13 Dec Market continues to move forward and UPWARD

Long read but worth it…

If you are a home buyer or real estate investor, Fort Collins has unquestionably established itself as one of the best long-term real estate investments in the country over the last decade. With a population of 170,243 and a median house value of $550,000, Fort Collins’ housing prices are among the highest in the country, though they pale in comparison to the most expensive Colorado communities. The current metro area population of Fort Collins in 2021 is 343,000, a 1.78% increase from 2020. Fort Collins housing market trends indicate an increase of $80,000 (+ 17%) in the median home price and a – 30.3%% drop in home sales over the past year.

According to NeighborhoodScout, Fort Collins real estate has appreciated by 93.87 percent over the last decade, which equates to an annual appreciation rate of 6.84 percent on average, placing Fort Collins in the top 10% of all cities in terms of real estate appreciation. However, Fort Collins’ appreciation rates have lagged behind the rest of the country over the last year. Fort Collins’ appreciation rate over the last twelve months has been 6.79 percent.

In the most recent quarter, house appreciation rates in Fort Collins were 3.45 percent, equating to an annual appreciation rate of 14.51 percent. In comparison to the rest of Colorado, their data indicates that Fort Collins’ latest annual appreciation rate is lower than 90% of the state’s other cities and towns in CO.

Fort Collins Housing Market Trends 2021

Fort Collins is a city located in Larimer County Colorado. It sits in the foothills of the Rocky Mountains a short distance north of Denver, Colorado. While Fort Collins is becoming a de facto suburb of Denver, it has long been the main services hub of northern Colorado. Fort Collins has had some of the highest home appreciation rates of any community in the country over the last decade.

Fort Collins is a seller’s market due to tight supply. Months Supply for single-family homes is just 0.6 months or 18 days. A balanced market has between four and seven months of supply. A buyer’s market has a higher number, indicating that there are fewer buyers than available homes. A seller’s market has a lower number, indicating that there are more buyers in relation to available properties.

In October 2021, the median listing home price in Fort Collins, CO was $495K, trending up 11.2% year-over-year (source: realtor.com). The median listing home price per square foot was $241. The median home sold price was $480K. Homes in Fort Collins, CO sold for approximately the asking price on average in October.

• Larimer County is also a seller’s housing market, which means that there are more people looking to buy than there are homes available.
• The median listing home price in Larimer County, CO was $500K, trending up 12.8% year-over-year.
• The median listing home price per square foot was $223.
• The median home sold price was $484.5K.
• Glen Haven has a median listing home price of $959K, making it the most expensive city.
• Red Feather Lakes is the most affordable city, with a median listing home price of $372K.

According to the Fort Collins Board of Realtors’ monthly report for the Fort Collins housing market;

• Closed Sales landed at 244 for single-family homes (- 30.3%) and 81 (- 34.7%) for townhouse-condo properties.
• New Listings were down 16.8 percent for single-family homes and 27.9 percent for townhouse-condo properties.
• The Median Sales Price was up 17.1 percent to $550,000 for single-family homes and 12 percent to $350,000 for townhouse-condo properties.
• The Average Sales Price was up 13.2 percent to $622,122 for single-family homes and 24.1 percent to $419,682 for townhouse-condo properties.
• Days on Market decreased 26.8 percent for single-family homes and 49.2 percent for townhouse-condo properties.
• Months’ Supply was down 50 percent for single-family homes to 0.6 and down 71.4 percent for townhouse-condo properties to 0.6.

According to the Fort Collins Board of Realtors’ monthly report for the Loveland housing market;

• Loveland is also a seller’s housing market, which means that there are more people looking to buy than there are homes available.
• Closed Sales landed at 168 for single-family homes (- 16.4%) and 45 (- 6.3%) for townhouse-condo properties.
• New Listings were down 16.4 percent for single-family homes and 35.1 percent for townhouse-condo properties.
• The Median Sales Price was up 13.8 percent to $478,000 for single-family homes and 12.7 percent to $350,000 for townhouse-condo properties.
• The Average Sales Price was up 22.5 percent to $575,186 for single-family homes and 9.1 percent to $353,808 for townhouse-condo properties.
• Days on Market decreased 34 percent for single-family homes and 4.1 percent for townhouse-condo properties.
• Months Supply was down 30 percent for single-family homes to 0.7 and down 90 percent for townhouse-condo properties to 0.2.

