Phil Castle, The Business Times

A slight year-over-year increase in real estate transactions in Mesa County offers what one industry executive hailed as “a little bit of good news” for the market.

But only two months into a new year, it’s still too early to tell what 2024 will hold, said Robert Bray, chief executive officer of Bray & Co. Real Estate based in Grand Junction.

The outlook depends in part on when and how much interest rates on mortgages relent, Bray said. But an increase in new home construction and slowing in home price appreciation offer encouragement.

Jenn Hardey, marketing director for Fidelity National Title in Colorado, said she expects 2024 will be a better year than 2023. “The market is looking healthier this year than it did last year.”

Hardey said 238 real estate transactions were reported in Mesa County in February, up 12.3 percent from the same month a year ago.

The total dollar volume of those transactions wasn’t available from the Mesa County Clerk and Recorder as of press time. Hardey said another program calculated total dollar volume at $114 million. That would constitute a 37.3 percent increase over the $83 million in dollar volume reported a year ago on the county system.

Hardey said several large transactions bolstered volume in February 2024, including the sale of the Holiday Inn on Crossroads Boulevard in Grand Junction for $10 million and seven apartment unit parcels for a total of $2.27 million.

Through the first two months of 2024, 446 transactions were reported, Hardey said, That’s up 4.7 percent from the same span in 2023.

According to numbers Bray & Co. tracks for the residential real estate market, 159 transactions worth a total of $63.5 million were reported in Mesa County in February. Compared to the same month a year ago, transactions increased 2.6 percent and dollar volume decreased 1.6 percent.

For the first two months of 2024, 279 transactions worth a total of nearly $112.5 million were reported. Compared to the same span in 2023, transactions decreased 8.5 percent and dollar volume declined 7.9 percent.

Bray said he was encouraged by the year-over-year increase in transactions in February, although sales levels remain well below those of two years ago.

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 with new mortgages at higher rates.

As of the end of February, there were 437 active residential listings in Mesa County, he said. That’s down 8.8 percent from a year ago.

More homes typically come on the market in spring, though, and Bray said he expects that trend to continue.

A total of 36 single-family building permits were issued in Mesa County in February, down from 46 the same month a year ago, he said. But through the first two months of 2024, 81 permits were issued. That’s up 11 percent compared to the same span in 2023.

Construction not only brings new homes to the market, but also contributes to the economy in terms of materials purchased and employment provided, Bray said. “That’s a good sign.”

The median price of homes sold in January and February rose 1.4 percent to $365,000, he said. But price appreciation has slowed compared to what were double-digit increases.

Looking ahead, Bray and Hardey said interest rate cuts by the Federal Reserve initially expected to come in May might not occur until later — the third or fourth quarter.

In the meantime, property foreclosure activity remains minimal in Mesa County, Hardey said 28 foreclosure filings and six foreclosure sales were reported during the first two months of 2024, below the same span in 2023.