This is the August 2022 Real Estate Market Update for Greeley CO
Greeley CO home sales were down in July 2022. There were 78 homes sold, a drop of 47.2% from the 145 sold in June 2022, and down 49.7% from the 155 sold in July 2021. Year-to-date, 840 homes have sold, a gain of 11.1% from 2021’s 840 homes sold in the same period. Homes sold for an average of 101.3% of listing price during July.
Home prices were mixed in July 2022, with the median price down to $450K from $455K in July 2022, a 1.1% drop, while the average price was up to $480K from $465K. 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 again saw a substantial gain in Greeley CO in July 2022, with 156 homes on the market at the end of the month, up 25.8% from June's 117 homes, reaching the highest level for the last 3 years. The Month’s Supply of Inventory (MSI) rose to 2.0 months.
Sales Price vs. List Price:
This market indicator peaked in March 2022, and has shown a decline since, dropping to 101.3% in July 2022, as economic uncertainty began to impact buyer demand and inventory increases provided less pressure for aggressive market strategies on both sides of the transaction. It appears the crazy times are over, at least for now.
It has been a wild and interesting ride we’ve been on, from a seller’s market that was unsustainable, to a mere momentary drive-by of what would be considered normal market conditions, and the into what appears to be emerging as a buyer’s market. But buyers will be constrained by rising interest rates and uncertainty about the economy, so we expect things to slow down quite a bit in coming months.
Our numbers in this report are based on closings in July. Those contracts were most likely written during May and June, and reflect market conditions at that time. But because we have a good view of the market now, we can anticipate (somewhat) what our numbers are going to look like in August, September, and October. What we’re seeing now are continued price drops, less urgency on the part of buyers, as well as more contract cancellations due to increasing loan costs.
A “normal” market, whatever that may turn out to be, isn’t going to manifest itself for a while. We’ll need to put inflation and recession fears behind us first, and until then, the market will mostly be in reactive mode, with challenges facing both sides of the transaction. 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.