This is the February 2023 Real Estate Market Update for Loveland CO
There were 89 home sales in Loveland CO during January 2023, a gain of 3.5% from the 86 sold in December 2022, but a drop of 8.0% from the 111 sold in January 2022. Homes sold last month for an average of 95.5% of asking price, down a bit from the 98.8% in December 2022.
Home prices continued to rise in January 2023 (even after we corrected for an off-the-scale sale of a property for $16M! That isn’t included in these figures). The median price rose 10.2% from $549K in December 2022 to $605K in January 2023, while the average price rose 5.8% from $650K to $688K. Please note that this data only covers those specific homes sold during those two months.
Loveland CO home inventory declined in January 2023, down 26.5% to 151 homes for sale, from 191 in December 2022. The month’s supply of inventory fell to 1.7 months from 2.2 months in December, as sales rose and inventory fell.
Sales Price vs. List Price:
In January 2023, homes in Loveland sold for an average of 95.5% of list price, compared to an average of 98.8% in December 2022.
January 2023 saw an atypical start to the year for the Loveland CO housing market. The usual seasonal slowing, combined with economic uncertainty, rising interest rates and inflation nonetheless saw a rise in both sales and home sales.
While home prices have moderated somewhat in recent months, following last spring's wild ride, they may face inflationary pressures in coming months. These will be somewhat countered by higher interest rates that may depress demand, as well as a “wait and see” attitude by potential buyers concerned about the stability of the economy.
And, on the supply side of the equation, the inventory of available homes will also be subject to the same factors.
When we are comfortable about making general predictions about the future of the housing market, it is generally because we have a good recent data history, and some comfort about the direction of the economy, both in general and locally. While it’s always difficult after a seasonal slowdown, that’s especially true at this particular time.
The 2023 housing market is all going to depend on the economy. And we’re getting a lot of mixed messages about what’s coming:
Will the Federal Reserve raise interest rates further? How will that affect the economy? Will inflation be brought under control? What will happen as a result of recent massive layoffs in the tech sector? Will that spread? What will happen with wages? Will home prices (and rents) continue to rise, or will they begin to decline?
Right now, we don’t really know the answers to any of these questions, either at the national or at the local level. We can take some comfort from the underlying strength of the local economy, but we’re not immune from macroeconomic pressures. We’re just going to have to wait and see how it all plays out.
But stick with us – we’ll do our best to keep you informed of what’s happening and what it may mean. And we’re always available to answer your questions.