Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

August 2017 – Montrose Colorado Real Estate Market Update

Montrose Real Estate Market 2013-2017 Historical Recap

Atha Team Montrose Colorado Real Estate MarketThe Montrose Colorado real estate market has proven resilient with sustained growth trends over the last four years, not only in the number of home sold, but also in home value gains. Homeowners, once underwater in mortgages acquired during last housing peak, have been able to sell at a profit over the last few years. The equity gain over the past four years averaged close to 8% annually, while the number of homes selling per year experienced advances between 8% and 17%. This has truly been a phenomenal season in the Montrose housing market, especially when looking back since 2010 when the Montrose market bottomed out.

Atha Team Montrose Colorado Real Estate MarketA tapering in the market appears to be the theme of 2017, with equity gains down 4% relative to the same period last year. Also, the number of units sold is up only 1% from the same time period last year. Several factors may be contributing to this leveling out of market activity including: affordability, price gain sensitivity, and tight inventories. Years end should provide a better assessment of the 2017 housing market.

1. 2017 – Jan 1st – Aug 1st (YTD)

  • 425 Total Units Sold
    • 1% gain in units sold (from the same time period Jan 1st – Aug 1st 2016)
  • Median Sold Price: $215,000
    • Homes are selling 0.4% below asking price.
  • 2.3% Gain in Sale Price 2016 – 2017  (from the same time period Jan 1st – Aug 1st 2016)
    • Relative to:
      • 6.3% gain 2015 – 2016 (from the same time period Jan 1st – Aug 1st)
    • Evidence that the equity gain in the market (relative to the 7% gain per calendar year as seen in the previous recovery years) is possibly leveling out.

     

2. 2016 – Jan 1st – Dec 31st  (1-Calendar year)

  • 754 Total Units Sold
    • Up 8%, year-over-year, from 2015
    • 55% of total annual sales occurred between Jan 1st – Aug 1st 2016
  • Median Sold Price: $209,900
    • Homes sold 2.3% below asking price.
  • 7% Total annual equity gain/sale price gain year-over-year from 2015

 

3. 2015 – Jan 1st – Dec 31st  (1-Calendar year)

  • 693 Total Units Sold
    • Up 17%, year-over-year, from 2014
    • 57% of total annual sales occurred between Jan 1st – Aug 1st 2015
  • Median Sold Price: $194,900
    • Homes sold 2.3% below asking price.
  • 13% Total annual equity gain/sale price gain year-over-year from 2015

 

4. 2014 – Jan 1st – Dec 31st  (1-Calendar year)

  • 577 Total Units Sold
    • Up 17%, year-over-year, from 2015
  • Median Sold Price: $170,000
    • Homes sold 2.8% below asking price.
  • 3% Total annual equity gain/sale price gain year-over-year from 2014

 

5. 2013 – Jan 1st – Dec 31st  (1-Calendar year)

  • 563 Total Units Sold
  • Median Sold Price: $164,900
    • Homes sold 2.3% below asking price.
  • 9.3% Total annual equity gain/sale price gain year-over-year from 2012

Atha Team Montrose Colorado Real Estate Statistics Graph

 

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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

June 2017 – Montrose Colorado Real Estate Market Update

A Tight Spring Market

The Montrose Colorado Real Estate Market has tightened this spring while sale prices continue to increase. The number of homes for sale in Montrose has floated around 250 units for the past few months, reflecting a decrease of about 50 units (20%) from the same time last year. New homes are indeed coming onto the Montrose market, but near the same rate as those being sold. This is great news for Sellers and local home builders looking to meet demand.

Different Prices – Varying Activity

Comparing the last 3-months from a year ago, the sales volume in Montrose has decreased 4% while prices have increased 4%. The first quarter of 2017 experienced a 9% increase in sale prices along with a 15% drop in sales volume, relative to the same period last year.

Inventory levels and sales volume drastically differ in Montrose Colorado depending on the price range. Homes between the $400,000-$500,000 rage have the highest saturation rate, reflected in a 1.2-year (14.46 month) inventory of homes. There are currently 45 homes actively for sale in this price range with only 18 selling within the last 6-months.

The housing hot spot is within the $150,000-$300,000 range, reflected in the low median days-on-the-market (51 days). By subtracting (40 days) the typical time it takes for a home to close, one can observe that homes in this price range are going under contract within the first 11 days of going active on the market. This is fantastic news for those looking to sell in this price range. Some sellers in this price range have even experienced not only multiple offers but multiple backup offers!

