With the New Year just around the corner, I will attempt to speculate about the upcoming twelve months for Fort Collins real estate market by evaluating the current year and its trends.
Wow! – 2013 just passed by in a flash! Who would’ve thought this year would bring so much movement in the real estate market? With New Year just around the corner, all eyes are on the rising real estate market situation. Northern Colorado has continuously enjoyed a steady increase in overall sales price of both commercial and residential property with Fort Collins remaining as one of the most sought-after areas for buyers from all across the country.
Let’s round up on some of the statistics for Northern Colorado Fort Collins region, and see what the past twelve months have brought about for real estate:
- According to the Associated Press, the average rate on a 30-year fixed mortgage is 4.57%.
- Since late spring, interest rates have increased as much as 1% compared to levels earlier in 2013.
- In Fort Collins, the average days of any house to remain available in the market dropped by 20% – from 105 to 84
- More buyers are aggressively seeking homes that results in higher home prices.
- According to the Fort Collins Board of Realtors October 2013 report, the median sales price for single family homes has increased by 4.1% and currently resides at $255,000.
Predictions for the coming year…
Real estate pundits are predicting many things for the coming year. Read on to find out what is in store for Fort Collins real estate market for the year 2014:
- The demand for homes will continue to rise in Fort Collins. As a result, there will be lack of available building lots and houses which will further increase the home prices.
- Real estate experts forecast the residential building market to become expensive with the “drive till you qualify” mentality that will favor sellers more than the buyers.
- Median home sale prices are expected to rise to $308,000 with the size of houses to decrease and overall increase in price per foot.
- The prices will continue to increase as currently only 7% of new homes in the market that are being sold for less than $199,000. The trend will prevail in 2014 with increased long-term interest rates, water rates and cost of materials.
- Decreasing purchasing power can possibly bring the market to a slower pace. Buyers will eventually be unable to keep up with the price hike that will be further aggravated with sluggish job and income growth, government shutdown and developers’ access to credit.
- In 2014, it is estimated to cost about $75,000 to develop one home lot. With lot costs accounting for about 20% of home costs, it makes it unlikely that new homes will cost any less $300,000.
- Most of all, Fort Collins is expected to saturate with a decreasing supply of lots in the area. This will cause buyers to gravitate east to Johnstown, Windsor and Greeley. So sellers from these areas should watch out as the house prices will eventually increase and benefit them.
Although the holiday season usually causes a damper in home sales, however, this should not be the reason to stop you from exploring the available options in the market. In fact, if you are serious about purchasing a house, then don’t wait for the next year and make a move now. With our predictions lined up to come true by the coming year, you probably want to find viable house deals that are kind on your pocket. The real estate market is sizzling with houses selling fast which makes it all the more reason to act in a timely manner than regret sitting out for too long.
As real estate market strives to regain its lost glory, Alfie E. Ethan looks ahead to predict what’s in store for the year 2014. A Research Analyst by profession, the author provides testimonials and statistics laid out by various real estate experts regarding what lies ahead for homes for sale in Fort Collins Colorado. This article is a collection of various trends and predictions for the Fort Collins real estate market in the coming year.