Fort Collins Rental Market Trends

The rents are also on the rise in the Fort Collins housing market. As of November 29, 2021, the average rent for a 1-bedroom apartment in Fort Collins, CO is $1340. This is a 22% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Fort Collins increased by 22% to $1,220. The average rent for a 1-bedroom apartment increased by 5% to $1,340, and the average rent for a 2-bedroom apartment increased by 2% to $1,564.

• The average rent for a 2-bedroom apartment in Fort Collins, CO is currently $1,564, up 16% compared to the previous year.,
• The average rent for a 3-bedroom apartment in Fort Collins, CO is currently $2,100, up 17% compared to the previous year.
• The average rent for a 4-bedroom apartment in Fort Collins, CO is currently $2,570, up 25% compared to the previous year.

Fort Collins Real Estate Market Forecast 2022

According to Zillow Home Value Index, the Fort Collins real estate market is hot. The typical home value in Fort Collins is $519,264. From 2019 to 2020, home prices were up by almost 5.7%. This year has been sizzling hot for sellers as over the past year alone the Fort Collins home values have gone up 19.8% and will continue to rise in 2022.

Data by Redfin, a full-service real estate brokerage, also shows us that the Fort Collins housing market is very competitive. Many homes get multiple offers, some with waived contingencies. The average homes sell for about 1% above the list price and go pending in around 31 days while hot homes can sell for about 4% above list price and go pending in around 11 days.

• The typical home value of homes in Fort Collins Metro is $513,812 (Zillow).
• The Fort Collins–Loveland MSA is defined as Larimer County, Colorado.
• Fort Collins Metro home values (Larimer County) have gone up 19.6% over the past year and Zillow predicts they will still rise 17.9% over the next twelve months.
• The typical home value of homes in Loveland City is $467,495, up 19.5% over the past year and will continue to rise over the next twelve months.

Here is the Fort Collins home price appreciation graph by Zillow. It shows us the current home price appreciation forecast until Oct 2022.

Here are some of the best neighborhoods in Fort Collins to invest in real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).

Fort Collins Real Estate Investment Overview 2022

Is it worth buying a house in Fort Collins, CO? Investing in real estate is touted as a great way to become wealthy.  Many real estate investors have asked themselves if buying a property in Fort Collins is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Fort Collins housing market forecast for answers on why to put resources into this market. Investing in Fort Collins real estate will fetch you good returns in the long term as the home prices in Fort Collins have been trending up every year. Let’s take a look at the number of positive things going on in the Fort Collins real estate market which can help investors who are keen to buy an investment property in this city.

Fort Collins is a short distance northwest of Denver. When you’re sitting on the front range, there’s more flat land to build on; this explains why the Fort Collins real estate market doesn’t see the same insane bidding wars as Denver. If you’re considering Fort Collins investment properties, know that it is like a small town but with all the urban amenities like nearby hospitals and good public schools.

Fort Collins can be considered a suburb of Denver, but the Fort Collins housing market is far cheaper than Denver. The median home costs around 550,000 in Fort Collins, while Denver properties have crossed $570K. The average rent in Denver is 1689 dollars a month. The average rent in Fort Collins is around 1340 dollars a month. This means Fort Collins real estate investment properties have a good return on the investment, and the ROI will likely increase along with demand in the Fort Collins real estate market.

The Social Life Is Better

Fort Collins arguably has a better social life than Denver. This is partially due to Colorado State university dropping a lot of young adults into the Fort Collins real estate market. There are more than breweries and clubs, though the city retains its historic downtown for those who want to connect with history. You’re farther from the big city, too, so there are more outdoor activities available. The La Poudre River even runs through town.

The Fort Collins real estate market has seen steady appreciation because the population itself is growing slowly but steadily. Fort Collins is currently growing at a rate of 1.11% annually and its population has increased by 20.90% since the most recent census, which recorded a population of 143,986 in 2010.

However, the relatively young population creates an opportunity for those who own Fort Collins real estate investment properties. You can rent the property to the steady stream of students, or you can rent it or sell it to the young adults who choose to stay in the area and work for one of the major employers. Interestingly, most of the new residential construction takes the form of apartments geared toward students, so this won’t cause rental rates or property values to decline.

