This is the August 2022 Real Estate Market Update for Loveland CO
Homes sales fell in July 2022 in Loveland CO. 162 homes sold, down 41.5% from the 229 sold in June 2022, and down 46.3% from the 237 sold in July 2021. Year-to-date sales of 1,152 homes are down 20.9% from 2021’s 1,393 sold in the same period. Homes sold for an average of 98.7% of listing price last month.
Home prices rose in July 2022. The median price rose to $593K from $547K in June, up 8.4%, while the average price of $688K gained 8.5% from $634K. 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.
For the fifth month running, inventory increased in June 2022, with 257 homes for sale at the end of the month, up 19.0% from 218 at the end of June 2022, and the highest level since October 2020. The Month’s Supply of Inventory (MSI) rose to 1.6 months.
Sales Price vs. List Price:
This market indicator peaked in May 2022, and has shown a steady decline since, dropping below 100% in July 2022, as economic uncertainty impacted buyer demand and inventory increases provided less pressure for aggressive market strategies on both sides of the transaction. It appears the crazy times are over, at least for now.
It has been a wild and interesting ride we’ve been on, from a seller’s market that was unsustainable, to a mere momentary drive-by of what would be considered normal market conditions, and the into what appears to be emerging as a buyer’s market. But buyers will be constrained by rising interest rates and uncertainty about the economy, so we expect things to slow down quite a bit in coming months.
Our numbers in this report are based on closings in July. Those contracts were most likely written during May and June, and reflect market conditions at that time. But because we have a good view of the market now, we can anticipate (somewhat) what our numbers are going to look like in August, September, and October. What we’re seeing now are continued price drops, less urgency on the part of buyers, as well as more contract cancellations due to increasing loan costs.
A “normal” market, whatever that may turn out to be, isn’t going to manifest itself for a while. We’ll need to put inflation and recession fears behind us first, and until then, the market will mostly be in reactive mode, with challenges facing both sides of the transaction. 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.