Our somewhat unpredictable real estate market of the past year is finally starting to see more predictability. October 2023 in Northern Colorado brought a departure from the pandemic-induced frenzy that characterized recent years. Sellers, who once reveled in the luxury of multiple offers soaring prices above asking now find themselves in a more balanced market.
The days of intense competition for many NOCO homes appear to be waning, prompting sellers to adopt new strategies for success. To stay competitive, sellers in the region are advised to consider offering concessions and obtaining pre-inspection reports, while addressing any necessary fixes before listing their homes. It’s a strategic move in a market that requires a more nuanced approach.
Sarah Tyler, Managing Broker at Kentwood Real Estate Northern Properties, commented “The real estate market in Northern Colorado is showing signs of recalibration. It’s a time for sellers to be strategic in their approach to selling.”
In Fort Collins, the rhythm of home sales saw the typical seasonal slow down in October, with 109 detached homes sold. Attached homes, maintained a steady pace with a 4.4 percent increase from the previous year. The average sale price for detached homes in Fort Collins now stands at $646,562, reflecting a 6.81 percent decrease from 2022. Sellers are also witnessing an increase in the average days on the market, reaching 51—an indicator of buyers displaying newfound patience in this evolving market.
Loveland, too, echoes the trend, with a decline in detached home sales from 92 to 75. The average sales price saw a 3.80 percent decrease to $562,653, while the average percent of the original list price for detached homes remained relatively neutral compared to the previous year. The housing market in Loveland appears to be aligning with the broader seasonal shift.
Nestled near the Front Range of the Rocky Mountains, Windsor joined the chorus of Northern Colorado cities experiencing an October softening. The average days on the market for detached homes increased by 25 percent, signaling the influence of the holiday season. The average detached home price dipped slightly to $685,475, marking a year-over-year decrease of 6.53 percent. Despite a modest increase of 6.12 percent in closed sales for detached homes, Windsor reflects the general trend of a market in rebalance.
Boulder, however, came across as an outlier last month, bucking the regional trend with a 12.44 percent increase in closed detached sales. A total of 235 homes were sold in October, compared to 209 the previous year. The average closed sales volume for detached homes soared by an impressive 23.47 percent, underlining the enduring desirability of Boulder in the real estate landscape.
Amidst these shifts, the broader housing market is also influenced by external factors, such as mortgage rates. A recent drop in mortgage rates, attributed to a bond market rally following a lower-than-expected monthly inflation report, has sparked a spike in mortgage demand. Nationwide applications to refinance a home loan increased by 2 percent in one week in early November, indicating a positive turn for recent homebuyers seeking to refinance in today’s high-rate climate. As Northern Colorado navigates the evolving real estate landscape, adaptability and strategic decision-making will be key for both buyers and sellers. Opportunities abound for those who can read the rhythms of change.
*Updated November 16, 2023