Sales:

Home sales increased in May 2017, up 21.6% to 118 sales from 97 sales in April 2017, but were down 61.8% from 191 sales in May 2016. This is a nice gain, but overall sales levels remain well below previous years. The problems isn’t lack of buyer demand - that remains strong, but there just isn’t sufficient inventory to satisfy it.

Prices:

Home prices held steady in May 2017 - the median sales price gained 0.4% to $286K from $285K in April 2017, and the average price remained unchanged from April 2017 at $310K. These numbers reflect the prices of the homes that sold during the month, so have little significance as single data points. But the shortage of inventory combined with continuing high demand strongly suggests that home values are going to continue to increase.

Inventory:

Inventory posted a much needed gain in May 2017, rising to 106 homes for sale at the end of the month, a 23.3% increase from 86 in April 2017. But that gain was only enough to offset increased sales, so the Months Supply of Inventory (MSI) held at 0.9 months, indicating a continuation of the strong seller’s market.

Summary:

While sales and inventory both rose and prices were essentially unchanged, the real estate market remains constrained by a lack of homes for sale. As long as this persists and buyer demand remains strong, we can expect to see further increases in home prices. And those price increases will further depress the market by lessening the incentive for existing homeowners to offer their homes for sale, as their potential replacement homes will also be scarce and rising in price. New home construction is helping, but until there is a structural change in the market, we’re unlikely to see any real change in these conditions.

If you want to browse the current inventory, take a look at Homes for Sale in Greeley CO. When you find a home that interests you, please give us a call - we'd be happy to schedule a showing for you at your convenience.