Phil Castle, The Business Times

Mesa County real estate activity continues to lag behind last year as a combination of higher prices and interest rates and lower inventories slow sales.

But the gap is expected to narrow in part because of the comparison to slowing during the second half of 2022. Moreover, demand persists in the residential market.

“There is still just a lot of strong buyer interest out there,” said Robert Bray, chief executive officer of Bray & Co. Real Estate based in Grand Junction.

Annette Young, administrative coordinator at Heritage Title Co. in Grand Junction, said 300 real estate transactions worth a total of $131 million were reported in Mesa County in July. Compared to the same month last year, transactions fell 24.2 percent and dollar volume decreased 22.9 percent.

Ten large transactions worth a combined $14 million bolstered dollar volume. The top three transactions involved residential properties, Young said, including the sales of a luxury residence on
2 acres for $2.95 million, a luxury home on 1.7 acres for $2.27 million and two residences on nearly 10 acres for $1.35 million.

Through the first seven months of 2023, 2,174 transactions worth a total of $937 million were reported, Young said. Compared to the same span in 2022, transactions declined 29.6 percent and dollar volume fell 29.1 percent.

Young said a combination of higher prices and mortgage interest rates have made homes too costly for some buyers. Others who own homes and might be in the market for something different are shackled by the “golden handcuffs” of mortgages with interest rates at half of what new loans feature, she said.

Low residential inventories also affect sales, Young said. “There’s less filling that pipeline.”

According to numbers Bray & Co. tracks for the residential market in Mesa County, 214 transactions worth a total of almost $100 million were reported in July. Compared to the same month a year ago, transactions fell 27.7 percent and dollar volume declined 23.3 percent.

Through the first seven months of 2023, 1,614 transactions worth a total of more than $696 million were reported. Compared to the same span in 2022, transactions decreased 22.1 percent and dollar volume fell 21 percent.

Bray said the declines were noticeable. But he expects the gap to narrow in part because of the comparison to what was slower activity in the second half of 2022.

The median price of homes sold during the first seven months of 2022 increased to $389,250. But the 1.1 percent year over year gain was smaller than what have been double-digit gains, he said.

For July, 98.4 percent of homes sold received the list price. Bray said asking prices are coming down and some list prices are reduced.

Homes remain on the market longer before sales —  through the first seven months of 2023, an average of 61 days. That’s up from 45 days for the same span in 2022.

Residential inventory dropped at the end of July with 456 active listings in Mesa County. That’s down 19.4 percent from this time last year.

The pace of new home construction also has slowed. Through the first seven months of 2023, 264 permits were issued. That’s a decline of 46.8 percent from the same span in 2022.

Along with slowing in the residential market, Bray said the commercial real estate market has softened with less investor activity.

Property foreclosure activity constitutes something of a mixed bag, Young said. Through the first seven months of 2023, 142 filings and 28 sales were reported in Mesa County. Compared to the same span in 2022, filings declined as sales increased. The overall numbers remain low, however, she said.