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

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.

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

November 2016 Montrose CO Real Estate Stats – Sales & Available Foreclosures

Baby It’s Warm Outside

The Montrose real estate market is still quite active as warm weather in November inspired Buyers to place offers on homes left-over from the summer. The volume of home sales activity in Montrose has been anything but cold. The number of homes sold in November was 22% higher then the previous 5-year average and 30% higher than November of last year. This is quite abnormal to what the industry is used to here in Montrose Colorado.

Montrose home inventory is painfully low as many homes have now left the market for the season. This has given an advantage to those looking to sell their home during the winter months, enabling properties to stand out among the enlarged buyer pool.

Time to Throw Confetti?

It’s true; national home equity values are now above record peak levels that were prior to the Great Recession (Housing Prices Exceed Housing Boom Levels). The caveat is that this figure is based solely on the Chase-Schiller Index and is not quite adjusted for inflation. According to Zillow economists (which factored in inflation), national home prices are still 2.7% below peak values, which is still pretty darn good considering we just climbed out of the most disastrous recession (that was created through the housing and mortgage industry) since the Great Depression (Home Prices Recover Ground).

Interest Rates Awaken

Actually, the new Star Wars Movie coming out on the 18th of December has nothing to do with interest rates, but a rise is coming and is already here. Rates on a 30-year fixed mortgage have jumped from 3.57% to 4.13%; this is a little over 1/2% jump since August. If already struggling affordability gets worse, due to a decrease in affordability on a monthly mortgage payment, don’t be surprised if these bloated home prices level-out over the next year.

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

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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.