Fort Collins Condo Prices Fell This Fall. Why Isn't Owning One Getting Cheaper?

"Affordability is not improving in the attached market, another indicator that the condo and townhome market is continuing to get beat up," Fort Collins-area Realtor Jared Reimer said in the Colorado Association of Realtors' September 2026 market report. He said it in the same paragraph that reported the Fort Collins condo and townhome median fell 11.7% year over year in September, to $402,500.

So prices dropped by double digits and affordability still got worse. Both are true because what a Fort Collins condo costs to own is now set mostly by the HOA's insurance bill and the rules lenders use to judge the HOA. The list price matters less. Those costs and rules have moved in one direction all year, and one more lender change takes effect on January 4, 2027.

The Drop Says More About 2025 Than About 2026

Reimer gave the context himself. He said September 2025 "was an anomalous peak in values," so a September 2026 figure compared against it was always going to look steep. Attached sales in Fort Collins are a small pool, and a handful of closings can swing a monthly median a long way. Here is how the attached numbers look depending on the window:

• August 2026, Fort Collins attached median: $367,500, up 5.6% year over year, per IRES MLS data reported by BizWest.
• September 2026, Fort Collins attached median: $402,500, down 11.7%, per CAR.
• 2026 through late September, Fort Collins attached median: $385,000, down 3.5% from the prior year, with sales down 1%, per BizWest.
• September 2025, Larimer County attached median: $426,750, a countywide figure that shows how high last year's comparison point was.

One month the median was up, the next it was down 11.7%, and the year-to-date figure is down 3.5%. Over the year, the decline is modest. For comparison, the single-family median in Fort Collins in September 2026 was $590,000, down 1.7%, with 73 days on market and 3.1 months of supply. Reimer also said single-family affordability "is improving." Single-family affordability is getting better and attached affordability is not, even though attached prices fell faster. That gap comes from the monthly costs the median never shows.

The Second Bill: What the HOA Pays to Insure the Building

Condo and townhome owners pay for the association's master insurance policy through their dues. They can also be billed directly through a loss assessment for costs the policy doesn't cover, including the deductible and repair shortfalls, as the Colorado Division of Insurance's HOA toolkit explains.

That policy has become much more expensive in Larimer County. A study the state commissioned under HB24-1108 was released in January 2026. It found that in-force premiums on HOA properties in Larimer County went from $5,331,654 on January 1, 2020, to $12,971,479 on December 31, 2024. That is a 143% increase. Over the same period, the number of policies rose only 19%, from 695 to 824. So most of that growth came from higher prices on existing coverage, with relatively little from new buildings joining the pool. In ZIP 80525 in southeast Fort Collins, HOA premiums went from $1,641,701 to $2,989,051 over the same period. Statewide, the full report found HOA premiums rose 115%, to $208 million in 2024.

The Division of Insurance says it is aware of master-policy costs rising 200% to 500% for some associations, and of deductibles climbing from 5% to 10% of value. A percentage deductible on a whole complex can mean a very large bill. The Denver Post reported that after an August 2024 hailstorm, a 150-home townhome community in Colorado Springs invoiced each household $20,752 to cover a deductible of about $3.1 million, or 10% of the community's value. Residents disputed the assessment in court. In Aurora, The Colorado Sun reported that property insurance tripled in 2024 at the 46-unit Meadow Hills townhome community and monthly HOA fees rose more than 60%. Neither community is in Northern Colorado. Both show how these costs reach owners.

Teresa Lomax, chair of BOLO Realtors, described what this does to the comparison buyers are making. "The cost of insurance is high for everybody but specifically in HOA-driven communities they are seeing dues go up dramatically," she told BizWest, adding that this can push overall mortgage costs closer to those of single-family homes. CAR's report says the same about the Denver metro, citing "rising HOA fees, insurance costs, and affordability challenges" as the weight on attached housing there.

Your Lender Underwrites the HOA Along With You

Higher dues do more than raise the monthly payment. Under Fannie Mae's Selling Guide, association dues and special assessments count toward the monthly housing expense a lender uses to calculate debt-to-income. A $50,000 cut in price can be offset by a dues increase that eats up the same room in your loan approval.

Fannie Mae also reviews the building itself, and those rules changed in 2026. Lender Letter LL-2026-03, dated March 18, 2026, set out the changes below:

Freddie Mac's Bulletin 2026-C makes the same jump from 10% to 15% starting January 4, 2027. It notes that underfunded reserves go hand in hand with critical repairs and unexpected special or higher regular assessments. Fannie's guide also lists projects needing critical repairs or carrying significant deferred maintenance among those it won't buy loans in.

The retired investor cap loosens one rule for investor loans. The new reserve minimum tightens the test for every conventional buyer in a project reviewed under Full Review.

Waiting for 2027 Brings Its Own Rules

Sellers have responded by holding back. In September 2026, Fort Collins attached new listings fell nearly 31% year over year and active listings fell 10.6%. Reimer put it this way: "many sellers are punting and hoping (or praying) for better conditions in 2027."

Starting January 4, 2027, conventional buyers of units in Full Review projects will need the association's budget to set aside at least 15% for reserves, up from 10%. An association already budgeting at that level won't notice. One budgeting at 10% has two ways to meet it. It can raise dues, which shrinks every buyer's debt-to-income room, or its units can fall outside conventional financing. A seller waiting for better conditions in 2027 may find that the condition that changed most is the lender test the building has to pass.

New communities face their own requirement. Under Colorado's HB26-1099, effective August 12, 2026, the developer of a new planned community or condominium must fund an independent reserve study before turning control over to the association. The study estimates common-element costs over 30 years. The association must then give owners the most recent study within 90 days after turnover and within 90 days after each fiscal year. That gives buyers of newer attached homes a document worth asking for.

What to Request Before You Offer on a Fort Collins Condo or Townhome

1. The current budget and the reserve line. Divide the reserve allocation by annual assessment income and compare the result with the 15% minimum arriving January 4, 2027.
2. The latest reserve study. Check whether the budget funds the study's highest recommended level, which Fannie Mae has required since August 3, 2026.
3. The master insurance declarations. Look at the deductible, especially whether it is a percentage of value or a per-unit figure, and compare it with the $50,000 per-unit cap.
4. Dues history and any pending assessments. A recent jump points to a past repricing of the insurance policy. A pending vote points to one that's coming.
5. Your own unit policy quote. When the master policy has a per-unit deductible, Fannie requires owner coverage at least equal to that deductible.
6. Your lender's read on the project. Ask early whether the complex qualifies under Full Review or a waiver.

This is general information and not legal, tax or financial advice. Confirm your situation with your lender, an insurance professional or an attorney before you act on any of these rules.

Buyers have room to ask for more than a lower price this fall. BOLO's Lomax told BizWest the average concession is around $12,000.

If you're weighing a Fort Collins condo against a single-family home, or deciding whether to list your unit before January 4, Bison Real Estate Group can go through the HOA budget, reserve study and insurance terms with you before you price an offer or a listing. Let's Connect. Get Your Home Valuation and see where your unit stands under the 2027 rules.