Montrose Co Real Estate
Montrose CO Real Estate Blog

July 2017 – Montrose Colorado Real Estate Market Update

High Octane Summer

The Montrose Colorado Real Estate market is still running on all cylinders this summer as housing inventory shortages prove to be the prevailing headwind for 2017. The median sale price in Montrose for last month was $216,000. The number of units sold was up 15% from the same time last year while the number of days on market was down 22%, a substantial reflection of just how heated the housing market has become. The majority of homes priced under $300,000 are going under contract within 2 weeks of listing. While this is music to the ears of sellers, buyers are in a conundrum regarding limited housing options.

Real Estate Price Range Activity in Montrose Colorado
  1. $150K – $299K (assuming current homes under contract close)
    • 37 homes selling per month
    • 3.9 month supply of inventory
  2. $300K – $399K (assuming current homes under contract close)
    • 11.7 homes selling per month
    • 3.4 month supply of inventory
  3. $400K – $499K (assuming current homes under contract close)
    • 3.7 homes selling per month
    • 12.3 month supply of inventory
  4. $500 – $600 (assuming current homes under contract close)
    • 3 homes selling per month
    • 11 month supply of inventory

 

National Market

montrose-real-estate-market-statsNationally, the real estate market is very similar to Montrose, reflecting extremely tight inventories and looming concerns surrounding affordability. The national median days on market dropped to just 27 days in May. New home construction is occurring, but in the higher price ranges where builders are attracted to potentially higher profit margins. The median sale price for new construction in May was at $345,800. This new build sale price is the highest seen since the metric has been recorded. The majority of new builds in Montrose involve baby boomers constructing or purchasing new homes, which at retirement age have nest eggs to invest in new housing rather than sift through existing inventory. (Buyers Fuel Market for New 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
Montrose CO Real Estate Blog

6 Questions to Ask Before Buying New Construction in Montrose

6 Questions to Ask Your Builder Before Purchasing a New Home Build

What could be more exciting than being the owner of a brand new home? For real estate in Montrose CO, choosing to build new instead of buying what’s available can make a lot of sense, especially if you have a highly specific idea of what you want in a home. As with any real estate transaction, though, you’ll need to ask the right questions and do your homework to make sure the house you get is a lifestyle booster — not a lemon.

1. How Much Customization Will You Allow?

Not all builders are interested in custom design changes. If you’re buying a house in a new development, know that the builder may offer a limited selection of finishes and designs, all designed to keep their costs down and their schedule moving. Make sure you know if you’ll be able to get what you want before committing.

2. Do You Offer a Warranty?

Many builders will guarantee their workmanship with a warranty for at least one year. This allows enough time to uncover any problems that might pop up with changes in the season — a leaky basement during the spring rains, for example. Understand your coverage under this important policy.

3. What Will the Neighborhood Look Like in the Future?

If your builder has a master plan for the neighborhood, ask to see it. If not, do a little research into local ordinances and community planning to see what your area is zoned for. This information will help you avoid any unpleasant surprises down the road.

4. Can You Give the Final Price Ahead of Time?

Not all builders will commit to a final price before the house is complete, which helps them cover themselves for changes in the plans, custom finishes and unforeseen delays. This uncertainty can cause problems with your lender and your budget, so it’s important to nail down these details as much as possible ahead of time.

5. Can I See the Fine Print?

Your real estate agent and a lawyer should look over the construction contract to make sure everything seems fair and correct. These documents can get complex, so it makes sense to have someone on your side looking over the wording.

6. When Can I Have an Inspector Take a Look?

Just as you would do a walkthrough with your real estate agent and an inspector before finalizing the sale of an older home, you’ll also want to have an inspector check everything out in new construction.

If you’re interested in new construction, talk to your real estate agent to get started on finding a building project that you’ll love to call home.

 

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Kevin L. Johnson
Vice President – Business Banker, Montrose Branch

NMLS# 1208350
Address: 1561 Oxbow Drive | Montrose CO | 81401
Branch Tel: (970) 240-5489

Cell: (970) 596-0934
Website: www.timberlinebank.com

 

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
Montrose CO Real Estate Blog

Different Loans for Your Montrose Home Purchase?

Unless you are one of the lucky few with a full bank account or a big windfall coming your way, you’ll need to consider financing when you decide to buy a house. In fact, it’s often a good idea to line up your home loan and get preapproved for a mortgage before you start shopping so that you’ll be ready to make a strong offer when you find the house of your dreams.

When you shop around for home loans in Montrose Colorado, you’ll notice that there are several types available, depending on your financial and personal situation. Here are the most common types of home loans available:

  • Conventional Mortgages: This is your classic home loan, and it typically requires a 10 to 20 percent down payment. Common terms are for 15 or 30 years. Buyers often need strong credit scores to qualify.
  • FHA Loans: These loans are backed by the Federal Housing Authority and allow borrowers to purchase a home with as little as 3.5 percent of the selling price as a down payment. It’s easier to qualify, but you’ll also have to pay a monthly mortgage insurance premium for the privilege.
  • USDA Rural Housing Loans: The US Department of Agriculture has a loan program to encourage buyers to purchase property in rural areas, and it offers low rates and special terms. You’ll need to meet income requirements, and your property will need to be approved to qualify.
  • VA Loans: If you are a veteran of the US armed forces, you can qualify for a zero percent down payment loan on a home. This is the best possible deal, so take advantage if you can.
  • 203k Rehab Loan: This is a specialty loan for fixer-upper properties that need major renovations before you can move in. You’ll need contractor estimates as well as before and after appraisals to get approved, but it could be well worth the effort if you find a one-of-kind house that just needs some love.

In addition to these basic types of loans, there are many other things to consider, including the pros and cons of fixed vs. adjustable rate mortgages. Work with a qualified, trustworthy mortgage officer to learn more about which home loan is right for you, and you’ll be ready to move into your new Montrose house before you know it.

Photo of Brad Oberto
Brad Oberto
Bank of Colorado
Vice President / Lender
200 N. Townsend Avenue
Montrose, CO 81401
970-240-5909
NMLS: 608071
 

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.