Home sales rose 3.8% in December, to 137 homes sold from 132 in November, 2013, and 65% from 83 homes sold in December, 2012. This was an unexpectedly strong result, and while it may have been partly caused by concern about rising interest rates, it most certainly also is evidence of continued strong demand in the Loveland real estate market.

Home prices also rose in December. The Median Price of homes sold grew 7.8% to $275K from $255K in November, 2013, and the Average Price was up 13.4% to $322K from $284K in October, 2013. These numbers only reflect the specific homes that were sold in December, yet they do indicate the strength of the upward price trend line that has been evident in Loveland throughout the year.

The Inventory of available homes declined 19.4% to 518 homes, down from 619 in November 2013, most likely as an effect of the holiday season. Inventory will need to increase strongly in early 2014 to meet what is expected to be continued high demand. With the jump in sales, the Months Supply of Inventory moved down to 4 months.

Summary:

Loveland closed out a year of strong recovery in the housing market with an excellent December, as all three graphs above show significant improvement over previous years. There is good reason to expect that 2014 will show similar gains, but there are a couple of factors that will need to watched carefully. The first is inventory - homes will have to be made available to meet demand, but rising prices may provide a good incentive for homeowners who have been waiting for more favorable conditions to offer their homes for sale. And interest rates may begin rising from their historic lows, which could dampen demand a bit. We’ll be watching all of this carefully.

If you would like to take a look at the homes for sale now in Loveland, check out the Available Inventory. If you find something you'd like to take a look at, please give us a call - we'd be pleased to schedule a showing at your convenience.