Sales:

Sales of Homes in Greeley CO rose in August 2022. 122 homes sold, a gain of 56.4% from the 78 sold in July 2022, but were down 8.1% from the 132 sold in August 2021. Year-to-date, 962 homes have sold, a gain of 8.3% from 2021's 888 homes sold in the same period. Homes sold for an average of 100.5% of listing price during August.

Prices:

Home prices were mixed in August 2022, with the median price slightly up to $451K from $450K in July 2022, while the average price was down 5.5% to $455K from $480K. Current market conditions suggest that recent inventory gains combined with a softening of demand may be easing upward price pressure on home prices somewhat as we move forward.

Inventory:

Inventory has been rising since March 2022 in Greeley CO, and reached its highest point of the last 3 years in August with 167 homes on the market, a gain of 7.1% over the 156 for sale in July 2022. The Month's Supply of Inventory (MSI) fell to 1.4 months.

Sales Price vs. List Price:

This market indicator peaked in March 2022, and has shown a gradual decline since, dropping to 100.5% in August 2022. Economic uncertainty, inventory gains and perhaps seasonal effects have now returned us to more normal levels.

Summary:

The big question, now that the market has returned to more familiar territory, is whether it's going to stay there for a while. There's no easy answer, and that's because of economic uncertainty's impact on perceived risk. There's a lot of potential downside, with inflation and recession fears and rising interest rates making home ownership a more expensive investment for a larger proportion of the potential buyer pool. That same uncertainty may also impact inventory again, as it dampens the attractions of potential sellers making major lifestyle changes.

We're also entering a traditionally slower season for real estate. But what has been traditional in the past is an unreliable guide to the future - too much has changed structurally in the economy, and we remain in largely uncharted territory.

Our guess is that the market will be a bit sluggish until we get into 2023 and we all get a better feel for where the economy is going. But there's little doubt that, from a market stability perspective, we're now in a better place than we were six months ago. There's also little doubt that whatever the new "normal" turns out to be, it's going to be different from the last one.

We'll be watching closely and keeping you up to date here, but if you have questions or just want to talk about the real estate market, please don't hesitate to give us a call.