August 23’ - Listing Spotlight
It seems that this past August really saw a slowdown in market activity across Old Town (and the market in general). In fact, the amount of homes listed in August 2023 was 9, compared to 18 listed in August of 2022….which is a pretty large swing year over year. Looking back even further to 2021 where 17 homes were listed that August, it seems evident that this particular month has been slow in the Old Town market. Within this years listed inventory, only about half of the properties are either under contract or sold, and a majority of those properties fall under $700K.
As has been the story all year long in the real estate market, higher interest rates very much be to blame for a slowdown in both listings and the speed of sales. To look comparatively, the interest rate in August of 2021 (17 homes listed) was at 2.75-3%…about as low as we’ve seen in. In August of 2022 (18 homes listed) the rates were hovering around 5-5.5%. The current rates in August 2023 (9 homes listed) was around 7-7.25%, which is about as high as rates have been in the last 2 decades. The market truly is turning into a “have to sell” market where most homes hitting the market are predicated on the sellers need to sell a home, whether for relocation, financial purposes, divorce, or other reasons. Quite frankly, most homeowners who owned through lower interest rates took advantage of those rates through refinances, and now are stuck with “golden handcuffs”….IE perhaps they would like to upgrade or change, but it is a tough pill to swallow to leave a low interest rate for a higher rate.
There has also been a heavy return to seasonality in the market that we saw pre-covid. During the last 2-3 years, the market remained heavily weighted towards the sellers as the inventory was so low and demand was so high (due to available rates), which caused a quick moving market even through the traditionally slower months of late summer into fall/winter. However, this year that “high” point in seasonality peaked earlier than normal around March/April, and we’ve seen a steady decrease in market speed and climbing inventory up until August. I do think that September/October provides an opportunity for sellers to list homes and get good activity. In months past, when there has been an overall shortage in a previous month, the inventory in the following month tends to attract higher than usual interest.
Here is an overview of what hit the market this month and my thoughts on each property.
311 N Whitcomb St, Fort Collins, 80521
Listed by Nathaniel Addison, HUB Real Estate
List Price: $294,000
Sold Price: Active (as of 09/05/23)
Difference: TBD
There have been a handful of these properties for sale this summer as part of an affordable housing program associated with a land trust. The price is reflective of the fact that the purchaser would be owner of the improvements only (IE, the land is still owned by the land trust). This means that the new owner would still pay a small land lease each month (about $100 each month) but would own the home itself and would be able to gain equity on the home over time. That equity would not increase at the same rate as a standard property, but it could still be a path to home-ownership for those who don’t make quite as much money. If the interest rate was a bit lower, I think these homes would be selling at a much faster clip.
104 S. Shields St, Fort Collins, CO 80521
Listed By Jenny Plum, EXP Realty
List Price: $429,000
Sold Price: Active (As of 09/05/23)
Difference: TBD
Parking will always be a concern on this particular property as it is located on Shields st. to the south of Mountain Ave. There is a driveway for off street parking, but its proximity to the stoplight and turn lane means that there will frequently be idling cars out front. Inside is nice enough, although small, and really would only suit a small sector of potential buyers (probably a single occupant or perhaps a couple). There isn’t much of a yard, so owning a pet here would also be tricky. This home took a while to sell last go around in 2017/2018, and I would suspect that the same will be true on this go-around, especially with the cost of borrowing money.
504 Hanna St, Fort Collins, CO 80521
Listed by Gillian Bliss, Evergreen Real Estate Group Inc.
List Price: $450,000
Sold Price: Pending Sale (8 Days to Offer)
Difference: TBD
Perhaps a bit tight in space for a 3 bedroom/1 bathroom, but this ranch style home on the North side of Old Town was under contract is 8 days. I suspect that the overall pricing was helpful in getting this one under contract, and it does look like it is neat and tidy despite having been a rental for the past 20 years.
411 W Oak St, Fort Collins, CO 80521
Listed by Robin Busteed, Cobblestone Realty
List Price: $525,000
Sold Price: Pending (4 Days to Offer)
Difference: TBD
I see lots of potential and charm in this particular home that is located very close to downtown. There isn’t much of a yard/lot to speak of, but the home itself looks to be bright and spacious with some nice vintage look to it. I could see this suiting a rental investment potentially, or a first time home-buyer looking for an affordable option in getting into a home in Old Town.
410 S Shields St, Fort Collins, CO 80521
Listed By Cheryl King, The Group Centerra
List Price: $545,000
Sold Price: Pending (5 Days to Offer)
Difference: TBD
As a home on Shields goes, this one has a lot going for it. 4 bedrooms and 3 bathrooms is hard to come by in Old Town, especially at this price point, which definitely helped drive the sale. The interior also hase some really nice charm associated with craftsman style finishes that, while neglected over the years, could still be polished up to shine again. The only negative (besides the Shields road noise) that is see on this one is the lack of a garage, although alley access would provide an opportunity to add one into the future.
415 N Shields St, Fort Collins, CO 80521
Listed by Kristie Dehn, Hops and Homes
List Price: $556,500
Sold Price: $556,500
Difference: 0
This one had a really nice appeal to it overall, with a nice kitchen and some decent bedrooms. The lack of a garage and the location on Shields didn’t slow down the activity on this home and it received a full price offer just after the first week on the market that closed fast.
223 N Whitcomb St, Fort Collins, CO 80521
Listed by Emily Heinz, Downtown Real Estate Brokers
List Price: $725,000
Sold Price: Active (As of 09/01/23)
Difference: TBD
This one somewhat surprises me that it hasn’t gone under contract as it looks like it has some great charm, space, and upgrades. I do think that the layout is probably a bit choppy for some who prefer that open concept feel, but pricing seems to be pretty well on point for the size, style and location. This could be a great opportunity for a buyer in this market!
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226 N Mckinley Ave, Fort Collins, CO 80521
Listed by Dave Trujillo, The Group Centerra
List Price: $835,000
Sold Price: Active (As of 09/01/23)
Difference: TBD
This is another somewhat rare find in Old Town, as it is difficult to find homes of this size, style, and condition that aren’t pushing a million dollars. Some may be a bit deterred by the neighborhood, which is nice, but not quite the same aesthetic appeal as other neighborhoods a bit further south in Old Town. Similar to 223 N Whitcomb, I think that this home presents a great opportunity for an Old Town buyer!
308 S Howes St, Fort Collins, CO 80521
Listed by Amber Cano, Dynamic Real Estate Services
List Price: $895,000
Sold Price: TBD (Active as of 09/01/23)
Difference: TBD
Not much neighborhood feel to this property, but certainly some great charm and appeal inside of this home. The overall layout may feel a bit tight for some with lots of the finished space in the basement. This home has previously been used a short term rental, so if there was a possibility to utilize the upstairs for living and the basement for rental, it could be a nice fit for a buyer who has that type of flexibility.
