Article from our local Grand Junction newspaper the Daily Sentinel
Real estate sales pick up momentum
More sold, at higher prices, than same period last year
The Mesa County real estate market continued to show signs of stabilizing and improving in the third quarter, as the number of real estate sales surged over the same time past year while sales prices flattened following a steady decline the last two years.
There were 789 sales of all types of real estate in July, August and September, a 28 percent increase over the same three months in 2010, according to data from Real Data LLC, a Grand Junction company that tracks all real-estate transactions in the county. Residential sales, which accounted for 85 percent of the transactions, climbed 29 percent over the third quarter of last year. September marked the 10th consecutive month that sales were up year-over-year.
Industry observers say while foreclosures still are dragging down prices, a combination of a drop in foreclosure rates, a steady climb in sales and less available inventory offers reasons to believe the beleaguered market is turning around.
“Right now, we’re really cautiously optimistic with what happened in the third quarter, and hopefully we saw bottom as far as the median price,” said Adam Hochevar, vice president of Real Data. “We hope that sales uptick continues.”
The 29 percent boost in residential sales for the third quarter was the highest year-over-year since the recession hit the Grand Valley. As a result, active listings of single family homes dropped from 1,384 at the end of June to 1,116 at the end of September, according to Real Data.
“Eating away at that inventory is going to be really big. The lower the inventory, the higher the price will go,” Hochevar said.
Ron Sechrist, a real estate broker with Bray Real Estate, said new home sales are part of that sales increase, a reversal from the last few years when new home construction and sales screeched to a halt. He said he recently sold two new homes and knows of a developer who has sold all homes in a still-under-construction, 25-lot subdivision.
“There is some movement of new product,” he said.
Home-sales prices remain at their lowest levels in years. The median price of $154,250 in the third quarter fell 16 percent from $184,000 in the third quarter of last year. But it held steady compared to the median price of $154,900 in the previous quarter, according to Real Data.
“It’s been a downward spiral, really, for the last couple of years,” Hochevar said. “This was the first time in a while we’ve seen the median level. I’m hoping it’s the bottom. I don’t know if that’s the case or not. It’s way too early to tell.”
The latest news on foreclosures, which drag down sales prices, is mixed. Foreclosure filings inched up from 257 in the second quarter to 297 in the third quarter, although that’s far less than the 451 filings in the third quarter of last year. The 222 foreclosure sales, meanwhile, were off 19 percent from last quarter and the third quarter of 2010, according to Real Data.
The bump in foreclosure filings means the county could see an increase in sales at the beginning of next year. But Hochevar said it would take a lot for foreclosure rates to approach the levels they reached at the end of 2009 and throughout 2010.
For more information, visit http://www.realdatallc.com.
Wow did this article make my day. I have felt the momentum but it is nice to have my feelings confirmed. I have had lots of interest in real estate. Leads are good and sales have been steady. Hope this is here to stay. This is unusual for this time of year. We usually start slowing down not picking up.
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