A tighter inventory of homes for sale – especially those priced below $400,000 – has fueled a surge in new construction here in the Grand Valley.

A nine-year high in residential building permits is just one indicator of an improving housing market, the Sentinel’s Gabrielle Porter reported Monday.

The median home sales price was up 11 percent year over year from the previous January and there’s been an annual average increase in residential sales of 14 percent since 2010.

For a local economy still trying to find its footing in the wake of the Great Recession, these are positive signs. Understanding why real estate is enjoying an uptick in activity and value is a little tricky. Realtors and title companies can speculate, but the real estate market often reflects consumer perceptions rather than hard economic data.

Read more at The Grand Junction Daily Sentinel.