Greeley CO home sales rose slightly in May 2021, with 108 homes sold, a gain of 0.9% from the 107 sold in April 2021, and up 28.5% from the 84 homes sold in May 2020, when we were first seeing pandemic effects take hold.

Prices:

Home prices rose again in May 2021, with the median price up 2.2% to $378K from $370K, while the average price was up 0.3% to $400K from $398K, during the same period. Low inventory and high demand are expected to drive prices higher in coming months.

Inventory:

After a year of almost continuous inventory declines, we’re finally seeing a welcome increase, which still is far from sufficient to meet market demand. There were 44 homes for sale at the end of the month, up from 32 at the end of February. The Month’s Supply of Inventory (MSI) rose to 0.4 months, or 12 days at current sales levels.

Summary:

It’s still too early to tell if the inventory gains of last month are a reversal of the trend, but there’s little question that a lack of sufficient homes to meet buyer demand - the main driver of our current market - will continue to impact the market in coming months. We simply don’t have a feel for the size of what pent-up demand might be, nor do we yet have a full understanding of how big the potential pool of sellers is. But we believe that the strong increase in home prices is a major factor holding potential sellers back from trading up. And as long as the imbalance between supply and demand remains strong, we’ll see home prices continuing to rise. But for now, it’s good to see inventory starting to move upward - that’s the direction that is needed to move our market back toward equilibrium. We’ll keep you updated as we watch how this plays out.