Sales:

Sales of homes in Greeley CO during 2022 totaled 1,345, a decline of 1.9% from the 1,370 homes sold the previous year.

Prices:

Home prices ended 2022 slightly down from where they started, although they reached higher peaks at times during the year. The median price began the year at $434K, peaked at $460K in May 2022, and finished the year at $418K, a net decrease of 2.7%. The average price was $445K in January 2022, rose to a high of $480K in July 2022, and ended the year at $423K, down 2.7%.

Inventory:

Greeley CO inventory grew significantly in 2022. There were 63 homes for sale in January 2022, and, after reaching a high of 168 in July 2022, there were 124 homes on the market in December 2022.

Sales Price vs. List Price:

In January 2022, homes were selling for an average of 100.5% of list price. During the year, that rose to a high of 102.6%, before ending the year in December 2022 at a more normal rate of 98.7%.

Summary:

2022 was a wild ride for the housing market. The clearest picture probably comes from the comparison of sale prices to listing prices. We began the year with homes selling at a low of around 100% of asking price, saw that rise to a high of 105.5%, and ended at around 98%.

Beginning with high housing demand and inventories of available homes at historically low levels, the ensuing strong seller’s market led to rapidly rising home prices as buyers competed for the few available homes.

At the same time that increasing prices incentivized more homeowners to put their homes up for sale, demand began cooling. This was partly fueled by the difficulties faced by potential buyers attempting to negotiate a very competitive market, as well as concerns about the economy and rising interest rates. By mid-summer, the market had made a U-turn, with inventories more than sufficient to meet diminished interest from buyers.

And by the end of the year, the market had gone from a wild ride to a slow one. Fears of recession, continuing rises in the interest rate, and the usual seasonal slowing at this time of the year have lowered activity considerably, as the graphs above show.

So now, as we look forward to a new year, we find a continuing unease about the state of the economy. Will there be a strong recession? Will interest rates continue to rise? What will happen to the jobs market? These and other concerns have significant impacts on what may happen. Currently, there just isn’t enough information to make predictions. Looking at the immediate preceding months isn’t much help – seasonal slowing effects cloud the picture. And while it appears that there are more interest rate increases in store, and a strengthening of recession effects, the economy itself has been stronger than expected.

Hopefully, we’ll get a better feel for the direction of the market as we get more information from the coming month’s real estate activity as well as the financial impacts from coming economic decisions. We’ll do our best to keep you informed.