HOUSING

a dramatic slowdown in activity,” said Ann Hayes, a Realtor with Keller Williams Colorado West Realty in Grand Junction. “A lot of people, with the change in the interest rates, were priced out of the market.”

Mesa County saw a 3.4% dip in its median-sales price, falling to $379,950 in January. at makes it a little more a ordable for rst-time buyers. But even though mortgage rates are below their peak, they are still above 6.5%. And that’s keeping homeowners in their homes, too.

“Sellers don’t like the fact that they’re at a 3% (mortgage loan) rate and if they buy a replacement, they’re going to be at six, or six and threequarter rate,” Hayes said. “A lot of sellers are not even coming on the market.”

Some perspective

But the past two years have just been unprecedented, said Hayes, who’s sold houses in the area since 1994. Fifteen years ago, mortgage rates were in the 6% to 7% range, and back in the 1980s, they were double digits, with 30-year xed rate loans averaging 18.63% in 1981, according to Freddie Mac historical data.

Still, Mesa County is a relatively hot market. e number of houses for sale in the area in and around Grand Junction has doubled in the past year to 456, compared with inventory of 1,816 homes in 2016, according to CAR. Over time, she said, buyers adjust to higher rates and higher prices if that’s where the market goes.

“People will have more babies (and) that will encourage people to think about doing other things,” Hayes said. “Life will start happening where it’s, ‘Well, I don’t like the interest rate, but, you know, a two-bedroom house with four kids isn’t going to work anymore.’”

Ask anyone in the real estate industry and they’ll tell you buying a house is a long-term investment. Values go up overtime even after slumps during downturns.

“At no time in recorded history have prices, generally speaking, decreased,” said Leprino, pointing to the price dips of 2008, the early 1990s and other recessions. For the most part, the price of a house today is much higher than it’s ever been.

Higher prices, multiple o ers still exist

But every market is di erent. Places like Pagosa Springs are dealing with a scarcity of houses below

Feb. 6

Police issued a summons to a 42-year-old Fort Lupton man in the 700 block of Denver Avenue for driving with fictitious plates.

Police arrested a Fort Lupton man, 31, at U.S. Highway 85 & State Highway 42 on an Adams County warrant for assault on a first responder. He was held bond at the Weld County jail.

A Fort Lupton man, 28, was arrested in the 1700 block Oak Street for aggravated assault and obstruction of a peace officer. He was held on bond at the Weld County Jail.

Feb. 7

Police arrested a Fort Lupton woman, 44, in the 100 block of South McKinley Avenue on a Fort Lupton warrant for failure to appear on a public order offense. She was released on a public recognizance bond.

A Lakewood man, 36, was taken in custody at Pacific Court & Stage Drive on a Douglas County warrant for a traffic offense. He was held bond at the Weld County Jail.

Feb. 8

A Fort Lupton woman 30, was arrested at Third Street & Main Street on a Weld County warrant for motor vehicle theft. She was held on bond at the Weld County Jail.

Police arrested a Fort Lupton woman, 59, at their median sales price, which increased a whopping 33% to $520,000 in January. Local Realtor Wen Saunders said the lower-priced homes below the $400,000 range “were gobbled up with low interest rates and cash buyers,” and many who were buying a second home.

“ e bread and butter for Pagosa was always somewhere in the $300,000s. at was a beautiful thing. In 2021, we sold 105 and in 2022, we sold 56. Why? Because we didn’t have any more,” said Saunders, who’s been a Realtor in Pagosa for 14 years.

Meanwhile, the million-dollar homes went the other direction. Back in 2017, she said Pagosa had a ve-year inventory of million-dollar homes and only about ve sold in a year.

“In 2021, we sold 48 homes that were in the million-dollar price point. And then there were another 11 that were in the $2 million range,” she said. “ e number of sales will drop, but I just don’t see the prices dropping.” e data from the Northern Colorado multiple listing service recorded the city’s median price in January at $549,999, up about $11,000 from a year ago. In Larimer County, median sale prices increased 6.4% to $570,000, according to CAR data. Inventory has nearly doubled in a year, but it’s only taking two weeks longer to get a house sold in the county.

