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.

Montrose Co Real Estate
Montrose CO Real Estate Blog

Top 10 Home Trends – Homes for Sale Montrose Co

What do Montrose Co Home Buyers Want?

While homes are often valued by their square footage and the neighborhood in which they are located, homes that have been updated tend to sell more quickly and for a higher price. It may not be feasible or financially advisable to update an entire house before it’s sold; however, there are improvements that can be made that will help your home look more attractive to potential buyers.

 

1. No Brass Fixtures

Whether it’s the knobs on your cabinets, your light fixture, or even the trim on the glass of your shower door, buyers have moved away from the shiny brass craze of yesteryear. Removing the brass fixtures and replacing them with brushed nickel or aged bronze is more likely to give a space an updated appearance. Don’t forget areas like doorknobs and bathroom faucets.

2. Countertops and Backsplashes

There’s nothing that makes a beautiful kitchen with expensive finishes look cheaper than a substandard countertop. While various types of laminate and formica offer cost effective alternatives, some of them detract from the overall look of the kitchen. Other alternatives include concrete, stainless steel, soapstone, tile, butcher block, composites, and of course granite and marble. Matched with a backsplash, a beautiful countertop can make any kitchen feel high-end. A less expensive alternative is to hire a professional to paint and seal the existing countertops.

Check out this granite overlay process that turns old countertops into new ones!
And for the more brave renovator, try this trick to make laminate countertops into concrete countertops with very little money!

3. Kitchen Cabinets

They seem to be in the majority of homes – the reddish inexpensive cabinets that scream “builder’s grade”. Custom cabinets made from upgraded wood such as alder add instant appeal to a house. Stay away from ornate edges or wooden cutouts. Clean and simple is what’s “in”. Replacing cabinets with new custom cabinetry is quite expensive, and the selling price of the home is not likely to justify such a large cost. However, there are alternatives. Cabinets can be painted or stained to give them a whole new look. Try Rust-oleum’s cabinet refinishing kit! New hardware will help, too. Make sure to find new pulls or knobs that will match the existing holes in the cabinets, or fill the holes before you stain and re-drill!

4. Matching Stainless Steel Appliances

Nothing makes a kitchen look more pulled together than matching appliances. If they’re all stainless steel, even better! White appliances tend to make a kitchen appear more outdated, but if they match the rest of the appliances it probably won’t be of financial benefit to replace them all. If you have mismatched appliances, or simply want an update, try painting them with Liquid Stainless Steel (http://liquidstainlesssteel.com/) or a similar product. Certain stainless steel paints can only be used on things like refrigerators, so be sure to research the product you choose thoroughly to make sure it matches your intended application!

 5. Undermounted Kitchen Sink

Kitchen sinks that are mounted so that they are under the countertop are trending right now. The undermounted sink alleviates crumbs and moisture where the countertop and sink meet. This clean modern look is best accomplished by a professional. The sink must be able to bear the weight of dishes, so not all countertops are ideal. Undermounted sinks work best with solid countertops such as granite, butcher block, concrete, or marble. If an undermounted sink is not feasible, you can give your existing sink a facelift by installing a new brushed nickel faucet.

 6. Walk-in Shower with Tile Surround

A walk-in shower in a master bathroom is very desirable in the current Montrose Market. While shared bathrooms that children use still need a traditional bathtub with a showerhead, more and more master bathrooms are being built with a separate tub and walk-in shower. The walk-in shower should be tiled to give it the best look. If you don’t have a walk-in shower, the area above your bathtub can be tiled to give it the same feel.

 7. Soft-Close Drawers

Soft-Close Drawers give any space a custom feel. This simple upgrade can be done to any drawer, and for a low cost. The pieces can be retrofitted onto existing drawer systems with little cost and time. The same goes for pantries and cabinets. This is not limited to kitchen spaces. Drawers all throughout your home can benefit from this simple upgrade.

 8. Flagstone

While making adjustments in your home before listing it for sale, make sure to pay attention to your outdoor spaces as well. If you do not already have a patio of some sort, consider making one with flagstone pavers. Flagstone is an attractive way to create character in an outdoor space. There are many options that range from small square flagstone tiles, to large naturally shaped pavers. Design something that fits with the space you have. Try something that moves your eyes around the outdoor space. Multi-levels add interest and depth. This can be an expensive endeavor, and you’re unlikely to recoup the costs in the sale of your home. An alternative is to clean the existing yard, and give it defined seating areas with well-placed patio furniture.

