Phil Castle, The Business Times

An increase in real estate sales in July bodes well for a rebound in the Mesa County real estate market. So could what’s expected will be a decrease in mortgage interest rates.

“What a difference a month makes,” said Robert Bray, chief executive officer of Bray & Co. Real Estate Co. based in Grand Junction. “What a difference a rate change will make by year end.”

Jenn Hardey, marketing director for Fidelity National Title in Colorado, said 386 real estate transactions worth a total of $175 million were reported in Mesa County in July. Compared to the same month a year ago, transactions advanced 28.7 percent and dollar volume rose 33.8 percent.

Hardey said 18 transactions worth a combined $32.3 million bolstered dollar volume, including the sales of a total of 40 parcels in Mesa and Delta County for $4.97 million for the Mesa County properties, a multi-tenant complex near Independent Avenue and 25 1/2 Road in Grand Junction for $4.7 million and a shop and warehouse space off North Avenue in Grand Junction for $2.2 million.

Through the first seven months of 2024, 2,160 transactions worth a total of more than $1 billion were reported. Compared to the same span in 2023, transactions slipped six-tenths of a percent while dollar volume increased 13.2 percent.

According to numbers Bray & Co. tracks for the residential market, 269 transactions worth a total of more than $115 million were reported in July. Compared to the same month a year ago, transactions increased 21.7 percent and dollar volume rose 12.1 percent.

Through the first seven months of 2024, 1,572 transactions worth a total of nearly $704 million were reported. Compared to the same span in 2024, transactions were down 3.4 percent while dollar volume edged up three-tenths of a percent.

Bray said July is typically a slower month for real estate sales, but this market isn’t typical. While residential transactions in July 2024 exceeded those for the same month in 2023, the latest number remained below those for 2022 and 2021.

Nonetheless, Bray said he was encouraged the monthly year-over-year gain between 2023 and 2024 could signal a rebound.

An increase in the inventory of existing homes offers more selection to buyers, he said. As of the end of July, there were 545 active listings in Mesa County. That’s up 18.7 percent from the 459 listings at the same time last year.

At the latest pace of sales, the current inventory offers only a two-month supply — short of the five- to six-month supply indicative of a more typical market, he said.

The median price for homes sold in July decreased $8,000 to $400,000 compared to the same month a year ago. But the median price for homes sold through the first seven months of 2024 rose 2.7 percent over the same span in 2023, he said, a reflection of continued demand.

Higher interest rates on mortgages have curtailed homes sales in not only making financing more expensive, but also making homeowners otherwise interested in selling and buying something else more reluctant to do so for fear of trading an existing mortgage with comparatively low interest rates for a new mortgage with higher rates. Bray said he expects interest rates to relent by the end of the year. The Federal Reserve is expected to cut its key short-term interest rate in September.

Uncertainty persists, especially in advance of a presidential election. But Bray encouraged prospective homebuyers to connect with lenders now so they’re prepared to make offers when rates change.

Meanwhile, property foreclosure activity continues to decline. For the first seventh months of 2024, 106 foreclosure filings and 19 foreclosure sales were reported. Compared to the same span in 2023, filings were down 25.9 percent and sales down 32.1 percent.