Phil Castle, The Business Times

Year-over-year increases in sales and dollar volume signal what could be a more robust real estate market in Mesa County.

“There’s a recovery in the works — possibly,” said Robert Bray, chief executive officer of Bray & Co. Real Estate based in Grand Junction. “There’s some action in the marketplace.”

While higher interest rates on mortgages hamper sales, demand remains strong, Bray said. Increases in existing residential inventory and new home construction offer more selection.

Jenn Hardey, marketing director for Fidelity National Title in Colorado, said 373 real estate transactions worth a total of $170 million were reported in Mesa County in April. Compared to the same month a year ago, transactions increased 16.6 percent and combined dollar volume rose 19.3 percent.

Hardey said several large transactions bolstered dollar volume in April 2024, including the sale of the Grand Villa assisted living facility for $5 million, a 572-acre parcel on Soaring Eagle Drive for $3.4 million and Freeway Bowl for $2.4 million.

Through the first four months of 2024, 1,100 transactions worth a collective $547 million were reported. Compared to the same span in 2023, transactions increased 2.4 percent and dollar volume rose 20.3 percent.

According to numbers Bray & Co. tracks for the residential real estate market, 261 transactions worth a total of more than $118.6 million were reported in Mesa County in April. Compared to the same month a year ago, transactions increased 14.5 percent and dollar volume rose 23 percent.

For the first four months of 2024, 761 transactions worth a total of nearly $323.3 million were reported. Compared to the same span in 2023, transactions decreased 4.2 percent and dollar volume edged down less than 1 percent.

Bray said April gains reduced what were in March double-digit year-over-year differences in year-to-date numbers for sales and dollar volume. “It gets your attention.”

Higher interest rates on mortgages continue to curtail homes sales, Bray said, in not only making financing more expensive, but also making homeowners otherwise interested in selling and buying something else reluctant to do so for fear of trading existing mortgages with low rates for new mortgages with higher rates.

But many transactions involve cash, he said. Other buyers make larger down payments and borrow less to reduce the effects of higher rates.

Increases in existing residential inventory and new home construction offer more selection, Bray said.

As of the end of April, there were 444 active listings in Mesa County. That’s up 8.3 percent from a year ago.

A total of 184 single-family building permits were issued in Mesa County through the first four months of 2024, an increase of 27.8 percent from the same span in 2023. “New construction is back.”

Construction not only brings more homes to the market, but also contributes to the local economy in terms of the jobs provided and materials purchased, he said.

Persistent demand continues to push home prices higher, Bray said. At $385,000, the median price of homes sold during the first four months of 2024 was 4.1 percent above the same span in 2023.

Looking ahead, Bray said he expects the Federal Reserve to lower interest rates by the end of the year. But homebuyers who wait for rates to drop could face higher prices.

Bray said he also expects the number of real estate transactions in 2024 to top 2023. “It’s been good, but I think we’ll see a more healthy real estate market.”

In the meantime, property foreclosure activity remains minimal in Mesa County. Hardey said 16 foreclosure filings and three foreclosure sales were reported in April. Through the first four months of 2024, 57 filings and 13 sales were reported.