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
Montrose CO Real Estate Blog

4 Ways to Determine If a Montrose CO Home Is Affordable

montrose COBuying a house in Montrose CO is exciting, and ideally, you will enjoy it for years to come. Many aspiring homeowners wonder just how much they can afford to spend. The answer is different for everyone, so you’ll have to crunch the numbers and take an honest look at your budget. There are some general rules of thumb to follow, so try these tips to make sure you choose a house that you’ll be able to make payments on comfortably.

1. Make a Complete Household Budget

If you don’t already have a budget for your monthly income and expenses, you need to sit down and hash this out. Use a budget template to get focused, and enter the amounts you spend for important items such as rent, car payments, student loans, food, entertainment and so on. Once you have these numbers in hand, consider how much you feel comfortable spending on a monthly mortgage payment. You may wish to trim certain areas to boost your housing line, but just make sure everything balances out.

2. Keep Your Mortgage Payment Under 28 Percent of Your Income

Experts recommend that your total housing costs come to no more than 28 percent of your total take-home pay. Keep in mind, though, that this number isn’t just the mortgage payment: It should also include taxes and homeowners insurance payments. Your real estate agent can help you estimate the full cost as you shop around.

3. Experiment With Online Calculators

To get a sense of how house prices and real estate taxes in your area influence your buying power, try using an online affordability calculator to get a ballpark figure for what you can afford in Montrose Colorado. It’s also worthwhile to play with a mortgage calculator to see how different down payments and interest rates affect your bottom line.

4. Talk to Your Lender

The mortgage company you choose will have the final say on how much you can borrow, so it’s worth getting prequalified and preapproved before you get serious about house hunting. Your lender may also help you come up with creative ways to boost your down payment or take advantage of special lending programs.

Once you know your number, you’re ready to hit those open houses and showings! Having an accurate budget in mind will make your real estate search in Montrose much easier and allow you to focus on the right houses for you.

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
Real Estate Statistics - Montrose Colorado MLS

Montrose Housing Market Stats – February 2017

Montrose Housing Market

Montrose Colorado’s housing market experienced a dip during the last quarter of 2016, but nothing like previous years. January experienced a slight lull (which correlated with colder weather and snow), but homebuyers are again quite active for early February, which is traditionally a slow month in Montrose.

Many Buyers are choosing to build rather than purchase existing home inventories. This has provided life to the lagging lot and land markets in Montrose. January’s numbers reflect the seasonal lull; downward median selling prices should not be confused with the overall upward drive of the market. The days-on-the-market decreased by 32% in January from the same time last year, giving further evidence of the driving demand for homes.

The upper-end price range is experiencing painfully low inventory levels right now; homes that are on the market, and in the upper-end price range, have seen an increased amount of action. This is especially true, considering that Montrose is still in the dead of winter.

The majority of new construction in Montrose is still owner carried (ie. not speculation home builds). The market as a whole is grateful to see any new added inventory, may it be speculation or custom builds.

If you’re looking to get an edge on the market in 2017, consider giving the Atha Team a call to list your lot or residential property. The Montrose housing market is unusually warm for this time of year, as is the weather.

National Market

In the National Real Estate Market, housing experienced a continued growth trend in the last quarter of 2016. This growth in housing sales was strong despite interest rates on home mortgages rising nearly a full percentage point. Consumer sentiment reached a 10-year high in January, but has shrugged away somewhat this month now that the, “Trump Bump” has faded. Low housing inventory is still driving consumer demand despite blue-state blues and expensive housing costs. National housing inventories are at a 17-year low according to Market Watch Economists. (U.S. Consumer Sentiment Steps Back From Last Month’s High).

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Montrose Housing Market

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

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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 2016. All Rights Reserved.