 9. Natural Flooring

There are more flooring alternatives today than ever before. If you’re in the market for new flooring, consider something natural like hardwood or bamboo. In kitchens or bathrooms, tile is always an attractive choice. Avoid black and white checkered tile and go with something more natural looking. Laminates have progressed significantly in recent years. Laminate hardwood can be better in some situations than even natural hardwood. It stands up to kids and pets well. Choose a laminate that looks hand-scraped and has many variations in the pattern. Laminate tiles are also becoming increasingly popular. They can withstand things being dropped on them better than traditional tile. There are some great options that can even be grouted to give them a more realistic look. Linoleum tends to be the least desirable flooring choice. If you have existing linoleum in a limited space such as a bathroom or kitchen, consider finding an inexpensive tile to replace it. Laying tile can be accomplished DIY relatively easily and cost effectively.

10. New Windows

While this is not the most exciting adjustment that can be made to update a home, it is one that brings value. Updated windows are more energy efficient than old ones, and eventually the difference in your utility bills will make up for the initial cost of the windows. This is a great change to make if you plan to stay in your home for a few more years. If you are listing your home now and replacing the windows makes less financial sense, try dressing them up with ceiling to floor drapes that are hung so they extend starting at the far edges of the window frame. This will give the window a larger and more dramatic feel. If the existing screens have unsightly holes, remove the screens before listing your home and store them in your garage.

Bonus Tip – The tried and true tricks of painting walls neutral colors, giving your house a deep clean, and removing approximately 75% of your belongings from the home will help prepare your house to be listed for sale.

Is there anything in regards real estate that we can help you with?

Give us a call; we’re here to help.

970-417-9375

 

Montrose Co Real Estate
Montrose CO Real Estate Blog

January 2017 Market Update – National & Montrose CO Real Estate

January 2017 – Montrose CO Real Estate Market Update

Montrose CO Real Estate Market

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Happy New Year and welcome to your 2017 Montrose Colorado Real Estate Market Update.

I’m going to give you a quarterly snapshot of 2016 in Montrose, along with an update on land sales in Montrose, followed by a national real estate market summary.

The Montrose Colorado real estate market was certainly an upward roller coaster in 2016. In the 1st quarter of 2016, 12% more home sold, but the median selling price was down by 2%.We experienced large gains again in the 2nd quarter with a 6% increase in sales and a price increase of 9%. The 3rd quarter threw us a curve ball with a decrease of 2% in homes sold, while prices were still up year-over-year by 7%.

Lastly, the 4th quarter was the most unusual in 2016. The Montrose real estate market experienced a 25% jump in residential units sold, along with an 8% price increase in the 4th quarter. We believe that the unusually warm fall season weather coupled with a low housing inventory led to this heightened market activity. The median sale price for the 4th quarter of 2016 was $209,000 versus $192,000 in 2015.

Vacant land sales are up by 9% and the median price is at $44,000. This shows us that the bulk of land sales are residential lots in town or 1-3 acre residential building parcels surrounding Montrose county Colorado.

We are still seeing low inventory numbers this winter in the Montrose housing market. Small outcroppings of speculation and new build homes are appearing, but these numbers are far from volumes strong enough to satisfy the robust buyer demand. The hottest priced homes are still under $300,000.

National Real Estate Market

On a national level, the median sales price for this month is at $232,200. This is up 6% from last year, but down a bit from last month.

The interest rate on a 30 year fixed mortgage continues to creep up and is at about 4.25%.

Denver Colorado, along with many regions in the US, has failed to match home price gains with wage growth. This has created a real problem for affordability in Colorado and the nation as a whole. Modest gains are forecasted for the 2017 housing market due to rising interest rates and declining consumer confidence within the housing sector. With this said, the real estate market is still a bright spot within the US economic recovery. (Home prices drop in metro Denver as affordability becomes an issue).

Thank you and have a fantastic start to your year! – The Atha Team

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Copyright 2016 Keller Williams Realty, Inc and 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.