Montrose Market
The local Montrose housing market experienced an activity uptick in June relative to the prior two months. The mid-spring 3-month unit sale average was down only 23% from the previous 12 months, due to an uptick in June sales. Not bad considering the winter season was down close to 40% from the previous year.
The Montrose real estate market activity has once again split into two distinct markets. Currently, home sales under $500K are quite hot, and available inventory is sparse. Much of the new-construction inventory showing up in the data is technically not built yet. Removing “TBD homes” from the data puts the months of available inventory under $500K much lower than the data shows. Prices in this range are actually increasing as a result. Strong demand in this price range has everything to do with affordability and monthly payments.
Most homes with a price tag exceeding $700K remain unsold. The inventory over $700K is evolving into a strong buyer’s market with 20 months (almost 2 years) of available inventory! Even well-priced homes are taking much longer to sell relative to last spring. Supply determines price, and we expect to see discounted prices in this category if this current inventory trend continues. Pricing and marketing expertise are now critical factors in determining who actually sells in this price range before winter. We are truly in a new market over $700K.
New construction is still a great value relative to many existing home products on the market right now. With that said, borrowing costs have put downward pressure on builder activity. New single-family home starts in Montrose decreased 46% from the same quarter last year.
Nationally, home builder confidence has been steadily increasing since the summer of last year due to low existing home inventory opportunities, and improving supply chain functions. We shall see if this will equate locally and reverse the downward trend in new housing starts for our valley.
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Statistics gathered from CREN MLS, criteria are all residential not including mobile or manufactured housing in Montrose. 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 Realtors, CoreLogic data analysis firm, Montrose Association of Realtors, CMU Department of Business and Economics, InfoSparks, YCharts, National Association of Realtors, Cornerstone Home Lending, and the Mortgage Brokers Association. This data is considered accurate but is not guaranteed. Copyright Atha Team LLC 2023. All Rights Reserved.