Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

What Happened in 2017? – Recap of the Montrose Housing Market

2017 Recap of the Montrose Housing Market

The Montrose Colorado real estate market held par with the previous 4 years of growth through 2017. The market experienced price gains of approximately 7% over the calendar year, keeping up with the previous annual gains of 7%, median year-over-year, since 2012. In total, 742 homes sold in 2017.

 

Homes sold according to price range in Montrose ColoradoThe hot spot in the Montrose market continues to reside under $300,000; 74% of sales occurred in this price range, keeping pace with 2016. Prices jumped 7.3% in sales under $300,000, while the number of homes sold was relatively flat in comparison to 2016. An interesting note to mention: paralleling 2016 to 2017, the $0-200,000 market saw a 22% drop in the number of homes sold, while the $200,000-300,000 felt a 14% increase in units sold.

 

The upper-end real estate market is still soft, but a few trends are worth mentioning. The $500,000-600,000 range had 45% more sales in 2017, while the $600,000 plus market saw a 29% decrease in homes sold. The $400,000-$500,000 market was quite soft this year due to a flood of inventory in this price range. Inventory levels/saturation rates were over a year in this range as well.

 

Moving Forward – 2018

 

City and county building permits Montrose ColoradoThe real estate market, continuing momentum from the busy fall, started strong going into the New Year. A spike in December activity (which is typically unheard of) is translating into a robust January. Lack of housing inventory is an obvious concern for the real estate market moving into 2018. The 3.4-month supply inventory of existing homes in November was a record low nationally.

Affordability is still a concern as prices are driven up by strong demand with wage growth lagging behind. Nationally, even as new-construction numbers are trending upward toward pre-recession levels, “demand is expected to continue to outpace supply until 2023, even after demand has reached its peak” (A Bullish Year For New Home Building).

 

Montrose Colorado city and county building permit valuationFigures 5 and 6 illustrate building permits and building permit valuation in Montrose. Total building permits are up to 158 from 136 the previous year. Total building permit valuation has increased to $14,951,843 from $9,410,657. Single family home permits are up to 50 from 33, and single family home permit valuation has increased to $8,739,080 from $5,477,563.

 

 

 

 

Thinking about Buying or Selling? Call or Text: 970-417-9375

 

Copyright 2017 Keller Williams Colorado West Realty, LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal opportunity housing provider. Each office is independently owned and operated. For sale by owner data not included in research findings. Sales data reflects sales from homes not limited to the Atha Team LLC. This information was gathered from Keller Williams, The National Association of Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, CMU Department of Business and Economics, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2017. All Rights Reserved.

 

 

 

 

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

December 2017 – Montrose Colorado Real Estate Market Update

Fewer Foreclosures and a Strong Sellers Market – Seize the Market!

Local Real Estate Indicators

 

Montrose Colorado City and County Building PermitsThe local real estate market is performing at a solid pace.  It is not as strong as the Mesa County or general Colorado market but population and labor force growth prohibit a large expansion of housing in Montrose.  The average number of days on the market for homes has fallen from 70 days to 53 days, indicating a strong seller’s market.  Home values are up, with the median home price for Montrose County increasing to $219,000 from $215,000, or an increase of 1.9%.  Foreclosure filings have fallen from 18 to 16, Single family home sales are up 5.1%.  Of the homes that sold in the 3rd quarter, 30.6% were cash transactions.

Montrose Colorado Foreclosure Filings and SalesThe best news for Montrose County real estate is in the building permit and building valuation.   Figures 4 and 5 illustrate building permits and building permit valuation.  Total building permits are up 180 from 106 the previous year.  Total building permit valuation has almost doubled from $12,499,616 to $24,065,436.  Single family home permits are up 75 from 35, and single-family home permit valuation has more than doubled to $12,257,860 from $5,687,202.

National Market

The national real estate market has some backlash for buyers purchasing with a mortgage. 28.8% of U.S. home sales this year have been cash transactions, up from 28.6% last year. Why does that make it difficult for buyers with a mortgage? Sellers are more attracted to cash transactions for quicker closings and lower risks. However, most buyers purchasing with a mortgage are aware of the many cash buyers and are willing to offer thousands above asking price to get in the game. Being pre-approved and doing your homework upfront can alleviate some time consuming tasks and therefore help level the playing field for mortgage buyers.

 

Thinking about Buying or Selling? Call or Text: 970-417-9375

 

Copyright 2017 Keller Williams Colorado West Realty, LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal opportunity housing provider. Each office is independently owned and operated. For sale by owner data not included in research findings. Sales data reflects sales from homes not limited to the Atha Team LLC. This information was gathered from Keller Williams, The National Association of Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2017. All Rights Reserved.