Fort Collins has more jobs than job-seekers. There is a modest skills gap between the high-tech jobs local employers need to be filled and the many lower-skilled graduates in the area. Ironically, this keeps the Fort Collins real estate market in check because salaries aren’t spiraling up like Silicon Valley or Silicon Prairie. The job market contains a broad mix of low-skill, seasonal tourist industry jobs and high-tech employers like Hewlett Packard and Advanced Energy. This creates steady demand for Fort Collins real estate investment properties, whether you rent them out to tourists or locals who don’t want to commit to a mortgage. The four percent annual job market growth, though, will lead more people to the Fort Collins housing market over time.

Colorado in general is business-friendly, and it is lightyears ahead of the West Coast. Colorado ranked among the best places in the country to start a business in 2018. Fort Collins and several other cities on the Front Range hit the top ten list due to factors like relatively low cost of real estate in the Fort Collins housing market, high education levels, low taxes, and strong business incentives. Denver was number one due to the influx of venture capital between 2010 and 2016. The sheer number of aerospace and defense companies in the area plus the significant resources available at the university gives Fort Collins an edge.

It Is Relatively Landlord-Friendly

Colorado in general is landlord-friendly. There are no state laws on rekeying, pet laws, or payment grace periods. Tenants generally have ten days to remedy a violation of the lease or pay back rent or face a rather fast eviction. However, Denver’s Code of Ordinances puts a few restrictions on landlords. That’s a point in favor of holding a Fort Collins real estate investment property over one in Denver.

Whether you’re a tourist hoping to spend a day on the river or the historic downtown or own a Fort Collins real estate investment property, short-term rentals are a lucrative way to get the most out of the city. Property owners have another way to earn money to pay the mortgage. Visitors have more choices than the limited selection of hotels. Students touring the campus, parents attending graduations, and job seekers seeking places to stay all drive demand for short-term rentals in addition to the steady stream of tourists.

The Fort Collins real estate market doesn’t prohibit short-term rentals. Instead, they limited properties continually offered as short-term rentals to areas zoned for bed and breakfasts and hotels. The rules for those who want to rent out their home aren’t as rigorous as Denver’s. Denver requires a permit and can revoke it if a neighbor complains enough. And homeowners in the Fort Collins housing market can rent out a spare bedroom a couple of times a year without having to meet Fort Collin’s rules for permanent rental properties.

Fort Collins Isn’t As Affected by Californian’s Migration

The exodus of people from California to the rest of the West has contributed to population growth from Arizona to Idaho. The influx of Californians contributes to everything from new demands for rent control to more liberalized policies. Fortunately, the Fort Collins real estate market like the rest of Colorado is protected from rent control laws and the way they cause housing prices and open market rents to skyrocket due to a state law passed in the early eighties.

Californians tend to move from one big city to another, so you get people who sell a two million dollar house in California and live it up in a million-dollar property in Denver. The Fort Collins housing market is not bid up or over-loaded by the newcomers. The fact that it retains more of its original character is another point in Fort Collins’ favor.

The Fort Collins area is growing both as an outer suburb of Denver and for its own reasons, making it the fourth-largest city in the state. The city offers an ideal mix of jobs, affordable living, and decent quality of life that will keep it strong for years to come.

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.

The other best place to invest in real estate is Omaha, NE. Omaha isn’t booming, but it isn’t busting, either. It is a slow, steady, and solid real estate market that has quite a few things going for it. It is attractive to residents, allowing it to retain its youth, while it attracts people from across the country in search of work. That isn’t going to make the headlines, but it is exactly the sort of long-term value play that we’d associate with the Oracle of Omaha. Omaha real estate has a track record of generating one of the best long-term returns in the U.S. through the last ten years.

Another sizzling market to invest in real estate is Bridgeport, CT. While Connecticut ranks among the most heavily taxed jurisdictions in the United States, it is a relative bargain compared to its neighbors. This is why New York residents are moving to the area. A side benefit of the lower property values in the Bridgeport housing market is that it translates to a much lower property tax bill when all other things are equal.

Now, talking about the NYC housing market 2022, there are a no. of positive things to seriously consider despite the steep price tag. Prices are relative, and prices are relatively low given New York City’s recent market conditions. While there are a number of regulatory and legal changes being proposed, the odds are that this will only increase the number of distressed property owners while eventually yielding higher rental rates. The NYC housing market can be described as cool, though some will call it a buyer’s market. Things slowed down significantly in 2016 and 2018 as several groups of international buyers found it harder to buy properties or had less need to do so.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. 

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.

References

Housing Market Data, Trends & Statistics

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