Fort Collins Real Estate Market Update

buyers-sellers_street_sign_575

The Fort Collins Real Estate market has definitely been an interesting ride for the last 12-18 months! With properties selling so quickly we have had to be not just ready to show homes and write offers at a minutes notice, but get creative on how I obtain properties to show and sell to my clients.

There is good news though for both buyers and sellers going into the summer. For sellers, homes are still selling quickly and pretty much right at list price (we’re at 98.5 % of list price in Fort Collins so far in 2014). We are still maintaining the appreciation that we’ve seen over the last couple of years, so that is great news for the equity in your home if you are a seller.

On the buying side, there is some good news there as well! Interest rates have stayed low (while not 3% like they were last year, 4.5% is still historically VERY low) which has kept buyer’s purchasing power higher than it was a few years ago. We also have stabilized pricing because if you look at the average sales price percentage increase for 2014 we are at 2.4%. The only issue is that we are creeping up on $300,000 as an average sales price for Fort Collins, we are currently at $292,893. But, with homes sitting on the market a little bit longer, the frenzy should hopefully start to slow at least a little bit. We are at 3.12 months of inventory on the market, where we had been at under 3 months since October of last year. To put that in percentages, homes are sitting on the market 7.1% longer than they were at this same time last year.

There are opportunities for both buyers and sellers right now, so if you or anyone you know are looking to make a move, please give me a call so we can sit down and chat about what might be best for you. Have a great week!

Fix and Flips? A Great Idea, Just Do Them Right

Cash Money!

Cash Money!

So you watched hours of HGTV, and now you want to do a fix and flip. Well, while it might look easy on TV and they always get everything just under the wire, there are some realities of this market that you should be aware of before jumping in to a project.

Fort Collins right now is a strong and healthy market. That’s great for home buyers and sellers, but a little less fantastic for those trying to pick up a deal. If a house is priced even remotely well, then it sells quickly at or above list price with multiple offers. We are still looking at low inventory, even lower than last year. Year over year we are down 8.9% in new listings, as well as down 4% for days on market. This means if a deal pops up on the MLS, it isn’t a deal by the time it is under contract with the highest bidder.

But the news isn’t all bad. If you have a handle on what your remodel and construction costs are going into a project (call me and I can tell you who I recommend for things like this), and know exactly what percentage return you are targeting, then you can make decisions quickly when a remodel opportunity presents itself. The key is to find something before it hits the MLS (I’ve helped buyers find properties by targeting neighborhoods where we have seen good appreciation and the appreciation going forward looks healthy), or even something that comes available on the MLS that is in such bad condition not many buyers could take it on.

These types of deals are few and far between, but if you are interested in learning about the opportunities, please give me a call!