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

November 2017 – Montrose Colorado Real Estate Market Update

Bidding Wars Make Their Way to the Western Slope

2445 Shavano Cir. Montrose, CO 81401 - Atha Team Real Estate Golf Property for Sale2017 has been quite the year for real estate in Montrose Colorado. Bidding wars finally made their way to the Western Slope from the Colorado Front Range; the Atha Team experienced an abundance of bidding wars on homes that were listed by Sellers working with the Atha Team as well as buyers on the purchasing side. The bulk of this auction type activity occurred bellow the $200,000 price range. The Montrose market has shifted indeed, to a hyper sellers market under $250,000. With that said, homes that are overpriced are still over looked by distinguishing buyers.

A few people have recently asked, “Will this type of market activity continue?” Others have asked, “Are we in a real estate bubble like 2007?” The market activity, when speaking of price increases, may continue. The sustained equity gains in the market depend on inflation and wage growth eventually matching housing costs. Currently, housing costs are outpacing wage growth and inflation of other goods such as food and automobiles due to lack of housing supply. If new housing construction starts continue to lag behind consumer demand, and prices continue to escalate, affordability may act as a ceiling to the impressive gains experienced over the last 5 years.

Aerial View 18858 6495 Rd Montrose Colorado 81403 - Atha Team House For SaleReal estate bubbles, as with any asset bubble, are typically fueled by speculation. In essence, the difference between 2007 and 2017 is purchase motivation. Today’s consumers are purely attempting to move, up-size, or downsize to meet household needs, rather than acquire a balloon loan, speculate future gains, and attempt to re-sell in 2 years for a quick buck. The credit products that fueled the previous bubble’s hype are just not available today; ask any millennial with student debt or a Gen Xer with bad credit. Supply (lack-there-of,) and demand (consumer necessity) are the driving principles behind this vigorous real estate market, not credit-fueled speculation and enthusiasm.

 

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Thinking about Buying or Selling? Call or Text: 970-417-9375

 

Copyright 2017 Keller Williams Colorado West Realty, LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal opportunity housing provider. Each office is independently owned and operated. For sale by owner data not included in research findings. Sales data reflects sales from homes not limited to the Atha Team LLC. This information was gathered from Keller Williams, The National Association of Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2017. All Rights Reserved.

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

October 2017 – Montrose Colorado Real Estate Market Update

Market Update

As the Montrose real estate market eases into the fall season, inventory continues to present an uphill battle for buyers. During the same period last year, the active inventory consisted of 306 homes. This year, the inventory of active homes for sale is down 20% with only 246 homes available for purchase. Over the past 4 years there has been a 14% fluctuation in the number of homes sold in September, a relatively consistent volume between 68 and 80 units selling. Homes under $200,000 consisted of 40% of the sales volume last month while homes over $400,000 consisted of 7% of the Montrose real estate market. Home listed under $200,000 are selling extremely fast and some have wondered if this price range will be around in Montrose for much longer. With that said, buyers are still showing discretion and often placing their home purchase decisions on hold until more desirable inventory materializes. New construction is still a small portion of the total real estate market in Montrose.

Housing Inventory Rates – 3rd QTR Recap

  1. $200-300K
    • 64 median days on market
    • 2.3 month supply of inventory
  2. $300-400K
    • 66 median days on market
    • 5.7 month supply of inventory
  3. $400-500K
    • 129 median days on market
    • 1.4 year supply of inventory (17.6 months)
  4. $500-600K
    • 85 median days on market
    • 10.7 month supply of inventory

Note: equilibrium (equal buyers and sellers) is considered 6 months

Mortgage rates

Mortgage rates are still at record lows despite the Federal Reserves recent meeting and commentary on the economy. Inflation, or the lack there of, continues to delay aspirations of the Fed to raise interest rates, therefore stymieing mortgage rate increases. Cheap money should continue to contribute to new mortgages and home purchases but the question is for how long? If the Fed gets their way and the positive economic indicators continue, the record low mortgage rates shouldn’t last much longer.

 

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Thinking about Buying or Selling? Call or Text: 970-417-9375

 

Copyright 2017 Keller Williams Colorado West Realty, LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Equal opportunity housing provider. Each office is independently owned and operated. For sale by owner data not included in research findings. Sales data reflects sales from homes not limited to the Atha Team LLC. This information was gathered from Keller Williams, The National Association of Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2017. All Rights Reserved.