Fort Collins, Colorado is a picturesque city located at the foothills of the Rocky Mountains. Known for its scenic beauty, vibrant downtown, and top-rated schools, Fort Collins has become a popular destination for homebuyers. In this post, we'll take a look at the Fort Collins housing market, including prices, trends, and forecasts for 2023. Whether you're a prospective homebuyer or just interested in the state of the local real estate market, this article will provide valuable insights into the current state of Fort Collins real estate.
According to NeighborhoodScout, Fort Collins real estate has appreciated by 130.12 percent over the last decade, which equates to an annual appreciation rate of 8.69 percent on average, placing Fort Collins in the top 20% of all cities in terms of real estate appreciation. Fort Collins' appreciation rate over the last twelve months has been 14.74 percent. In the most recent quarter reached by them (2022 Q2 – 2022 Q3), house appreciation rates in Fort Collins were 5.17 percent. In comparison to the rest of Colorado, their data indicates that Fort Collins' latest annual appreciation rate is lower than 50% of the state's other cities and towns in CO.
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Fort Collins Housing Market Trends
The Fort Collins housing market trends for February 2023 show some interesting shifts. According to the report by the Fort Collins Board of Realtors, new listings for single-family homes were down by 11.2%, while townhouse-condo properties saw an increase of 14.3%. Meanwhile, pending sales for both types of properties were down, with 144 for single-family homes and 51 for townhouse-condo properties.
The median sales price for single-family homes was down by 5.8% to $590,000, while townhouse-condo properties saw an increase of 14.3% to $417,153. Days on market increased significantly for both types of properties, with a 50% increase for single-family homes and a staggering 204.9% increase for townhouse-condo properties.
These trends mean different things for buyers and sellers in the Fort Collins housing market. For buyers, the increased number of townhouse-condo properties on the market and the slower price growth can be seen as a positive development. However, the increased days on market suggest that buyers may have more time to make decisions and negotiate prices. For sellers, the slower price growth and increased days on market may mean that they need to be more competitive in their pricing and marketing strategies to attract buyers.
Overall, the Fort Collins housing market trends for February 2023 reflect the wider national trends of slowing price growth and decreased buyer demand. However, with the spring season approaching and the possibility of lower mortgage rates, there may be more opportunities for both buyers and sellers in the coming months.
Fort Collins Housing Market Forecast 2023
Realtor.com and Zillow are two of the leading online real estate marketplaces that provide valuable insights into the Fort Collins housing market. Realtor.com's data shows that the median listing home price in Fort Collins, CO was $575K in February 2023, with a year-over-year increase of 12.7%. The median home sold price was $553.5K, and homes were selling for approximately the asking price on average.
The market in Fort Collins is currently a seller's market, meaning there are more people looking to buy than there are homes available. The median days on market are 52, which is down from the previous month but slightly up from the previous year. The most expensive neighborhood is Old Town West, with a median listing home price of $930K, while the most affordable neighborhood is Prospect-Shields, with a median listing home price of $295K.
On the other hand, Zillow's data indicates that the average Fort Collins home value is $540,015, up 1.2% over the past year as of February 28, 2023. The Zillow Home Value Index (ZHVI) shows that the typical home values in Fort Collins have been steadily increasing over the years. In 2015, the median home value was $268K, and by 2023, it had risen to $540,015.
The data also suggest that most homes are selling very close to their list price, with a median sale-to-list ratio of 0.994. Additionally, 24.2% of homes sold in Fort Collins were sold above their list price, while 52.8% of homes sold below their list price. The median days to pending are 25, indicating that homes are selling relatively quickly.
Based on the data provided, the MSA level forecast for Fort Collins, CO is negative. The forecast predicts a 0% change in housing prices from the base date of 28-02-2023 to 31-03-2023, followed by a decline of 0.4% from 31-03-2023 to 31-05-2023, and a further decline of 1.5% from 31-05-2023 to 29-02-2024. This suggests that the housing market in Fort Collins, CO may experience a slowdown or a correction in the near future.
Fort Collins is home to several neighborhoods, each with its own unique character and charm. Some of the most popular neighborhoods in Fort Collins include Old Town, the historic downtown area with restored Victorian-era buildings; Prospect, a modern mixed-use development with trendy shops and restaurants; and Fossil Lake Ranch, an upscale community with large homes and plenty of green space. The median Zillow Home Value Index (ZHVI) for each neighborhood varies, so it's essential to research individual neighborhoods when considering purchasing a home in Fort Collins.
