This is the February 2023 Real Estate Market Update for Greeley CO
Sales of homes in Greeley CO declined in January 2023. 57 homes sold, a decline of 27.8% from the 79 homes sold in December 2022, and a decline of 24.0% from the 75 homes sold in January 2022. Homes sold for an average of 100.3% of listing price during the month, up from 98.7% in December 2022.
Home prices were mixed in January 2023. The median price rose slightly to $420K, up 0.5% from $418K in December 2022, while the average price fell 2.7% to $412 from the previous month’s $423K. These numbers reflect only those homes sold during the month and are within the range of normal monthly fluctuations for this data set.
Greeley CO inventory declined in January 2023. There were 88 homes available for sale at the end of the month, down 29.1% from the 124 on the market at the end of December 2022. The month’s supply of inventory (MSI) fell to 1.5 months from the previous month’s 1.6, as sales declined less than inventory.
Sales Price vs. List Price:
In January 2023, homes sold for an average of 100.3% of listing price, up from the previous month’s 98.7%.
January 2023 saw a slow start to the year for the Greeley CO housing market. A combination of typical seasonal slowing combined with economic uncertainty, rising interest rates and inflation dampened any strong enthusiasm for home sales.
While home prices have declined a bit in recent months, following last spring's wild ride, they may face inflationary pressures in coming months. These will be somewhat countered by higher interest rates that may depress demand, as well as a “wait and see” attitude by potential buyers concerned about the stability of the economy.
And, on the supply side of the equation, the inventory of available homes will also be subject to the same factors.
When we are comfortable about making general predictions about the future of the housing market, it is generally because we have a good recent data history, and some comfort about the direction of the economy, both in general and locally. While it’s always difficult after a seasonal slowdown, that’s especially true at this particular time.
The 2023 housing market is all going to depend on the economy. And we’re getting a lot of mixed messages about what’s coming:
Will the Federal Reserve raise interest rates further? How will that affect the economy? Will inflation be brought under control? What will happen as a result of recent massive layoffs in the tech sector? Will that spread? What will happen with wages? Will home prices (and rents) continue to rise, or will they begin to decline?
Right now, we don’t really know the answers to any of these questions, either at the national or at the local level. We can take some comfort from the underlying strength of the local economy, but we’re not immune from macroeconomic pressures. We’re just going to have to wait and see how it all plays out.
But stick with us – we’ll do our best to keep you informed of what’s happening and what it may mean. And we’re always available to answer your questions.