Median home prices still continue to rise in some parts of northern Colorado with the exception of Greeley/Evans, Longmont and Estes Park. Boulder has an unbelievable median price of $992,00 while Fort Collins at $372,000 and Loveland/Berthoud at $350,000 look reasonable in comparison but are still really high for our area. Longmont dipped to $345,000 from a high of $370,00 in March, Greeley and Estes Park adjusted down as well.
That just means that the homes we used to sell for $225,000 just a few years, maybe 2-3, can now get close to $300,000. Lots of reasons why—people are moving here at an increased rate due to the attractiveness of the area, low unemployment, higher-wage jobs, the pot trade, and east and west coast buyers are selling their homes at incredible prices and finding our prices actually cheap.
Lenders are also saying that one of the outcomes of Brexit (UK’s exit from the European Union), was cheaper interest rates for a longer time.
Some buyers are waiting to buy, adhering to the principles of magical thinking, that the market will suddenly re-adjust and come back down to pre-crazy prices. They may settle out a bit but there is no reason to think that people are going to stop coming here or that northern Colorado will suddenly experience an economic downturn and lenders will be foreclosing on homes. For years, the Fort Collins and Loveland areas have garnered “Best of” Awards. What did you think would happen?
Just because you don’t have 20% down doesn’t mean you can’t buy a house. Yes, it makes it more difficult to compete in this market but not impossible. And if you still think you want to wait until next spring, at least talk to a lender and see where you stand and if you can improve your chances somehow—either repair any credit issues, see how much you really need to save to avoid Mortgage Insurance payments, or just get a solid answer to how much you can really afford.
The more realistic and prepared you are; the sooner you’ll join the ranks of happy homeowners in northern Colorado.
The graphic in this article is from a Trulia piece on the housing inventory decrease. The two lowest price brackets in the housing market is down by about 40% in the last 4 years.