It’s still buyer’s market for homes in NoCo region

You’ve heard of the trickle-down theory? Well, Northern Colorado is benefiting from what you might call a trickle-up theory.

Real estate experts say homebuyers are shifting their attention to the Rocky Mountain region from normally popular southern regions. Thanks to 50 percent to 100 percent appreciation rates in places such as Arizona, Las Vegas; Reno, Nev., and California, Northern Colorado is drawing buyers seeking more bang for their buck.

“The median price in California is over $500,000 and here it’s $250,000,´ said Dave Pettigrew, a real estate broker with Prudential Prime Properties in Fort Collins. “Both our existing-homes market and housing starts have been flat for probably four to five years, so a lot of people from these regions are looking at Northern Colorado.”

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The total volume of sales for Northern Colorado, which includes all of Weld and Larimer counties (except for Estes Park), was up 4.1 percent for 2005. This figure nearly matches the National Association of Realtors’ estimated 4.7 percent increase in national home sales for the year.

Other Front Range cities have held steady as well, except for the slightly higher activity in El Paso County. Thanks to the increased military activity at Fort Carson, home sales in 2005  in the Colorado Springs area improved by 11.4 percent, with an average price of $245,227.

Denver’s metro region saw a slight dip in sales, with an average price increase to $281,200.

According to Pettigrew, more retirees, telecommuters, entrepreneurs and service workers have been immigrating to Northern Colorado in recent years. New homebuyers and builders include East Coast refugees escaping the cold and seemingly endless hurricanes.

“We’re attractive, due to our lifestyle and climate. But many of these people can move here because they’re retirees who can live anywhere and still draw their Social Security. Some are telecommuters and entrepreneurs, who can choose where they live, and there is always a demand for service industry workers. The retirees are particularly attracted to health care, and that’s growing in this region.”

Weld County

That doesn’t mean this is a seller’s market, however. Bill English, president of the Greeley Area Realtors Association, said he’s seen a slowing in turnover.

“The phone isn’t ringing as much as it used to for existing houses. Starts are doing better because new construction has better insulation, better windows and they’re more energy-efficient.”

Weld County, which includes Greeley, Windsor and Johnstown, saw a 1.2 percent decrease in sales from 2004. The average home sale price was $209,989, for an increase of 3.6 percent.

Alan Jones, president of the Loveland/Berthoud Association of Realtors, said low interest rates are driving would-be renters to buy or build their own homes. But home sellers face a buyer’s market, thanks to a glut of residential properties on the market.

“It’s probably a better time to buy than to sell, but I don’t think it’s going to be that way for the next several years. The important thing right now is to make sure your home is in the best possible condition before it’s placed on the market. The houses that are selling are in pristine shape with a bit of land, a larger garage, lots of hardwood – anything that makes it stand out from the pack. Still, you could put $20,000 into a house and sell it, but you may not get it back.”

Larimer County

Sales for southern Larimer County, including Loveland and Berthoud, were fairly flat as well. Only 26 more homes sold, for a 1.1 percent increase in sales. The average sale price in residential properties increased 5.8 percent to $265,069.

 Fort Collins experienced a unique situation in 2005 with an influx of downtown loft properties, said Eric Nichols, president of the Fort Collins Board of Realtors. He noted many of the buyers for these homes come from out of town and are willing to pay the $200,000 to $1.4 million for what he defined as essentially upscale condos.

“We also saw a lot of strength in the outlying areas of the county,´ said Nichols. This includes the Red Feather Lakes area, Glacier View, Livermore and some of Masonville. Part of that is a generational thing, with Baby Boomers who are ready to retire buying in that neck of the woods.”

Northern Larimer County saw a 2.4 percent decrease in the number of sales. This includes Fort Collins, Wellington, Red Feather Lakes and other small mountain properties. The average price increased 6 percent to $245,574.

Despite the modest price appreciation, housing starts and home sales throughout the region, Pettigrew said he’s optimistic about 2006.

“I expect it’ll be a record year for residential sales in this area,´ said Pettigrew. “We’re not going to see double-digit increases, but I think our home sales and appreciation will be up about 7 percent. Our relatively low price appreciation puts us on the radar screen of potential employers and businesses. It could be a fairly good year.