Real Estate

Single-family home prices are on the rise, and inventories are down across Northern Colorado.

It’s far from a roaring comeback, but it’s enough for local real estate firms to begin hiring again and for real estate agents to feel a modicum of confidence returning.

Loveland and Fort Collins at midyear were experiencing the strongest increases in home prices, as they had for many consecutive months, according to data compiled by Information Real Estate Services, a multiple listing service operated by boards of realtors in Fort Collins, Loveland, Greeley, Berthoud and Longmont.

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Rocky Mountain Health Plans (RMHP), part of the UnitedHealthcare family, has pledged its commitment to uplift these communities through substantial investments in organizations addressing the distinct needs of our communities.

The number of homes sold was also increasing in Northern Colorado, resulting in smaller inventories, which will eventually get homebuilders back on their feet as they try to keep up with the demand.

The rental market is also strong in Northern Colorado, with residents who either can’t or choose not to purchase a house moving into rental properties instead. Both multi- and single-family rentals fill up quickly. Vacancy rates fell to new lows in 2012, with Fort Collins at a 2.6 percent vacancy rate and Loveland at 4.5 percent in the first quarter.

Low vacancy rates drive up rental prices, and average rents in Fort Collins surpassed $1,000 in the first quarter. Average rents in Loveland and Greeley were $968 and $668, respectively.

Commercial real estate remains a challenge in Northern Colorado, but a few high-dollar properties were picked up by investors in the first part of 2012, thanks to quality tenants.

One such deal was the purchase of the Northern Colorado Rehabilitation Hospital in Johnstown for $29.5 million. The building was purchased by an out-of-state investor, and then rented back to the tenant. Local real estate professionals agree that doctors and their practices make stable tenants, enticing investors and helping pull commercial real estate back out of the recession.

Weld County, meanwhile, is running out of industrial space as more oil and gas companies move into the area. Energy giant Halliburton announced the opening of a hydraulic fracturing sand terminal in Windsor that will employ 500, signaling once again the impact of oil and gas on the economy in Weld County.

On the flip side, industrial vacancy rates remain high in Loveland, where the rate was 16 percent as of April, down just slightly from 17 percent in April 2011.