Sales:

Homes sales increased in August 2022 in Loveland CO. There were 172 homes sold, a 6.1% increase from the 162 sold in July 2022, but down 36.6% from the 235 sold in August 2021. Year-to-date sales of 1,324 homes are down 22.9% from 2021's 1,628 sold in the same period. Homes sold for an average of 99.5% of listing price last month.

Prices:

Home prices fell in July 2022. The median price of homes sold during the month dropped to $574K from $593K in June, a drop of 3.3%, while the average price of $636K fell 8.2% from $688K. 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:

Inventory fell a bit in August 2022 in Loveland CO, with 249 homes for sale at the end of the month, down 3.2% from 257 at the end of July 2022. The Month's Supply of Inventory (MSI) fell to 1.4 months.

Sales Price vs. List Price:

This market indicator peaked in May 2022, has been declining since, but bounced up a bit in August 2022 to 99.5, Economic uncertainty, inventory gains and perhaps seasonal effects have now returned us to more normal levels.

Summary:

The big question, now that the market has returned to more familiar territory, is whether it's going to stay there for a while. There's no easy answer, and that's because of economic uncertainty's impact on perceived risk. There's a lot of potential downside, with inflation and recession fears and rising interest rates making home ownership a more expensive investment for a larger proportion of the potential buyer pool. That same uncertainty may also impact inventory again, as it dampens the attractions of potential sellers making major lifestyle changes.

We're also entering a traditionally slower season for real estate. But what has been traditional in the past is an unreliable guide to the future - too much has changed structurally in the economy, and we remain in largely uncharted territory.

Our guess is that the market will be a bit sluggish until we get into 2023 and we all get a better feel for where the economy is going. But there's little doubt that, from a market stability perspective, we're now in a better place than we were six months ago. There's also little doubt that whatever the new "normal" turns out to be, it's going to be different from the last one.

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.