Northern Colorado Economic Snapshot - September '11

If you take a realistic look at the Northern Colorado (Ft. Collins, Greeley, Loveland & Windsor) real estate market, it’s a perfect storm for prospective homebuyers. Here are some reasons why.

Home mortgage interest rates are at historical lows. At this writing, a traditional thirty-year fixed rate mortgage is vacillating around 4% with no origination fee or discount points. Want to go lower? The 5/1 Adjustable Rate Mortgage (where the first five years are fixed) is at 2.875% with no origination fee or discount points; pay a 1% origination fee and that rate drops to 2.375%.

Home values have stabilized in most price ranges and geographic areas. As noted below, across the market the average year-to-date single family home sold value is up 2.04% compared to 2010. Total single family home sales through August/2011 for the market areas noted below is 3,165. This compares to 3,381 single family home sales through August/2010; a reduction of 6.39%. The market is trending-up over the course of the past ninety days when compared to the same time frame in 2010; expect single family home sales in 2011 to outpace single family home sales in 2010 for the Northern Colorado real estate market through the balance of 2011.

Despite the inventory level of available properties continuing to decline, which is characteristic of this time of year; stabilizing home values; and exceptionally low mortgage interest rates; sellers are still motivated to sell. Many sellers are willing to provide buyers with financing assistance; helping to cover closing costs. Price negotiation in the upper price ranges is more evident as there are fewer buyers in the market for those homes.

As the late summer/fall real estate market winds down, there are opportunities to be had in the market. If you are a buyer considering a move-up or move-down, this may be the perfect occasion to get proactive in the market. If you are a seller, pricing your home competitively is still a priority.

Below is a brief overview of average single family home values for the Northern Colorado area for the past two years. (Information is from IRES, the Northern Colorado MLS.) Click to enlarge.