What a difference a half decade makes. As recently as 2012, homes priced at $250,000 or less represented a vast majority of all sales in Northern Colorado – 68.5 percent during the first half of 2012. So far in 2017, only 17.7 percent of regional sales fall in the same price category. Two different factors have brought about this shift in the pricing landscape. First, since the local housing market started shaking off the shackles of the Great Recession, rising demand and a general lack of inventory have combined to drive prices up on single-family homes throughout the region. Second, the lack of availability of condominiums for sale has reduced the number of lower-priced options for first-time homebuyers. As we’ve discussed here in recent editions, Colorado law made it easy for builders and developers to get sued over alleged construction defects, a fact that has deterred development of new condominiums in recent years. It’s believed that recent changes in the law could begin to reverse the trend. So, where have all the homebuyers gone? Here’s a snapshot of how different price categories are attracting buyers in Northern Colorado after the first six months of 2017: • 70 percent of all sales across Northern Colorado this year are in the price range of $250,001-$500,000. That compares to 27.6 percent at the same time in 2012. • 475 homes priced between $500,001 and $750,000 were sold so far this year, more than four times the total (118) in 2012. • Similarly, 87 homes priced between $750,001 and $1 million have been sold this year, or nearly four times the 22 sold in 2012. • In the highest-priced category, 34 homes have sold for more than  $1 million so far, compared to eight in 2012.

 

The Group Incs Insider September 2017