Highlighting that inventory has been very low for a very long time is the fact that the number of homes available in Northern Colorado today most closely resembles 2015.
It has been almost 10 years since buyers have had the selection that they have now.
Even though inventory is up over last year, and way up since 2021, it is still only half of the long-term average.
So, buyers can enjoy increased selection and sellers can enjoy limited competition.
We are halfway through May. This is how the numbers stack up versus the exact time last year.
Larimer County:
Weld County:
As the saying goes, Superman is more powerful than a steaming locomotive (and able to leap tall buildings in a single bound)!
In real estate, supply and demand is more powerful than interest rates (and able to push price appreciation year after year)!
The fact that prices keep rising in Northern Colorado, even though interest rates are over 7%, is because of one factor- supply and demand.
Supply and demand is most easily measured by months of inventory which considers how long it would take to sell the current inventory at the current pace of sales.
Larimer County has just over two months of supply. Weld County has just under two months.
Fundamentally, while months of inventory stays below four months, prices are pretty much guaranteed to keep going up.
The average price in Larimer County is well over $700,000.
For all closings in April, the numbers came in at $721,000.
People who have lived in Northern Colorado may have a hard time believing that.
The market here has certainly seen significant growth in the last 20 years.
Here is something remarkable about the April numbers.
Of the 300 closings last month in Larimer County, 48 were priced over $1 million and only 16 were under $400,000.
Did you know home values in Larimer County have more than doubled in the last ten years?
Larimer County average prices are up 125% compared to 2014. Weld County’s are up 134%
Here’s where it gets interesting…
Many people would guess that a significant portion of those gains occurred in the last five years.
However, in Larimer County the last five years of price growth was only slightly higher than the previous five years.
Weld County actually saw more price growth, on a percentage basis, from 2014 to 2019 as compared to 2019 to today.
April real estate is off to a strong start in Northern Colorado.
Larimer County sales are up 20% compared to last April. Pending sales are 7% higher.
Weld County sales are up 16% and pendings are up 30%.
This is despite the fact that rates are slightly higher than one year ago.
It looks like a strong spring is in store for NoCo.
Here are some interesting facts from Attom Data’s report on House Flipping.
Because mortgage rates have not decreased yet this year, many are wondering what that means for Northern Colorado home sales.
Transaction count is staying relatively steady compared to 2023.
Total sales year to date are down slightly (6%) versus last year.
At this point in 2023, there were a total of 1434 closings in Northern Colorado. This year there have been 1350 – 84 fewer.
Here’s a fun fact about the current inventory along the Front Range.
The number of properties for sale is five times as many versus the all-time low in 2022.
And, it is one-fifth as many compared to the all-time high in 2006.
Also, it is half of the long-term average.
So, selection is much higher than the frenzied 2021/2022 market.
However, inventory is still very low relatively speaking.
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