Keller Williams Realty of Northern Colorado

April 2010 was a good month for Fort Collins Real Estate! Each month we track the following leading market indicators for Fort Collins, Colorado:

• U/C = Under Contract
• Solds = Number of sold properties
• MSI = Month’s Supply of Inventory

To properly examine the market, we explore these indicators separately for single-family detached homes and single-family attached homes. Here is what we found in April:

Single-Family Detached Homes
In comparing April 2008 to April 2010, the market for single-family detached homes improved across the board. The number of under contract properties was up 33% and the number of sold properties was up 4%. Perhaps the most promising figure is the MSI (Month’s Supply of Inventory). In the two year comparison, MSI dropped by 32%. This means the market inventory is tightening, which is critical for price stabilization.

Why do we care so much about MSI? The MSI is an estimate of how long it will take for all the homes in a market area to be sold, or absorbed, based on the number of homes currently on the market and the rate that homes have sold in the past. A market is considered balanced when the MSI falls between 5-7 months. Under 5 months is considered a sellers market and over 7 months is considered a buyers market. The MSI for Fort Collins single-family detached homes has been dropping over the past two years and as of April 2010 is at 3.6 months overall.

Single-Family Attached Homes
The single-family attached housing market for Fort Collins is also showing signs of improvement. While the number of sold properties was 25% less in April 2010 compared to April 2008, the number of under contract properties rose sharply by 38% – a good sign for future closed sales. The MSI also improved for single-family attached homes, evidence of tightening inventory.

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Posted By: Keller Williams Realty of Northern Colorado – Fort Collins Real Estate Agents,
specializing in Fort Collins Real Estate and Northern Colorado Real Estate
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