Various entities have been making predictions about where the real estate market in Northern Colorado will be heading in 2018. Here is my summary of what they are finding.
The general consensus and predictions for where prices are going in 2018 are:
- Fort Collins up 8% in average price from $422,000 in 2017 to $455,00 in 2018
- Loveland up 7% in average price from $412,000 in 2017 to $440,000 in 2018
- Greeley up 9% in average price from $346,000 in 2017 to $377,000 in 2018
Low inventories of affordably priced homes will continue to be a problem in many parts of the market during 2018. According to recently posted data, 70% of homes sold in Fort Collins and Loveland were under $400,000. Builders' continually increasing costs for materials, fees, and scarce labor make it very difficult for them to create residential homes at or below that price. These new homes are out of the reach of most buyers. So, as I mentioned in this blog regarding the dichotomy of the housing market in NoCo, there are some parts of the market in balance or even over-supplied with homes as buyers moves to higher price points.
Interest Rates are Probably Headed Up Too
Matthew Gardner, a national housing economist, predicts interest rates one year from now will be 4.4% (about 0.5% higher than today). He gave the example of "buyers thinking about waiting until the market cools off. For them there is a potential real cost to that wait. If prices and interest rates go up as predicted, a one-year wait would equal over $200 per month for a $400,000 home."
If you are thinking about buying a home soon, now is the time to get pre-qualified for a mortgage—before you even start looking at houses that are on the market. You won't be able to make an offer on a home if you cannot produce a letter from a lender pre-qualifying you for its purchase. I go into more detail in this post on the importance of seeking a lender first.
We can help you get into a home you are qualified to buy as quickly and efficiently as possible. Please contact us if you're ready to purchase your next home.