Fort Collins Real Estate After Covid

Where is the Fort Collins Real Estate Market Headed After Covid

Fort Collins Real Estate

It’s All About Perspective

All change has oppportunity attached! With interest rates rising, for the first time in what seems like forever, and the chance for the housing market to get into more of a “stable state”, some outliers may be worth investigating. This brings us to the idea of vacation homes with second mortgages.

The Federal Reserve is raising interest rates. What this means, according to most economists is we are heading not just into a recession, but likely stagflation. Stagflation is primarily characterized by economic slowdown and high interest rates. Surging inflation rates to levels not seen since the 1980’s. I say opportunity!

What is the stock market going to do? Some say it will rise, some say it will continue to fall, some say to stick it out for the long run – who knows?

What should you do? Focus on a niche! In the real estate market, the supply and demand should start to “level out”. Looking for opportunities in the market might start with a couple of things – vacation homes and second mortgages with variable rates. When the Fed increases interest rates, lenders will also increase the interest rate on variable-rate loans.

The increase may not happen right away, depending on the loan’s terms and conditions – maybe it changes annually, or monthly, or quarterly.

An increase in your payment is never something you want to be surprised about! This leads to the possibility of overextended homeowners. Things might’ve been “just fine” with a first mortgage at 3.5% and a second mortgage at 5% … but, if that second mortgage now starts to jump to 6.5%, to 7.5%, etc., then things can get might feel a little tight. Now, attach that second mortgage to a vacation home or second home.

This is where one needs to take a look at “tightening the financial belt” perhaps.


The pandemic saw employees able to work from home, from anywhere – and a mortgage market that had extremely low interest rates – investing money wasn’t getting any return, and some people turned to real estate. But, with uncertainty, especially in the way of monies, a second home isn’t a necessity. It might be time to consider what the inputs/carrying costs are (taxes, insurance, payments, upkeep, usage) and put pen to paper to see if this is the best use of current resources.

Look For Opportunity in Fort Collins Real Estate After Covid

Look for possible overextended sellers – maybe they are not going to be able to keep up with the terms of a variable rate loan, as well as the general increases in home carrying costs?

Today’s housing market isn’t like it was with the “crash” in 2008 – that one was caused by cheap debt and shady lending practices with people in debt beyond what they could afford. The Fed is in search of the elusive neutral rate – an interest rate level that neither spurs nor restricts economic growth. A status quo.

Fort Collins Real Estate Market

Let’s look at home prices during times like these – in the past four out of six recessions home prices have actually appreciated! Prices dipped about 20% in 2008 and only about 2% in the early 90’s.

It’s all about diligence, research, information, and making on-time decisions … you can buy, sell, invest, flip, and enjoy this Fort Collins Real Estate market!

Biggest Takeaway 

Verify your debt, the terms, and how you will be able to manage same with a recession/stagflation/etc.
BIGGEST opportunity in the Fort Collins real estate market – research potential buyers and sellers – the housing prices are going to stabilize, making it more of a 50-50 seller-buyer market. Some property owners are going to reevaluate their real estate investment(s) and possibly sell second homes where the pen & paper do not match their initial financial goals. Buyers in this market may want to finalize a move to a more “vacation home” setting and there you go, a seller and a buyer!

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Allison Klein - Realtor 2112 Brookwood Dr Fort Collins, CO 80525 Call or Text 970-818-6668
Allison Klein - Realtor