Due to rising housing prices in northern Colorado, new builds are becoming a more attractive option for buyers. For the last couple years, it has been so difficult to get into a property, that many buyers simply threw their arms in the air and decided to spring for new construction. I wanted to take a brief moment to comment on new builds in Larimer County. The following graph shows the yearly trends in new construction since 2005.
While Larimer County has seen its median transaction value continue rising, we have also seen the number of new build sales decrease during this last year. This may be because land is more scarce in Fort Collins and many builders are looking at places like Ault, Greeley, and Johnstown to develop. This means that in Larimer County it is a great time to sell your home. Prices are still strong and there are folks looking for existing houses to get into. Often, new builds take months to complete, which is a challenging timeline for buyers who need a place in the short term, especially if they need to sell their current home to make it happen.
Another graph to highlight is the following, which shows the percentage of new builds vs resale vs REO (foreclosures) based on home value.
Why is this notable? It is important because if you have a home that's market value is between $300,000 and $499,000, it may be a good time to sell. There is clearly a strong movement toward new construction in these home values. This means resale homes are scarce and in high demand. Don't be fooled though, resale homes in almost any price are fairly scarce in this area and are still selling quickly.
New builds are a great option for someone looking to tailor their home to exactly the features they're looking for and they are easier to get into compared to resale homes. If you don't have to find a place right now, new builds could be a great option to consider.