National Shift –  Renters Are Now Buyers

Nationally, there has been a shift from renting to buying. This is the first time in 10-years that new home formations (home purchases) are outpacing new rental agreements. These first-time home buyers now account for 42% of the total buyer market, up 11% from 2015. (Fannie-Mae defines first-time home buyers as those who have not owned a home in the last 3-years). (The Next Hot Housing Market: Starter Homes)

 

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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

April 2017 – Montrose Colorado Real Estate Market

Home Prices Reaching Possible Breaking Point

With consumer confidence at a 16-year high and Montrose Colorado real estate values gaining monthly, anticipation is expected as to what 2017 will bring. Along with the booming equity in home vales comes the reality that Montrose home prices are reaching a possible breaking point for local buyers in the $150,000 – $300,000 price range (see inventory levels below).

Anxious Buyers and Apprehensive Sellers

Wage growth, at 2.5%, has failed to match increases in real estate price gains. This is the most evident for first-time home buyers and reflects the declining trend in US home ownership. The steep increase can be attributed to, once again, lack of new housing inventory. Further, the lack of new construction can be linked to the tight lending requirements for construction loans. National inventory levels are at a 20-year low (Property Buyers Face Hard Spring). Potential homes Sellers are now becoming reluctant to put their homes up for sale in fear of purchase options once they do sell. The current housing market has created a curious cocktail of anxious Buyers and apprehensive Sellers.

As home prices increase, the volume of sales is taking a hit. The median days on the market in Montrose has dropped to 69 days. Subtracting an average of 45 days to close, homes are now residing on the market for 3.4 weeks before they go under contact. Further, the average number of homes sold in Montrose Colorado dropped last month from 58 to 46 units sold. Still, home equity gains are relatively modest in comparison to the 14% gains seen in 2005 before the Financial Crisis. Last years equity gain in Montrose topped out at 7%.

Mid-Range and Luxury-Housing Inventories

On a brighter note for Montrose, current inventory levels above $300,000 are drastically improving. We’ll see if this trend continues through the spring and summer, but relative to a year ago, mid-range and luxury-housing inventories are looking much healthier.

Current Saturation Rate 10/4/16 – 4/13/17 (6-months):

  1. $500- 900K (assuming current homes under contract close):
    1. 2.33 Homes selling per month
    2. 24/2.33 = 10.30 months of inventory
  2. $400-$500K (assuming current homes under contract close):
    1. 4.33 homes Selling per month
    2. 34/4.33 = 7.84 months of inventory
  3. $300 – 399K
    1. 8.16 homes selling per month
    2. 54/8.16= 6.61 months of inventory
  4. $150 – 299K
    1. 24.5 homes selling per month
    2. 51/24.5 = 2.08 months of inventory

A healthy housing inventory, when buyer demand and seller supplies are equal, is considered to be around 6-months.

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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

February 2017 – Montrose Colorado Real Estate Market

The Montrose Colorado Real Estate Market has experienced very little slowdown. November and December experienced the traditional holiday period lull, but February and March have provided accelerated activity here at the Montrose Keller Williams Office.

Rates are rumored to increase today; this will put a further dent in affordability for first-time home-buyers. Affordability is still quite good though for the rest of the US; home-ownership costs are 15% of total income, while home-ownership costs for first-time home-buyers are 25% (The historical national average is 21.6%).

Wage growth in the US is back on the menu. February’s job report showed a 2.8% gain in wages, reflecting the tightening labor pool. Keller Williams chief economist reported a 5% increase in personal income over the last year. Both of these numbers point to positive growth for US consumers, which should hopefully provide first-time home buyers a leg-up in the current housing challenge.

Speaking of challenges, housing inventory is becoming a testing point in the economic recovery of Montrose Colorado. Companies looking to re-locate to Montrose have expressed their concerns about housing inventory and rental availability. Home buyers across the board are trying to navigate the few purchase options available in the current housing market. On the positive side, this supply and demand scenario provides an opportunity for homeowners to sell high and for investors, builders, and banks to rise to the occasion.

As the stock market peaks in its 8th year bull run, real estate looks like the next investment opportunity. Historical new home construction growth averages 1.08% annually; 2016 produced a 0.78% gain in new housing construction. Current headwinds to achieving this growth reality are: financing, building material costs, and skilled labor availability.

Montrose County issued 56 single-family building permits in 2015. This past year experienced a 1% gain, or 57 total permits issued. The good news is that 9 permits have already been issued in the first 2-months of 2017; this is a stellar start to the New Year. Further signs of future inventory growth can be seen in the rapidly diminishing inventory of build-able lots for sale. In Montrose, the last 6-months saw a 32% increase in lot sales from the same time period last year. Hopefully this is an indicator of future new home builds to come. Currently, there are only 97 lots available for sale under $60,000 with less than 1-acre.

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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.