Northern Colorado Real Estate Heats Up
It’s well known that Colorado has become a hot spot over the last couple of years, creating a rise in the real estate market. While price hikes in Denver may be slowing down, Northern Colorado is heating up.
Last month, local real estate experts put out statistics and made predictions for 2016. Though numbers slightly differed, the one thing that was agreed upon was that Northern Colorado’s market would continue to rise.
The surge in people trying to get into houses in Fort Collins and Loveland is creating a limited supply, which is good news for sellers as the limited supply drives up prices.
New home sales prices are also increasing due to the cost of land, labor permits, and water fees. 74 percent of home sales in the region are for homes below $400,000, with only 49 percent of new homes falling within that price range.
According to statistics from the Everitt Real Estate Center at Colorado State University, last year there were 650 new homes built in Loveland and Berthoud, and another 617 in Fort Collins and Timnath.
According to Windermere Real Estate’s Eric Thompson, the 791-home development of Lakes at Centerra is the top neighborhood to watch in Northern Colorado, predicting the town of Berthoud to take off in the next two to three years.
Where in many markets the average home sells for around 94 percent of the asking price, Northern Colorado saw homes going for 100 percent, if not above asking price last spring and summer. These trends are already being seen again this year.
Though Northern Colorado has seen higher than average price increases over the last 3 years, higher interest rates may begin to slow down the acceleration of home prices in the area.