay more attention to certain aspects, such as the borrower's credit score.
Fort Collins Housing Market Statistics
Besides the recent trends seen in the housing market, potential homebuyers should also consider the following statistics to make a smart real estate purchase.
- Redfin showed that average housing units in Fort Collins, specifically those that sell for approximately the asking price, go pending in about 33 days.
- However, Redfin's reports also revealed that hot homes can sell for up to 2% more than the listing price. In these cases, properties go pending in 19 days.
- Redfin's reports on migration and relocation trends also showed that 0.19% of national homebuyers planned to move to Fort Collins.
- Meanwhile, 35% of people who own property in Fort Collins expect to stay within the metropolitan area.
- According to Redfin's reports, 65% of homebuyers expected to move out of Fort Collins between February and April of this year.
- Realtor.com showed that the median listing home price in Fort Collins was $269 per square foot.
- Home prices around the 110 neighborhoods that make up Fort Collins range from $55,000 to $12.6 million.
- The sale-to-list price ratio was 100% according to Realtor.com and 100.65% according to Redfin.
- New listings fell by 36% in January 2023 while pending sales dropped by 32% across Northern Colorado.
Fort Collins Real Estate Market Predictions
Are you still unsure if buying property in Fort Collins is a good day? Here's the experts' housing market forecast:
- Zillow's reports show that the median price for average homes has risen steadily over the years. Therefore, the market is expected to continue growing even though slightly negative trends were reported throughout the year.
- However, many experts predict that the Fort Collins real estate market trends will be negative.
- Analysts suggest that home prices could remain unchanged until mid-2023. Many predict a 0.4% drop after this year's second quarter.
- However, the median Zillow Home Value Index (ZHVI) is not the same for all neighborhoods, so predictions could vary across Fort Collins.
The Final Verdict
Fort Collins offers many benefits and real estate investing opportunities. However, like all cities, it has experienced negative housing market trends.
Fortunately, even if many predictions are negative this year, figures show that the housing market could be more competitive in late 2023 and early 2024.
Frequently Asked Questions
Is Fort Collins, CO, a Seller's Market?
Yes, it is! In many cities in Colorado (CO), Fort Collins included, the demand for housing units is high. In other words, many people hope to buy a property there. As a result, sellers can set higher prices and have more bargaining power.
Therefore, Fort Collins, CO, is considered a seller's market in April 2023.
Is It a Good Idea to Buy a Property in Fort Collins, CO?
Answering that question depends on different factors. Ideally, homebuyers and real estate investors should take a closer look at the latest housing market trend and consider experts' predictions to see if buying a home in this city is a good idea.
However, it's also important to consider their preferences and budgets. Sometimes, contacting an experienced real estate agent can also help potential buyers make better decisions.