Following the holiday season of July 4, there has been a noted decrease in listing activity in Old Town. There were only 14 homes listed in all of July 2015, compared to 26 homes listed in the previous month. In fact, a portion of the current active inventory in Old Town consists of homes and attached dwellings listed in June.
A majority of the current active listings in Old Town are either priced above $350,000 or are attached dwellings. There is still one listing priced in the $250K range that was under contract, but is now back on the market. This listing was located directly adjacent to busy Shields st., but will likely be back under contract in relatively short time due to it s pricing and general location.
Sold volume in July remained fairly constant ($8.1 million) from the sales volume of June ($8.4 million). Both June 2015 and July 2015 saw 21 homes sold, but the median home price did decrease month over month with a July median home price of $302,500. This was a decrease from the last month where the median sale price was $342,000. One again, the median home price is primarily being driven by homes sold in the neighborhoods north of Laporte Ave where there still are some smaller ranch style homes that provide a decent value for the money.
Here are a few thoughts and trends that I found interesting while looking at the year over year statistics in Old Town.
List Price Vs. Sales Price:
Firstly, there were many more homes sold in 2015 than in 2014. In July of 2014, there were only two homes that sold for more than their list price, and both of those homes were priced in a very competitive price range around $250K. Comparatively, in July of 2015, 10 of the 21 homes sold had final sale prices above their list price. A majority of these homes were priced under $400K. I have noticed that not all homes in the lower price range ($250-$300K) are selling for more than asking price. This could possibly be due to the quality of specific homes mixed with aggressive pricing during a period of slower buying activity.
Days to Offer:
Traditional real estate trends show that the first 30 days of showing activity are crucial in generating offers and maximizing sales price of a property. The trend we are seeing throughout Fort Collins is that 14 days is the new threshold for showing activity. Because most homes have been under contract in less than 14 days, when a home passes that threshold, perceived values tend to diminish, regardless of price range. In July of 2014, nearly half of the 13 homes sold were under contract in < 14 days. July 2015 saw 21 homes close, of which more than half remained available for more than 14 days. This is a large change from last month where nearly all homes that sold were under contract in less than 14 days. This change of “Days to Offer” is likely due to a smaller amount of active buyers in the days and weeks following the 4th of July Holiday. In general, July was a much quieter month in terms of showing activity.
Cash offers have become more prevalent in the market place over the past year. However, conventional loans still dominate the market place, especially for the month of July. In July of 2014, conventional financing and cash financing were split nearly 50/50 for all homes sold. Comparatively, in July of 2015, nearly all closed deals had conventional financing with only 3 of 21 closings financed with cash.
There was a definite decrease in buying activity during the month of July as families and agents both spent time traveling and enjoying the late summer months. This reduced buying activity as well as reduced listing activity will become evident in the August/September sales statistics as most of the inventory that sold in July was listed in early June and late April when buying activity was also very high.
The market seems to be “waking up” again as the summer months are quickly coming to a close. I have already seen an increase in buyer and seller activity as we move closer and closer to the fall season. Effective pricing is still the most powerful tool a homeowner has in getting their home under contract in short order. Competing offers are still prevalent for homes that are priced in “the sweet spot” of perceived value. However, the amount of offers present will likely be decreased compared to the spring buying season as the amount of buyers may slightly decrease from renewing rental leases. Maintaining a realistic approach towards pricing and value will help get your home sold.
For buyers, remaining patient during this period will be critical as more homes will become available after this slight lull in listing activity. Less competing offers means that offers may not have to be as aggressive to get under contract as they needed to be in March-June. Interest rates still remain low, although they will most likely increase sometime in the near future.
*Not all properties were listed and/or sold by 8z Real Estate. This data is based on content supplied by REcolorado, IRES, PPAR, and/or MLSListings. Content is deemed reliable but not guaranteed. Content may not reflect all real estate activity in the market.