In Fort Collins, the median sales price in January was also higher than a year ago. ere are still multiple o ers going on, said Chris Hardy at Elevations Real Estate in Old Town Fort Collins. For one of his fellow agents, 8 out of 10 sales in January involved multiple o ers.

“It wasn’t like it was back in April or May when there were 15, 20 and 30 o ers on any home that came on the market. But there were at least two or more o ers on these homes,” Hardy said.

But Hardy added a caveat to the higher prices. Houses aren’t necessarily getting their full list price, especially those on the market since November. ose have likely reduced their price. And competition among buyers doesn’t mean houses are selling above the asking price.

“Last summer, you couldn’t buy anything inside the city limits of Fort Collins for under $500,000,” Hardy said. “ ere wasn’t anything and now that’s changed a little bit and so there are some homes in the mid-fours that get snapped up relatively quickly. In those highly desirable price points, there’s still quite a bit of activity.”

A busier spring?

Since the fourth quarter, the number of people hoping to get pre-quali ed for a mortgage has

U.S. Highway 85 & Weld County 22.5 for DUI and careless driving. She was held on bond at the Weld County Jail.

Police issued a summons to a Fort Lupton man, 50, in the 1000 block of Fulton Avenue for a building permit violation for failing to complete building permit inspections.

Feb. 9

Police arrested a Fort Lupton man, 30, in the 1400 block of Ninth Street on a Chaffee County warrant for failure to appear on charges of having contraband in jail charge and Weld County warrants for failure to appear on a traffic offense, and failure to comply with a bond condition on robbery and theft charges. He was held on bond at the Weld County Jail.

A Fort Lupton man, 32, was arrested at Ninth Street & Pacific Place on eluding, protection order violation and other traffic charges. He was held on bond at the Weld County Jail.

Feb. 10 increased 50%-60%, said Shawn Ostho , president of Bank of Colorado, which has branches all over the state and is headquartered in Fort Collins. ere are seasonal reasons for the uptick in this quarter and the overall number of loans is still lower than a year ago.

Two Fort Lupton teens 16 and 14 reported to police they were assaulted in the 200 block South McKinley Avenue. The case was under investigation.

Police arrested a Brighton man, 36, in the 100 block of Park Avenue for a protection order violation, child abuse, harassment and domestic violence. He was held on bond at the Weld County Jail.

“I think many people have come to the realization that we’re at kind of a new normal for mortgage rates and therefore they’re choosing to proceed with a home,” Ostho said. “We’ll see how strong the demand is this spring, but historically springtime has been a time when people are out looking for a new home and upgrading their house. We expect more activity this spring than we’ve seen in the last six months.”

Prospective buyers are not just gearing up to hunt for a house again; more seem to be opting for a di erent type of mortgage, an adjustablerate mortgage. ARMs at Bank of Colorado o er a lower interest rate of 5.875% in the rst ve years. Borrowers can re nance anytime if rates drop. Comparably, the bank’s 30-year rate is 6.375%, which includes 1% in mortgage points to reduce the interest over the life of the loan.

“Just trying to save a little bit of interest with the hope that rates might come back down, that’s the thinking here,” he said. “It gives them a chance to buy a home they can a ord.” e Fed-regulated interest rates are expected to decline since in ation is slowing. On Tuesday, the Consumer Price Index for January showed that it cost U.S. households 6.4% more to live, compared to a year ago. at was a smidge lower 6.5% in December and down from 9% in summer. e Fed has already backed o the higher rate increases, dropping to a quarter point hike on Feb. 1 from the several months of three-quarter point increases. is, of course, means in ation and interest rates are still rising. But Silverstein, president of Development Research Partners in Littleton, believes consumers are already getting used to it.

“Consumers will start to adapt, will start to expect those slightly higher interest rates given that we still have people moving into this state,” Silverstein said. “We still have a lot of folks that have put o housing purchases (and saying) ‘OK, a 5% to 6% mortgage rate is not outrageous. We just need to take it into consideration as we’re planning for future purchases.’ Consumers are still out there.” is story is from e Colorado Sun, a journalistowned news outlet based in Denver and covering the state. For more, and to support e Colorado Sun, visit coloradosun.com. e Colorado Sun is a partner in the Colorado News Conservancy, owner of Colorado Community Media.