Here are some observations we have about the market right now:
- Inventory is up, price reductions are up, the length of time to sell a home is up
- Seller concessions are more prevalent
- Sellers are more willing to accept contingent offers (especially in higher price ranges)
- If a home doesn’t sell within a week, it often becomes stigmatized by the market and potential buyers assume there must be something wrong with it
- Homes that likely would have sold within hours a year ago, are now sitting on the market
- Condition is super-important as buyers become even more picky
- Pricing a property correctly on day one is paramount
- Sellers who over-price their property are finding themselves chasing the market
A statistic we keep our eye on is the percentage of homes which sell for at least list price.
In a robust, healthy, market with lower inventory, we will frequently see homes selling for their asking price or even higher.
Here are the number of sales that occur for list price or higher in each of our major markets:
• Fort Collins = 60%
• Loveland = 60%
• Greeley = 71%
• Windsor = 56%
There are a couple of things we notice about these numbers. First, well over half of all sales are for at least list price. This means that a buyer needs to be prepared to make a full price offer (or higher) in most cases. This also means that if a seller is priced right and marketed effectively, they should achieve their asking price.
We also notice that these percentages are lower than one year ago. In 2018 these numbers were 5% to 10% higher in each market. This is good news for buyers of course because the bidding wars are not as intense as last year.
A stat we find interesting is the relationship between the inventory for sale versus what is actually selling.
We are curious to know if the inventory that is for sale lines up with what the buyers want.
Here’s what we notice…
In Larimer County, 23% of all the single family homes for sale are priced under $400,000. No surprise, this is a popular price range among buyers and it represents 45% of all sales.
So, the ratio is 23% of the inventory versus 45% of the sales.
In Weld County, the difference is more pronounced.
Homes under $400,000 represent 44% of the inventory and 69% of the sales.
Because the percentage of sales is higher than the percentage of inventory, properties under $400,000 will sell much quicker and are more likely to have multiple offers.
To see the latest on the market, be sure to check out a copy of the new Gardner Report, our Chief Economist’s quarterly look at Front Range real estate.
So, which is it? A buyer’s market or a seller’s market?
Well, it depends!
First, let’s define each market. According to research, a buyer’s market exists when there is more than 4-6 months of inventory on the market.
If it would take longer than 4-6 months to sell out all of the inventory currently for sale, then it is a buyer’s market.
This calculation is obviously a function of the amount of inventory on the market and the current pace of sales.
A seller’s market exists if it would take shorter than 4-6 months.
So, which is it?
It depends very much on the price range.
Here are the numbers for Northern Colorado:
• $300,000 to $400,000 = 0.9 months
• $400,000 to $500,000 = 1.9 months
• $500,000 to $750,000 = 2.3 months
• $750,000 and over = 5.8 months
So, most price ranges are a clear seller’s market. It’s not until $750,000 and over that the market starts to approach a more balanced state.
Here’s one more thing that might help you…
You probably don’t need a reminder that this is tax season.
Not only because tax returns are due in two weeks but also because you will soon receive your property tax notification in the mail.
Every two years your County re-assesses the value of your property and then sends that new value to you.
When this happens, many of our clients:
- Don’t agree with the new assessed value
- Aren’t sure what to do
- Are confused by the process
- Want to save money on property taxes
Good news! We have a webinar that will help you. On the webinar we will show you:
- How to read the information from the County
- What it means for you
- How to protest the valuation if you want
- How to get an accurate estimate of your property’s value
You can listen to the webinar live or get the recording. In any case, you can sign up at www.WindermereWorkshop.com
The webinar is April 17th at 10:00. If you can’t join live, go ahead and register so you can automatically receive the recording.
This is a complimentary online workshop for all of our clients. We hope you can join!
While the “Bomb Cyclone” closed roads and schools over the last two days, the “Condo Cyclone” is opening new opportunities for first-time buyers.
What’s the “Condo Cyclone” you ask. It’s the proliferation of multi-family inventory that has come on the market up and down the Front Range.
Compared to last year, multi-family inventory which includes town-homes and condominiums, has increased…
• 79% in Metro Denver
• 34% in Larimer County
• 45% in Weld County
This is terrific news for the market overall, as inventory has been unusually low for several months. It’s especially terrific news for first-time buyers who need this type of product as a stepping stone to home ownership.
What we notice is a $170,000 to $130,000 difference in average price between a single-family home and a multi-family home in Front Range markets.
Specifically, here’s the spread between multi-family and single-family average price:
• $349,801 vs. $512,312 in Metro Denver
• $312,493 vs. $469,294 in Larimer County
• $237,645 vs. $370,027 in Weld County
So as we dig out from the “Bomb Cyclone” we can be happy for the “Condo Cyclone” which brings more affordability and opportunity to our markets!
Just Released (a new resource site just for you…)
• Want to see the latest market trends?
• Curious to see the process of buying or selling a home?
• Interested in what it takes to own investment property?
• Be sure to visit www.ColoradoLivingBlog.com
Metro Denver has 2.1 months of inventory on the market. This means that, at the current pace of sales, it would take just over 2 months to sell every single-family home currently listed for sale.
But that’s not the whole story because inventory levels vary drastically depending upon the price of the home.
When we take a closer look at months of inventory broken down by price range this is what we see:
• Under $400,000 = 0.9 months
• $400,000 to $500,000 = 1.8 months
• $500,000 to $750,000 = 3.1 months
• $750,000 to $1,000,000 = 4.2 months
• Over $1,000,000 = 7.7 months
These numbers represent great news for move-up buyers because they can sell in a strong market and potentially move up to a market that is market that is not as strong.
Below is a short video with a recap of our annual Market Forecast presentation!