Phil Castle, The Business Times

Increasing sales and dollar volume made 2017 the best year for the Mesa County real estate market in a decade. But 2018 could prove even better if trends continue.

“I don’t see anything changing that,” said Robert Bray, chief executive officer of Bray Real Estate in Grand Junction.

Annette Miller, senior vice president of Heritage Title Co. in Grand Junction, agreed. “ I would expect there are plenty of things that are providing for sustained growth in 2018.”

The outlook reflects improving confidence, a growing number of retirees and others moving to the Grand Valley and an increasingly diversified economy.

“I would say all of those things,” Miller said.

Real estate activity remained brisk through the end of 2017 with 425 transactions worth a combined $98.5 million reported in December, Miller said Compared to December 2016, transactions increased 18.7 percent and dollar volume rose 9.8 percent.

The December numbers brought year-end totals for 2017 to 5,331 transactions worth a total of nearly $1.3 billion, Miller said. Compared to 2016, transactions climbed 16.1 percent and dollar volume grew 18.3 percent.

The number of real estate sales during 2017 was the largest since 2007. The dollar volume was the biggest since 2008, Miller said.

Mesa County real estate activity peaked in 2006 with 7,210 transactions valued at a collective $1.72 billion. The market bottomed out in the bust that followed the boom in 2011 and has grown every year since.

Bray said 2017 was the best year for residential real estate sales in Mesa County since 2006 with 3,796 transactions worth a total of almost $922 million. Compared to 2016, transactions increased 13.8 percent and dollar volume swelled almost 20 percent.

The median sales price of residential transactions rose nearly 7.4 percent to $218,000, Bray said.

CoreLogic reported a 10.5 percent increase in the price of Grand Junction homes between November 2016 and November 2017, according to the latest analysis by the California research firm.

Bray attributed the robust real estate market in Mesa County to a combination of factors, including improved consumer confidence. “People are feeling better about the local economy.”

Demand has increased not only as existing residents have purchased first homes or moved up, but also as retirees and others have moved to the area, he said.

Miller said the real estate market has gone from a drag on the Mesa County economy to a driver. “It’s strong, continued growth.”

Miller also cited a growing population as well as an improving economy made more diverse by the contributions of Colorado Mesa University and outdoor recreation industry.

Bray and Miller both expect the real estate market to continue to grow in 2018.

Bray said 2018 could be the year when the residential market tops previous peaks for transactions and median price.

The comparatively lower price of housing and higher quality of life will attract more people from the Front Range and other areas. The passage in November of ballot measures to increase funding for schools and public safety will play a role in that process, he said.

Miller said she expects continued growth in the overall real estate market, although not yet to peak levels.

Some challenges remain, though, including low housing inventories and the prospect of rising interest rates.

As of Jan. 4, 682 homes were listed for sale in Mesa County, the lowest level in the eight years Bray Real Estate has tracked inventories, Bray said.

The pace of new home construction has picked up, though, and Bray said he expects the number of single family building permits issued in the county in 2017 to exceed 2016 by 40 percent or more.

Even as real estate activity increases in Mesa County, property foreclosure activity decreases.

Miller said 42 foreclosure filings and 18 foreclosure sales were reported in Mesa County during December. Compared to the same month last year, filings fell 19.2 percent and sales dropped 33.3 percent.

For all of 2017, 398 filings and 269 sales were reported — down 27.8 percent and 25.5 percent, respectively, from 2016.

The 222 resales of foreclosed properties in 2017 constituted 4.2 percent of all transactions — less than half the 10 percent threshold Miller considers indicative of a healthy market.