Although the housing market in Northern Colorado has struggled since the expiration of the tax credits earlier this year, there is a bright spot in luxury home sales. Many home buyers are taking advantage of the low interest rates and reductions in list price on homes priced above $400,000. According to the Loveland Reporter Herald, “Listings in Fort Collins and Loveland in the market segment with a floor at $400,000 have risen sharply, and sales are more frequent.”
The northern Colorado MLS (IRES, LLC) shows a 13% increase in luxury home sales for Larimer and Weld Counties compared to 2009. The median sales price has increased, only slightly, by 2% from $490,000 to $498,000. There seems to be a growing trend (especially in Fort Collins and Loveland) of high end Sellers wanting to downsize combined with an increase in demand from buyers enticed by low rates and quality homes at a great value.
Jim Verg, a mortgage loan officer at Bank of Colorado in Fort Collins states “I think there is a lot going on in this market right now considering prices in these ranges couldn’t be better, inventory is great and rates are incredible. Never has there been a better time to go and buy a home in $400k + range. Look at the super jumbo homes $2mm+, it is amazing what kind of deals you can get on these homes today and with financing available for around 5% you couldn’t pick a better time to buy.”
When comparing high-end sales ($400,000 – 1 million) to total sales per area, IRES statistics show that Loveland has the highest percentage of luxury homes sold at 14%. Fort Collins came in at 11% and Greeley was substantially lower at 5%.
Another interesting fact which is motivating buyers to act on purchasing homes above $400,000 is currently in both Larimer and Weld Counties, there are 17 months of inventory from which buyers can choose a home – creating an extraordinary buyer’s market for luxury homes. Only a few months ago, I posted a blog on my website about trends in the Northern Colorado housing market. Specific to luxury homes I found ‘The luxury home market ($500k +) is in a category of it’s own. Homes in this price range have 30 months of inventory and they are selling at least 10% below list price. Buyer’s in this price bracket have been able to purchase homes at $200k below market – amazing. Seller’s, on the other hand, have a long road ahead.’
It looks as though the road for Sellers is turning out to be shorter than I predicted.
This is Lori Jarrett, “Keepin’ it real”
Resources: Information and Real Estate Services (IRES, LLC). This information is deemed reliable, but not guaranteed. Consult your lender for interest rate quotes and down payment requirements.