Sales:

Loveland home sales rose again in April 2017 to 220 sales, up from 195 in March 2017, an increase of 12.8%, and up from 183 sales in April 2016, an increase of 20.2%. We’re now seeing mid-summer sales levels at the beginning of spring, and the April sales figure is the second highest of the last three years - confirmation that buyer demand continues to be very high.

Prices:

Interestingly, the price of sold homes fell for the second month in a row - the median price dropped 5.7% in April 2017 to $336K from $355K in March 2017, and the average price dropped 6.2% to $371K from $394K in March 2017. We’re not reading much significance into this, however - it’s our opinion that these are just month-to-month variations in the prices of homes that actually sold. We expect the long-term trend line to continue showing increasing home values in coming months.

Inventory:

While inventory grew for the second month in a row, it only rose 1.9% to 317 homes for sale at the end of April 2017, up from 311 at the end of March. This small increase is clearly insufficient to meet demand, and the Month’s Supply of Inventory (MSI) dropped again, and now stands at 1.4 months, indicating a very strong seller’s market.

Summary:

Loveland’s market indicators are telling us an interesting story. Sales increases are almost always a good sign this time of year, but the combination of low inventory and falling prices is most likely an anomaly, since these two factors generally work in opposite directions. With the regional economy expected to continue to generate growth, it’s only reasonable to expect that we’ll be seeing home prices on the rise in coming months in the Loveland CO real estate market. And unless those price increases are effective at providing incentives for homeowners to offer more homes for sale, we can expect the market to remain unbalanced. We’re going to be watching inventory very carefully, and we’ll keep you updated.

If you would like to take a look at what's currently on the market, check out Loveland CO Homes for Sale. When you find a home you'd like to see in person, please give us a call - we would be happy to schedule a showing for you at your convenience.