Based on the data from both realtor.com and Zillow, the Fort Collins housing market is showing signs of strength and growth, with prices continuing to rise. However, there are indications that the market may be cooling down slightly, with a decline in the number of new listings for single-family homes in February 2023. This trend could indicate a possible shift towards a more balanced market in the future.
As for the forecast, the Fort Collins housing market is expected to remain strong in 2023, with prices continuing to rise, although at a slower pace than in previous years. The market will likely remain a seller's market, with low inventory and high demand from buyers. However, with the potential for rising interest rates and affordability challenges, buyers may become more cautious, leading to a possible slowdown in sales activity. Overall, the Fort Collins housing market is likely to remain competitive and dynamic, with both opportunities and challenges for both buyers and sellers.
Fort Collins Real Estate Investment Overview
Northern Colorado city Fort Collins is regarded as one of the most desirable places to reside in Colorado. Fort Collins, with a population of over 170,000, has a thriving economy, exceptional schools, and a thriving culture. Colorado State University is located in the city, which contributes to its vibrant and educated population. All of these factors have made Fort Collins an attractive real estate investment location.
The city's robust rental market is one of the primary reasons why Fort Collins is an excellent real estate investment opportunity. Consistently robust, due to the high demand for housing from students, families, and young professionals. In addition, the city's stringent zoning regulations restrict the number of rental properties, resulting in a limited supply of rental units. This circumstance leads to high rental costs and low vacancy rates.
Fort Collins's housing market has also experienced consistent growth over the years, making it an ideal location for real estate investors. According to Zillow, the median home value in Fort Collins is $540,015; this value is expected to rise in the future. Realtor.com also reports that the median listing price for a residence in Fort Collins was $575K in February 2023, an increase of 12.7% annually.
Fort Collins's real estate market is diverse and offers a variety of investment opportunities. Investors have the option of purchasing single-family residences, condominiums, townhomes, and even commercial properties. In addition, the city's robust economy has led to a growing demand for commercial real estate, providing investors with an excellent investment opportunity.
Additionally, investors in Fort Collins benefit from the city's tax policies, making it a low-cost investment option. Colorado has no estate or inheritance tax, and its property tax rates are among the lowest in the nation.
Overall, Fort Collins presents a unique opportunity for real estate investors. With a robust rental market, a thriving economy, and a diverse real estate market, investors can find opportunities that align with their specific objectives.
Top Reasons to Invest in Fort Collins Real Estate
There are several compelling reasons why investing in Fort Collins real estate can be a smart decision. Here are some of the top reasons to consider:
- Strong Market Fundamentals: Fort Collins has a thriving economy, a stable employment market, and a consistently high standard of living. These factors make the area appealing to both renters and homebuyers, thereby assuring a steady demand for real estate.
- Diverse Housing Options: Fort Collins provides a variety of housing options, ranging from affordable apartments to luxury residences, making it an attractive market for investors with varying budgets.
- Proximity to Denver: Fort Collins is a little more than an hour's journey from Denver, one of the fastest-growing cities in the United States. This makes Fort Collins an attractive option for people who work in Denver but prefer a smaller, tranquil community.
- Strong Rental Market: Fort Collins has a robust rental market due to its large student population, as well as its growing number of young professionals and families. This affords investors opportunities to generate consistent rental income.
- Appreciation Potential: Fort Collins real estate has historically appreciated at a consistent rate, and with the city's expanding population and robust economy, there is the potential for future appreciation.
- Favorable Regulatory Environment: Fort Collins has a favorable regulatory environment, with minimal taxes and a streamlined regulatory procedure. This facilitates the acquisition and management of the real estate in the area by investors.
- Outdoor Recreation: Fort Collins is surrounded by stunning natural scenery, including the Rocky Mountains and Horsetooth Reservoir, ideal for outdoor recreation. This makes it a desirable destination for outdoor enthusiasts, which can increase demand for vacation rentals.
Thus, Fort Collins is an attractive location for real estate investors due to its combination of robust market fundamentals, diverse housing options, and lenient regulations.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Fort Collins, CO is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
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Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Sources:
- https://fcbr.org/monthly-housing-statistics/
- https://www.zillow.com/fort-collins-co/home-values/
- https://www.redfin.com/city/7006/CO/Fort-Collins/housing-market
- https://www.neighborhoodscout.com/co/fort-collins/real-estate
- https://www.realtor.com/realestateandhomes-search/Fort-Collins_CO/overview
- https://www.zumper.com/rent-research/fort-collins-co
