Montrose Co Real Estate
Montrose CO Real Estate Blog

September 2017 – Montrose Colorado Real Estate Market Update

Local Market

Real Estate Montrose Colorado - Atha Team Keller WilliamsThe Montrose Colorado Real estate market is still in high gear as homes continue to gain in value and sell with minimum days-on-market, reflecting the ever-tightening housing inventory. The marketplace saw a back-to-school lull but picked right back up; 30 homes went under contract in Montrose County September 1st through 8th. They ranged from a $142,000 charming downtown house on a corner lot, to a $795,000 luxury home on 20+ acres with mountain views.

Residential properties that sold in Montrose County between September 1st and 8th ranged from a spacious doublewide in Cimarron Creek at $107,500 to a $315,000 Waterfall Canyon home with 3,000+ sq. ft. The majority of recent activity is occurring within the $200,000 – $300,000 price range.

The month of August experienced an astounding gain of 14.5% in sales price relative to last August. This gain gets ironed out when the quarterly and yearly gains are taken into consideration as a whole. Comparing Q2 of 2017 with Q2 of 2016, a more holistic gain of 6% can be observed.

Several note worthy trends are worth mentioning when comparing Q2 2017 with Q2 2016: a substantial decline of 9% in housing inventory, paired with an impressive 24% drop in median days on market, both pointing to an increasingly heated market.

Comparing the last 3 years, the number of homes sold in August is relatively flat.

National Market

Atha Team Property for Sale - Sold Atha TeamThe National real estate market is gaining in equity quickly as well due to the shortage of inventory. Sellers in select US housing markets are making profits of over 50% on the sale of their homes within 7 years of original purchase. The metro area of Oakland California, experienced gains of 78% when homes owners recently sold their properties that were purchased during the bottom of the housing crash (2009-2010). Other note worthy areas with astounding equity increases are Portland Oregon at 65% over a 9-year period and San Jose California with a 57% gain in approximately 10 years (These Americans made a profit of 50% or more selling their homes).

 

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Monthly market stats for real estate market in Montrose, Colorado by the Atha Team

 

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

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
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.