Sales of homes rose in June 2022 in Loveland CO. 229 homes sold, a gain of 5.0% from the 218 sold in May 2022, but a drop of 10.5% from the 253 sold in June 2021. Year-to-date sales of 990 homes were down 16.7% from from 2021’s 1156 sold in the same period. Homes sold for an average of 102.8% of listing price last month.
Home prices fell in May 2022. The median price dropped to $547K from $560K in June, down 2.4%, while the average price of $634K was down 6.2% from $673K. Recent inventory gains combined with a softening of demand may be easing upward price pressure on home prices.
For the fourth month running, inventory was up in June 2022, with 216 homes on the market at the end of the month, a gain of 20.7% from 179 at the end of May 2022, and the highest level since September 2020. The Month’s Supply of Inventory (MSI) rose to 0.9 months.
June's real estate statistics offer a strong suggestion that the market is heading back into calmer waters, at least for now. As homeowners have responded to rising prices by showing more willingness to offer their homes for sale, it's unlikely that we'll continue experiencing an unbalanced market defined by an unprecedented lack of inventory. But a return to "normality" is equally unlikely, as rapidly rising interest rates and economic uncertainty, along with other looming social and political concerns, have dampened demand.
While the statistics report what went on with homes that have closed on their contracts in June, those contracts were most likely written during April and May. We're also seeing what's happening now, and getting a glimpse of what our numbers are going to look like in August, September and October. It's too early to try to interpret those, but we are seeing price drops and a bit more conservatism on the part of buyers, as well as contract cancellations due to increasing loan costs.
It's going to be difficult for a while to define, much less achieve, whatever a new "balanced" market might be. 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.