Phil Castle, The Business Times

Higher interest rates and lower residential inventories continue to hamper real estates sales in Mesa County.

But Robert Bray finds encouragement in the latest numbers in an increase in new home construction. “New home construction is back. It’s really pretty strong” said Bray, chief executive officer of Bray & Co. Real Estate in Grand Junction.

Moreover, demand for housing remains strong, as does the Mesa County economy, Bray said. When interest rates on mortgages retreat, he expects sales to rebound.

Jenn Hardey, marketing director for Fidelity National Title in Colorado, said 281 real estate transactions worth a total of $164 million were reported in Mesa County in March. Compared to the same month a year ago, transactions decreased 14.3 percent, but dollar volume increased 20.6 percent.

Hardey said 15 large transactions worth a combined $65 million bolstered dollar volume in March 2024. They included the sale of two parcels of vacant land in Gateway to Mountain Island Ranch for a total of $36.6 million.

Through the first quarter of 2024, 727 transactions were reported, Hardey said. That’s down 3.6 percent from the first quarter of 2023.

According to numbers Bray & Co. tracks for the residential real estate market, 187 transactions worth a total of almost $79.4 million were reported in Mesa County in March. Compared to the same month a year ago, transactions decreased 28.3 percent and dollar volume declined 25.9 percent.

For the first quarter of 2024, 477 residential transactions worth a total of nearly $196.2 million were reported. Compared to the first quarter of 2023, transactions were down 15.7 percent and dollar volume fell 14.4 percent.

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

That’s also kept residential inventories low, he said. As of the end of March, there were 420 active residential listings in Mesa County, he said. That’s down slightly from the 433 active listings at this time last year.

The median price of homes sold in the first quarter of 2024 rose 1.6 percent on a year-over-year basis to $370,000. Still, price appreciation has slowed compared to what were double-digit increases.

Meanwhile, the pace of new home construction has picked up, he said. A total of 54 single-family building permits were issued in Mesa County in March, up from 31 for the same month a year ago. Through the first quarter of 2024, 135 permits were issued. That’s up 29.8 percent from the first quarter of 2023.

“That’s a dramatic movement There’s some very good news in that.”