Northern Colorado Market Update
Pricing Right in Today's Market Can Mean the Difference Between Crickets and Multiple Offers
As we move through late summer, the market is behaving much as anticipated. It is slower than the fast-paced seasons we have grown used to in NoCo. Homes are taking longer to sell, and buyers have more options and leverage than they did just a year ago.
But as slow as it may feel to realtors and consumers accustomed to our market firing on all cylinders, NoCo's median prices have been stubborn to correct. Larimer County is only down about 1% and Weld County is actually 2% higher than July of 2024. Zillow projects NoCo will lose just 1% of its median price over the next year.
But for someone who has their house in the market right now, the correction feels more substantial than that. After the initial barrage of showing activity during the opening weekend, a typical listing gets 1 or two showings a week at most. This can feel painfully slow to a home seller anxious to get an offer and be on with their life.
Many home sellers start to feel hopeless after they've been on the market for a few weeks without an offer. But in many cases, a 2-3% price drop is often enough to get the home sold within a week.
Why Sellers Resist Dropping the Price:
- They worry it will stigmatize the home.
- They assume buyers already know they can offer less.
- They believe a lower list price will mean accepting an even lower offer.
All three are myths. In reality, buyers often feel uncomfortable lowballing, and they are most likely to make an offer when a property is priced right where it should be.
Real-Life Example:
We had a listing on the market for about five weeks with one small price drop but no offers. The seller needed a quick sale, so we lowered the price another 3 percent, which was their bottom line. Suddenly, the next two buyers through the door loved it and were ready to write offers. A bidding war followed, pushing the price back up to our previous list price.
It may seem illogical, but buyers are incredibly price sensitive. If you are padding your price to allow for negotiation, you risk being overlooked entirely. Price your home at the lowest number you are truly willing to accept, and you will often be rewarded with a faster sale.
A Note on Interest Rates:
Mortgage rates have dipped to 6.58 percent following a weaker-than-expected jobs report. If the job market continues to soften, rates could fall further. Last fall, rates briefly hit 6.2 percent, which brought a noticeable surge in demand. If rates reach the high 5's, expect the market to heat up and prices to appreciate again in NoCo.
If you would like to chat more about the northern Colorado housing market, or are thinking of buying or selling, drop me a line!
KellyRenzRealEstate@Gmail.com 970.820.0750
