Looking to buy a home? Now may be the best time



By Erin Frustaci
For Fort Collins Now
For months, national headlines have screamed of the housing crisis gripping the country. The number of foreclosures has skyrocketed and home values have plummeted, sending the economy into a frenzy.

While Northern Colorado has seen some of the shift on a smaller scale, the truth is these headlines don’t tell the full story on a local level.

Real estate experts suggest that the Fort Collins market is relatively stable and healthy. Combined with historically low interest rates, a promising outlook for price appreciation in the next few years, and the existence of a few motivated sellers who are facing impending foreclosures, there may not be a better time to buy a home in the Fort Collins area, some experts suggest.

In some areas of the country, home prices continue to depreciate, and some potential buyers may be waiting to see the market hit rock bottom. But according to a recent Colorado State University study, home prices in Fort Collins actually grew slightly in the past year, suggesting that the bottom has already occurred here.

Historically low interest rates add to the temptation to buy a home.

“Interest rates allow buyers to afford more home for the same amount of money than what they could afford a few years ago,” said Brandon Bidwell, broker associate with Remax Alliance and member of the Fort Collins Board of Realtors.

For example, two years ago interest rates were about 6.25 percent. Now they are about 5 percent. That makes a big difference to the buyer when it comes down to the monthly payment, Bidwell said.

The recent CSU real estate study showed that five of the 11 major housing markets in Northern Colorado have experienced price increases in the past year. Fort Collins is one of the five.

“What happens with the national headlines doesn’t apply to Fort Collins,” said Rick Hausman, supervising broker with Benchmark Realty LLC.

Sure, the Fort Collins market has been impacted and it might be a little harder to sell a home than it was five years ago, he said, but homes aren’t seeing the drastic drop in value compared to other places. It’s a smoother and steadier market.

Hausman said it’s important to note that there are even markets within markets based on price points and geography.

“The low end of the market is super hot right now,” he said.

Bidwell agreed, adding that in general he has seen inventory shrink, a good sign for the housing industry.

“The majority of that shrinking is in the single-family homes under $250,000,” he said.

He attributes that to the first-time homebuyer tax credit, and said he has seen lots of first-time homebuyers take advantage of the incentive in Fort Collins.

Furthermore, each neighborhood within Fort Collins is different. There are a few that may have depreciated in value. And yet, areas like Old Town remain in high demand. Hausman said it’s common for neighborhoods that are centrally located and closer to jobs to hold their value.

He said overall, Fort Collins was not seeing the movement six months ago that is seeing now, especially in the lower prices.

“Fort Collins is like the slow and steady turtle, never dropping but climbing slowly,” Bidwell said.