Phil Castle, The Business Times

Real estate activity continues to slow in Mesa County even as interest rates on mortgages rise and concerns mount over the possibility of a recession.

The number of transactions and combined dollar volume of those deals fell in June behind the record-breaking pace set last year. Still, big transactions and higher prices pushed dollar volume for the first half of 2022 above that for the same span in 2021.

The market remains strong overall, said Annette Young, administrative coordinator at Heritage Title Co. in Grand Junction. “We can still have a very good year.”

Robert Bray, chief executive officer of Bray & Co. Real Estate in Grand Junction, said higher interest rates have exerted a more pronounced effect, although rates remain relatively low historically. The risk of a recession also has prompted some people to reconsider real estate purchases.

But homes priced and marketed right still sell quickly, Bray said.

Young said 498 real estate transactions worth a total of $211 million were reported in Mesa County in June. Compared to the same month last year, transactions dropped 26.3 percent and dollar volume declined 17.3 percent.

Just 19 transactions accounted for a total of $32 million in dollar volume, Young said. They included the sale of the Super 8 hotel in Grand Junction for $4 million and the former City Market building in downtown Grand Junction for $3.3 million. A Dairy Queen in Fruita sold for $2.1 million.

Through the first half of 2022, 2,693 transactions worth a combined $1.15 billion were reported, Young said. Compared to the first half of 2021, transactions fell 12 percent. But dollar volume increased 8.3 percent. 

While 110 transactions over $1 million each accounted for a total of $212 million in dollar volume for the first half of 2022, there were 64 transactions over $1 million worth a total of $138 million during the first half of 2021.

According to numbers Bray & Co. Real Estate tracks for the residential market in Mesa County, 320 transactions worth a collective $141.7 million were reported in June. Compared to the same month last year, transactions dropped 26.4 percent and dollar volume fell 12.2 percent.

Bray said the comparison isn’t fair given what was a frenzy in real estate activity last year as well as the difference in interest rates.

Through the first half of 2022, 1,761 residential real estate transactions worth a total of nearly $744.2 million were reported. Compared to the first half of 2021, transactions fell 13.6 percent, but dollar volume increased 2.4 percent.

Fewer sales and a seasonal increase bolstered residential inventory, Bray said. As of the end of June, there were 480 active listings in Mesa County. That’s an increase of 63.8 percent over active listings at the end of June last year.

Prices continue to rise. The median price of homes sold during the first half of 2022 rose 18.8 percent to $385,000. The increase was even more pronounced between June 2021 and June 2022 — 24 percent to $411,750.

Bray said the real estate market could soften as higher interest rates increase monthly mortgage payments, but he remains mostly optimistic.

Meanwhile, property foreclosure filings continue to increase in Mesa County, although not property foreclosure sales.

Young said 18 foreclosure filings and one sale were reported in June. That compares to three filings and one sale for the same month last year.

Through the first half of 2022, 137 filings and eight sales were reported, she said. For the first half of 2021, 11 filings and 13 sales were reported.

Young said filings have increased since the forbearance imposed as a result of the COVID-19 pandemic ended. But a lot of those filings are withdrawn, she said, as owners with equity sell before the foreclosure process is completed. 

Through the first half of 2022, there were no resales of foreclosed properties in Mesa County. Young considers resales at 10 percent or less of all transactions indicative of a healthy market.