Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

November 2017 – Montrose Colorado Real Estate Market Update

Bidding Wars Make Their Way to the Western Slope

2445 Shavano Cir. Montrose, CO 81401 - Atha Team Real Estate Golf Property for Sale2017 has been quite the year for real estate in Montrose Colorado. Bidding wars finally made their way to the Western Slope from the Colorado Front Range; the Atha Team experienced an abundance of bidding wars on homes that were listed by Sellers working with the Atha Team as well as buyers on the purchasing side. The bulk of this auction type activity occurred bellow the $200,000 price range. The Montrose market has shifted indeed, to a hyper sellers market under $250,000. With that said, homes that are overpriced are still over looked by distinguishing buyers.

A few people have recently asked, “Will this type of market activity continue?” Others have asked, “Are we in a real estate bubble like 2007?” The market activity, when speaking of price increases, may continue. The sustained equity gains in the market depend on inflation and wage growth eventually matching housing costs. Currently, housing costs are outpacing wage growth and inflation of other goods such as food and automobiles due to lack of housing supply. If new housing construction starts continue to lag behind consumer demand, and prices continue to escalate, affordability may act as a ceiling to the impressive gains experienced over the last 5 years.

Aerial View 18858 6495 Rd Montrose Colorado 81403 - Atha Team House For SaleReal estate bubbles, as with any asset bubble, are typically fueled by speculation. In essence, the difference between 2007 and 2017 is purchase motivation. Today’s consumers are purely attempting to move, up-size, or downsize to meet household needs, rather than acquire a balloon loan, speculate future gains, and attempt to re-sell in 2 years for a quick buck. The credit products that fueled the previous bubble’s hype are just not available today; ask any millennial with student debt or a Gen Xer with bad credit. Supply (lack-there-of,) and demand (consumer necessity) are the driving principles behind this vigorous real estate market, not credit-fueled speculation and enthusiasm.

 

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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

October 2017 – Montrose Colorado Real Estate Market Update

Market Update

As the Montrose real estate market eases into the fall season, inventory continues to present an uphill battle for buyers. During the same period last year, the active inventory consisted of 306 homes. This year, the inventory of active homes for sale is down 20% with only 246 homes available for purchase. Over the past 4 years there has been a 14% fluctuation in the number of homes sold in September, a relatively consistent volume between 68 and 80 units selling. Homes under $200,000 consisted of 40% of the sales volume last month while homes over $400,000 consisted of 7% of the Montrose real estate market. Home listed under $200,000 are selling extremely fast and some have wondered if this price range will be around in Montrose for much longer. With that said, buyers are still showing discretion and often placing their home purchase decisions on hold until more desirable inventory materializes. New construction is still a small portion of the total real estate market in Montrose.

Housing Inventory Rates – 3rd QTR Recap

  1. $200-300K
    • 64 median days on market
    • 2.3 month supply of inventory
  2. $300-400K
    • 66 median days on market
    • 5.7 month supply of inventory
  3. $400-500K
    • 129 median days on market
    • 1.4 year supply of inventory (17.6 months)
  4. $500-600K
    • 85 median days on market
    • 10.7 month supply of inventory

Note: equilibrium (equal buyers and sellers) is considered 6 months

Mortgage rates

Mortgage rates are still at record lows despite the Federal Reserves recent meeting and commentary on the economy. Inflation, or the lack there of, continues to delay aspirations of the Fed to raise interest rates, therefore stymieing mortgage rate increases. Cheap money should continue to contribute to new mortgages and home purchases but the question is for how long? If the Fed gets their way and the positive economic indicators continue, the record low mortgage rates shouldn’t last much longer.

 

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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.