Phil Castle, The Business Times

Real estate sales continue to lag on a year-over-year basis in Mesa County even as higher interest rates on mortgages increase the cost of financing.

“It really is the interest rate that’s played out,” said Robert Bray, chief executive officer of Bray & Co. Real Estate in Grand Junction.

Slowing in new home construction has contributed to low inventories, Bray added. “It’s still low for the marketplace.”

Annette Young, administrative coordinator at Heritage Title Co. in Grand Junction, said April sales were comparable to March and she doesn’t expect dramatic changes any time soon. “I think we’ll see this continue through the summer.”

Young said 320 real estate transactions worth a total of $143 million were reported in Mesa County in April. Compared to the same month and more robust activity last year, transactions declined 31.6 percent and dollar volume fell 27.4 percent.

Young said 16 large transactions accounted for a total of $30 million in sales in April 2023, bolstering dollar volume. They included the sale of an industrial shop on Railroad Avenue in Grand Junction for $2.75 million, a Freddy’s Frozen Custard & Steakburger restaurant in Clifton for nearly $3.1 million and vacant commercial property near Community Hospital in Grand Junction for $4.7 million.

For the first four months of 2023, 1,074 transactions worth a combined $455 million were reported. Compared to the same span in 2022, transactions decreased 35.9 percent and dollar volume fell 35.3 percent.

According to numbers Bray & Co. tracks for the residential real estate market, 214 transactions worth a total of more than $91.5 million were reported in April. Compared to the same month last year, transactions fell 32.9 percent and dollar volume 32.2 percent.

Through the first four months of 2023, 779 transactions worth a total of almost $320.4 million were reported. Compared to the same span in 2022, transactions declined 29.6 percent and dollar volume 29.9 percent.

Prices have edged down. The median price of homes sold in the first four months of 2023 slipped $4,450 and 1.1 percent to $370,000 compared the same span in 2022.

The slowing pace of sales also has bolstered residential inventories. At the end of April, there were 416 active listings. That’s up 49.1 percent from the same time last year, but still below what’s needed, Bray said.

New home construction continues to lag, Bray said, as a result of higher interest rates and economic uncertainty.

Bray said he expects an increase in real estate activity in the second half of 2023 after what likely will remain a sluggish first half.

Unlike past real estate slowdowns that coincided with dropping prices and rising unemployment rates, Bray said the Grand Valley economy remains strong overall with low jobless rates. Interest among prospective home buyers also remains strong, he said.

Property foreclosure activity remains low, Young said.

For April, 23 foreclosure filings and six foreclosure sales were reported in Mesa County. That compares to 24 filings and no sales for the same month a year ago.

For the first four months of 2023, 89 filings and 14 sales were reported. That compares to 104 filings and seven sales in the same span a year ago.