Although Northern Colorado has received good news recently with potential job growth from NASA, the reality of our housing market is that people are still struggling to stay in their homes or find available/affordable homes to rent or buy. Natural and economic disasters are also causing people to relocate to Northern Colorado at an extraordinary pace as opportunities present themselves for employment, retirement, or a new start. This migration creates a demand for housing that is affordable because new beginnings and getting established takes time. This reality opens the door for buyers, sellers, investors and renters as long as they have the information they need to make an informed decision.
The best way to determine whether a certain price range of homes is in a buyer's or seller's market is to look at the months of inventory. For example, homes priced under $85,000 in both Larimer and Weld Counties currently have only 2 months of inventory. Even homes valued up to $210,000 have only 4 months of inventory. Anything below 6 months of inventory would be considered a Seller's market. High demand equals quick sale and there are certainly enough consumers, renters and investors looking for affordable housing. So, sellers or investors with fix and flip properties who are considering listing a home valued between $85,000 - $210,000 would be wise to do so quickly to capitalize on the demand. Thirty four (34%) percent of homes sold in the previous year were priced between $135,000 - $210,000.
On the other side of the spectrum is the luxury home market. Homes priced above $460,000 have 21 months of inventory in Weld County and 17 months in Larimer County. These numbers may seem high and obviously create a buyer's market. What is very telling, however, is that those numbers have dropped significantly since September of 2010 (from 33 in Weld and 27 in Larimer). The percentage of luxury homes sold in Larimer County since September 2010 has increased from 21% to 26%. Cash buyers are relocating to Northern Colorado and taking advantage of significant price reductions by purchasing luxury homes with deals never seen before. Luxury home buyers can also find foreclosure property in beautiful condition with values close to $200,000 below market.
Whether buying or selling real estate, it is imperative to research the market to gain a better understanding of local trends and potential risks in the future. For more information on the Northern Colorado real estate market, follow this link
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(Statistical information compiled by Lori Jarrett, Broker/Owner of Take Me Home Real Estate, LLC from IRES, LLC. Information deemed reliable, but not guaranteed)
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