Phil Castle, The Business Times

Real estate activity decreased on a year-over-year basis in Mesa County even as uncertainty over interest rates, inflation and an impending presidential election increased.

“There’s all this uncertainty in everything,” said Darah Galvin, director of operations for Bray & Co. Real Estate based in Grand Junction.

The accumulative effects of that uncertainty have left buyers and sellers reluctant to make a move — even during what’s typically a busier season for real estate sales, Galvin said.

The situation isn’t likely to substantially change during the second half of 2024, she said.

Jenn Hardey, marketing director for Fidelity National Title in Colorado, said 322 real estate transactions worth a total of $147.7 million were reported in Mesa County in June. Compared to the same month last year, transactions decreased 25.1 percent and dollar volume fell 24.4 percent.

Hardey said 15 large transactions worth an accumulative $24.6 million bolstered dollar volume, including a retail building on Horizon Drive for more than $5 million, a nearly 6,000-square-foot home off South Broadway and Colorado Highway 340 for $2.9 million and three commercial buildings at the intersection of Patterson and 25 roads for a total of
$1.85 million.

For the first half of 2024, Hardey said 1,838 transactions worth a combined $884.7 million were reported. Compared to the first half of 2023, transactions were down 1.9 percent while higher prices drove dollar volume up 9.8 percent.

According to numbers Bray & Co. tracks for the residential market, 230 transactions worth a total of nearly $113.9 million were reported in June. Compared to the same month a year ago, transactions declined 27.9 percent and dollar volume dropped 20 percent.

For the first half of 2024, 1,287 residential transactions worth a total of nearly $582.3 million were reported. Compared to the first half of 2023, transactions decreased 8.4 percent and dollar volume fell 2.7 percent.

Higher interest rates on mortgages continue to curtail real estate activity in not only making financing more expensive for some buyers, but also making homeowners considering selling less reluctant to do so for fear of trading a mortgage with comparatively lower interest rates for a new mortgage with higher rates, Galvin said. Many homeowners opt to remodel rather than look for a different house.

The year-over-year slowing in sales also reflects uncertainty over not only interest rates, but also inflation and the presidential election, she said.

Home prices continue to escalate, however. The median price of homes sold in June rose nearly 4.3 percent to $427,500. The increase in the median price of homes sold during the first half of 2024 was smaller at 3.9 percent to $400,000.

Galvin attributed the increase in part to more sales of higher-priced homes, many of them cash transactions unaffected by higher interest rates.

At the same time, though, Galvin said she was encouraged by an increase in the inventory of existing homes. As of the end of June, there were 504 active listings in Mesa County. That’s up 16.1 percent from the 434 listings at the same time a year ago.

At the current pace of sales, there’s a more than two-month supply. Still, the inventory remains well below the six-month supply indicative of a more balanced market, she said.

Looking ahead to the remainder of the year, Galvin said the pace of real estate transactions could slow more as the election nears, but higher prices will bolster dollar volume.

Meanwhile, property foreclosure activity continues to decline in Mesa County. Hardey said 86 foreclosure filings and 16 sales were reported during the first half of 2024. Compared to the first half of 2023, filings fell 34.4 percent and sales decreased 23.8 percent.