Fort Collins Real Estate Market: Historical Trends and Future Predictions

Fort Collins, Colorado, is a beautiful town with natural splendor and vibrant urban life. Known for its friendly and welcoming community, Fort Collins offers residents a warm and inviting atmosphere. As a college town, it is anchored by the prestigious Colorado State University, which infuses the area with youthful energy and a commitment to innovation and education.

Outdoor enthusiasts will enjoy plenty of recreational activities, from hiking and biking in the nearby mountains to water sports on the Horsetooth Reservoir. The town's dedication to preserving green spaces and promoting an active lifestyle ensures an adventure is always waiting outside your door. Fort Collins is also a haven for food lovers, offering a diverse array of great restaurants that cater to every palate alongside bustling shopping districts that feature everything from unique boutiques to well-known retail stores.

The cultural scene in Fort Collins is equally impressive. Whether you visit one of the many art galleries, attend a live performance at the Lincoln Center, or enjoy one of the city's numerous festivals, there's always something happening to engage and inspire. This blend of outdoor beauty, community spirit, educational opportunities, and cultural richness makes Fort Collins a desirable place to live and invest in real estate.

As of April 2024, the Fort Collins housing market demonstrates robust growth and resilience. The median sold price for homes in Fort Collins reached $627,000, marking a 4.4% increase from the previous year. This steady rise in home values highlights the area's ongoing appeal and desirability.

In comparison, the national median home price was $366,733, underscoring the premium buyers are willing to pay to live in this vibrant Colorado community. Statewide, the median home price in Colorado was $559,980 in April 2024, reflecting a 5.7% increase from the previous year. This trend indicates a robust real estate market throughout the state, with Fort Collins leading the way.

Another significant indicator of the market's health is the percentage of homes sold at or above the asking price. In April 2024, 99.7% of homes in Fort Collins achieved this benchmark, demonstrating the local market's strong demand and competitive nature. This statistic highlights buyers' confidence in the long-term value of Fort Collins real estate and sellers' willingness to meet market expectations.

Denver, the state's capital and largest city, saw a median sold price of $628,229 in April 2024, a 3.4% decrease from the previous year, indicating a slight cooling off. Despite this drop, Denver remains a seller's market, with high demand continuing to drive competitive sales.

Boulder, known for its stunning natural landscapes and vibrant cultural scene, had a median sold price of $1,004,781 in April 2024, a 5.4% decline from the previous year. The high property values reflect the city's ongoing desirability, and the premium buyers are willing to pay to live in this prestigious area.

Longmont, another nearby city, reported a median sold price of $585,575 in April 2024, a modest 0.7% decrease from the previous year. Like Denver and Boulder, Longmont continues to experience a seller's market, where demand outpaces supply, maintaining a competitive atmosphere for buyers. While each area faces different price adjustments, the overarching seller's market condition suggests that demand remains strong across the region.

The housing supply in Larimer County for single-family homes has shown significant movement over the past year, reflecting a dynamic market with increased activity. In April 2024, there were 606 new listings, a notable rise from the 513 new listings recorded in the same month last year. This increase in new listings provides more opportunities for buyers to find their ideal home.

The number of sold listings also saw a slight uptick, with 374 homes sold in April 2024 compared to 366 in April 2023. This steady increase suggests a healthy demand for single-family homes in the area and successful transactions despite competitive market conditions.

Homes in Larimer County are also selling faster. In April 2024, the average number of days a home stayed on the market was 55, down from 62 days the previous year. This reduction in days on the market highlights the efficiency of the current market and buyers' eagerness to secure properties quickly.

Another key metric, the monthly supply of inventory, rose to 2.3 months in April 2024 from 1.5 months in April 2023. While still relatively low, this increase indicates a slightly more balanced market, offering buyers more choice than in previous months. Overall, Larimer County's housing supply trends suggest a robust and active market, providing buyers and sellers with various opportunities and a competitive yet manageable environment.

Fort Collins offers a promising landscape for investment properties. The average rent for a two-bedroom home in Fort Collins has climbed to $2,125, a 12% increase from the previous year. This upward trend in rental prices highlights the strong demand for rental properties and the potential for substantial returns on investment.

Comparatively, nearby Boulder has seen a decline in rental prices, with the average rent for a two-bedroom home at $2,587, down 8% from last year. Similarly, Longmont's rental market has experienced a slight decrease, with the average rent for a two-bedroom home at $2,105, down 3% from the previous year. These trends suggest Fort Collins is attractive for investors seeking a steady and growing rental income.

Adding to its appeal, nearly half of the homes in Fort Collins — 48.3%, to be precise — are rental properties. This high percentage of rentals indicates a robust market for landlords, with a steady stream of tenants and a community that supports rental living. The strong rental market is bolstered by the town's vibrant economy, driven by Colorado State University, thriving local businesses, and Fort Collins's appealing lifestyle.

The current market conditions offer a favorable landscape for those contemplating an investment in Fort Collins real estate. Mortgage rates are expected to gradually decrease as inflation slows, although significant changes in either are not anticipated soon. This stable outlook suggests that potential investors can plan with a reasonable expectation of predictability in their financing costs.

Historical trends in home values further bolster the case for investing now. Nationally, home values have been appreciating steadily since 1965, typically doubling in value approximately every ten years until 2000. After 2000, the doubling of home values took a bit longer, occurring around 2017. The long-term trend remains positive, indicating that real estate continues to be a solid investment with significant potential for growth over time.

The local market's strength and resilience in Fort Collins enhance this positive outlook. With the median home price rising, a balanced supply of homes, and a thriving rental market, buyers and sellers are well-positioned to benefit. For sellers, the current market conditions suggest they can achieve competitive prices for their properties, and buyers can take advantage of the stable interest rates and the promise of long-term value appreciation.

Marnie Long has helped thousands of families find their ideal homes and make sound investment decisions. Her expertise and dedication have earned her a place in the top one percent of all real estate professionals nationwide, a testament to her exceptional skills and client-focused approach. As a renowned Fort Collins real estate agent specializing in Fort Collins homes for sale, her unparalleled expertise, extensive experience, and client-centric approach make her the perfect partner for your real estate journey.