Fall is a beautiful time and real estate is looking good as well. The real estate in Berthoud and west is still on the rise. We are up on most factors since last month and well ahead of last year at this same time. Average price is up, interest rates are up (but still at historic lows), inventory is up, days on market is up, land sales are up and most importantly the out look is up. Its still a good time to be a seller but being a buyer is becoming less frenetic.
For some time now it has been a strong sellers market, meaning sellers do really well and buyers have to scramble. Any of you that have been party to a multiple offer deal know exactly what I’m talking about. While it is still a sellers market things are starting to calm down. Certainly the interest rates going up have helped to calm things but even more importantly there is more inventory. As of today, Berthoud West has $43,827,335 in real estate available with an average price of $466,248. This is a large increase over last year driven by the strong appreciation of 2015 but also some large parcels such as 1325 S Highway 287. Because there is more inventory there are more choices for the buyer and thus “days on market” is starting to increase. This has allowed buyers to take a breath before they jump into an offer.
What are buyers buying? The average home sold price is $382,284. Thats up from last month ($360,454). While Berthoud has its share of higher priced homes the majority of sales are still in the $250k to $375k price range. Berthoud has good rate of sales rurally but the sales in town are still stronger when we compare number of sales and days on market. The west side of town seems to be in slightly higher demand than the east side using the same factors.
What does all this mean and where are we headed? Well, no one can know for sure (my crystal ball broke some time in my adolescents) but given the current trends we should see a market that starts the pendulum swinging towards a more balanced market where sellers are still getting a fair price for their home, selling in a reasonable amount of time. Buyers will still have to be focused and competitive but perhaps not so frenetic. Prices will still increase due to the strong economy in Colorado and finite supply of building sites, but at what rate? Again, its hard to say as there are many wild card factors. While Berthoud is a small community with some buffer around us we are still affected by the large economic drivers around us. Will the Fed’s raise rates? Most believe they will but when is the question. The world economy has the Feds concerned and they may hold off on any rate increase for a time.
Another factor, more local, is the Cannabis economy. Whether you like it or not it has contributed to demand for not only single family homes but commercial space as well. Will it remain as it is? Will there continue to be road blocks in how they do their banking or will that normalize? I’m not taking a side on this but just pointing out that it has an affect on demand for real estate and there are still a lot of questions around it. In truth there are really too many wild cards state wide and globally to list but they all have an affect on our little town, but for the time being, things seem pretty good.
So if your looking to sell, now is still a good time with strong demand and rising prices. If your looking to buy, well, now is a good time as well. There are no forecasts that are predicting falling prices in the near future and with a possible rate increase looming down the road your best deal will be had sooner rather than later. If you would like to discuss real estate with me please don’t hesitate to contact me.
*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.