Sales:
There were 172 homes sold in Loveland CO in December 2021, down 7.6% from the 185 homes sold in November 2021, but up 1.8% from the 169 homes sold in December 2020. 2021 total sales of 2,394 homes were down 0.8% from 2020’s total sales of 2,410 homes.
Prices:
Home prices were mixed in December 2021. The median price gained 1.6% to $523K from November’s $515K, while the average price fell to $593K from $608K, a drop of 2.5%. For the year 2021, the median price rose 18.3% and the average price rose 13.4%
Inventory:
Inventory fell sharply in December 2021, with 65 homes on the market at the end of the month, a decline of 58.5% from 103 at the end of November 2021. The Month’s Supply of Inventory (MSI) declined to 0.4 months, or about 12 days.
Summary:
Pandemic effects, economic uncertainty and seasonal slowing have all combined to create a uniquely weird real estate market. Let’s begin with the fact that the entire market is functioning well below what would be equilibrium for an area of this size and population. While we’ve never seen the inventory of homes available for sale anywhere near the current levels, low inventory is just one of the factors at work here. We’re also seeing a dramatic shrinking of the buyer pool, as the laws of supply and demand raise home prices, and stiff competition limits participation to buyers able to make very attractive offers. While home prices will most likely not decline with anything short of widespread economic difficulty, it’s probably going to take time and a sustained and broad recovery to bring the market back to anything approaching long-term stability. We’ll likely be seeing current conditions extended well into 2022.
