Phil Castle, The Business Times
In Mesa County, real estate activity continues to grow, with sales exceeding $ 1 billion in the first half of 2021.
Robert Bray, for example, expects this trend to continue in the second half. “I still feel good for the rest of the year,” said Bray, CEO of Bray Real Estate in Grand Junction.
Housing stocks remain low, but new construction has intensified. Large commercial deals drive dollar volume growth
Annette Miller, Administrative Coordinator, Heritage Title Co. in Grand Junction, reported 676 real estate transactions totaling $ 255 million were registered in Mesa County in June. Compared to the same month last year, transactions increased 23.1 percent and dollar volume rose 60.4 percent.
Sixteen transactions totaled $ 39.4 million, Miller said. This included the sale of 1,460 acres of vacant land in Glade Park for $ 5.3 million, Mesa Pointe in Clifton for $ 5.2 million and a motel complex on Horizon Drive in Grand Junction for $ 3.95 million.
There were 3,062 real estate transactions totaling more than $ 1 billion in the first half of 2021, Miller said. Compared to the first half of 2020, transactions increased by 29.6 percent, while dollar volume increased by 48.3 percent.
Annual growth is greater, she said, in part due to the impact of the COVID-19 pandemic and related restrictions on real estate sales in 2020.
Residential property market data from Bray Real Estate saw 404 transactions totaling $ 152 million in June. Compared to the same month last year, transactions were down 1.2 percent, despite a 22.6 percent increase in dollar volume.
In the first half of 2021, there were 1,995 housing transactions totaling $ 713 million. Compared to the first half of 2020, transactions are up 13.7 percent and dollar volume jumped 37.1 percent.
Bray said the numbers would be higher if housing stocks were higher.
As of the end of June 2021, there were 293 active listings, down almost 41 percent from the same period last year. Bray said that, on average, more than 400 homes were listed in each of the past three months, but were quickly bought.
According to him, low supplies and high demand led to an increase in purchase prices. The median price of homes sold in the first half of 2021 rose 19.5 percent to $ 325,000.
Still, that’s less than the state and national median prices reported by the National Association of Realtors, he said.
The pace of home construction has increased, Bray said.
In June, 104 single-family home construction permits were issued in Mesa County. This is 70 percent more than in the same month a year ago. For the first half of 2021, 513 permits were issued. This is almost 51 percent more than in the first half of 2020.
Looking into the second half of 2021, Bray said he expects real estate and housing activity to continue to climb, possibly to record levels. “It will continue to be a good, strong year for real estate.”
Meanwhile, the activity of foreclosure on real estate continues to decline. Miller said there were 11 buyout bids and 13 foreclosure sales in the first half of 2021. Compared to the first half of 2020, the number of applications fell 84.1 percent and sales fell 31.6 percent.
Four resales of foreclosed properties in the first half of 2021 accounted for less than 1 percent of all transactions, part of the 10 percent threshold that Miller sees as indicative of a healthy market.