2016 has been a remarkable year in real estate, not only for Montrose Colorado but for the entire Nation. With market gains of 7% over the last year, Montrose homeowners have been able to make profitable sales as well as break-even sales for homes purchased in the mid-2000s. Market growth and sales are being hindered by a continued lack of inventory. Montrose home buyers have been stunted in their home search efforts even though the total inventory and number of homes sold in Montrose is up from last year.
Movement in the Upper-End Inventory
Although still considered soft, the upper-end price range had a noticeable jump in activity this year. This trend was especially apparent within the price range of homes listed between $250,000 and $350,000. The increase in activity is most obvious in the reduction of days homes sat active on the market before selling (see graph).
There was a 32% increase in the sale of homes priced between $300,000 and $400,000 and a 31% increase in sales listed within the $400,000 to $700,000 price range. These upper-end markets still experienced a much higher days on market and low sale volume relative to the Montrose real estate as a whole but the increased activity is encouraging.
Depleted Inventory and the Sweet Spot
The majority of homes sales in Montrose Colorado occurred within the $100,000 to $400,000 range. In 2016, 88% of the home sales took place in this market. The real sweet spot is within the price range of $150,000 and $300,000, where most Montrose residence prefer to buy. At this price point, homes are moving very quickly and therefore experiencing depleted inventory. In mid-October of this year, there were only 89 homes listed for sale in this “sweet spot” price range, many of these homes having already been picked over.
Numbers Break Down (Jan 2015 – Oct 2015 vs. Jan 2016 – Oct 2016)
- Median Sale Price: 7% Increase
- Price Range Volume ($100 – $400K):
- 87% of all sales in 2015
- 88% of all sales in 2016
- Price Range Volume ($300 – $400K):
- 18% of All Sales in 2016
- 32% Increase in Sales
- Price Range Volume ($400 – $700K):
- 8% of Al Sales in 2016
- 31% Increase in Sales
Days on Market
- Days on Market: 10% Decrease
- Number of Listings: 4% Increase
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Copyright 2016 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 2016. All Rights Reserved.