Sales:

Homes sales declined in September 2022 in Loveland CO. There were 153 homes sold, down 12.4% from the 172 sold in August 2022, and down 36.6% from the 204 sold in September 2021. Year-to-date sales of 1,477 homes are down 24.0% from 2021's 1,832 sold in the same period. Homes sold for an average of 99.5% of listing price last month.

Prices:

Home prices were mixed in September 2022. The median price of homes sold during the month fell to $542K from $574K in August, a decline of 5.9%, while the average price rose to $651K, up 2.4% from $636K. Imbalances between supply and demand are no longer the main driving force in the market, and upward price pressure has been moderated by market uncertainty.

Inventory:

Inventory rose in September 2022 in Loveland CO, with 255 homes for sale at the end of the month, up 2.4% from 249 at the end of August 2022. The Month's Supply of Inventory (MSI) rose to 1.7 months.

Sales Price vs. List Price:

This market indicator peaked in May 2022, has been declining since, but held steady, repeating August 2022's result of 99.5, as economic uncertainty, inventory gains and seasonal effects have countered the factors at work last spring.

Summary:

While it's tempting to say that the market has returned to normality, we doubt it's as simple as that. It's true that the current set of numbers would fit within the boundaries of what we would consider "normal", and are certainly better overall than last spring's frenzy, but the economic and social conditions that have brought us here are yet to really play out.

The factors at work in last spring's market were effectively shut down by the arrival of inflation, higher interest rates, and the fear of recession. Market uncertainty prevails as we have yet to identify how these will play out and be dealt with, and as we pointed out last month, we're still looking at more downside in the immediate future.

So as we move into the slower winter season, we believe that the real estate market will have little of substance to react to regarding these issues. It's likely to continue as it has during the last couple of months, needing considerably more clarity about the future before establishing a definite direction. And it's likely that direction will be dependent on how well our responses to the economic challenges we're facing are working.

As always, we'll keep 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.