Fall Update 9-25-2020
Greetings friends! Quick update on the market, and a few other tidbits.
When I try to gather data for these updates, I’ll read pieces published by REALTOR® Magazine as well as the ‘official’ National Association of REALTORS® newsletters. Then I completely disregard them as the news is typically “market is totally rad, no trouble at all”.
Well the truth is, the market is actually quite normal at the moment. Except for the fact that it isn't, at all. But based purely on numbers you wouldn’t think we’re in the midst of a pandemic and less than six weeks away from what will arguably be the most interesting election most of us will be subjected to in our lifetimes. But nothing should surprise you in 2020, so let’s take a guess as to where we’re headed with some stats.
As I predicted back on my 3/30/2020 post, there was no post-4th of July lull like we see in a normal year of typical seasonal trends. Instead, the housing market reacted to the pause-button quarantine period by continuing where it left off and cruising straight through to the beginning of the new school year. From the period of July 21st to August 21st, there were nearly 22% more single family homes sold in Fort Collins in 2020 vs 2019 (288 vs 225), and in Loveland during that same period an amazing 37% more homes sold (215 vs. 135). Also of note, the average price of a SFR in Fort Collins in that period last year was $475,152; this year it was $522,531, or 9% year over year.
While that doesn’t match the record-high double-digit growth we’ve seen in recent years, this happened during a period of history where Lysol wipes garner black market prices and yours truly can’t go to a movie. Well I could, I just wouldn’t have a home to come back to.
If you want doom and gloom you’ll certainly find it in the commercial sector. No need to bombard you with stats on that - there are more commercial vacancies than we’ve ever seen, and if you want to buy a commercial building now is the time to do so. Just plan on unpadding the numbers in the listing agent’s pro forma and having it sit vacant for a while.
The silver lining is the impact the amount of vacancies *should* have on lease rates, even in Old Town Fort Collins. Plenty of landlords are still holding firm on their gold-plated rates, but one can assume they can’t do it forever. And while I can’t back this up with any stats, my sense is most owners are willing to sell rather than drop their $/sq ft.
Finally, mortgage rates are still quite incredible, with some o/o rates in the high 2s. If my friends and clients aren’t considering upgrading their homes they’re certainly mulling a refinance. I have a rather robust list of great lenders if you don’t have a favorite or would just like to call around for potential options.
I hope everyone is safe and sane and look forward to helping you or your friends with any real estate needs. Cheers - Crip
Crip Erickson, Owner/Managing Broker