The summer housing market in the Montrose Region has produced activity very similar to last summer. Sales for the last 3-months are relatively flat, though home prices continue to climb due to low inventory. Taking a wider view of the market, home sales are down 29% from September of 2022. Further, the winter and spring markets were quite dismal, with a downward trend of activity between April and June. July and August buyer demand picked back up, though the market is fairly sluggish all things considered.
The majority of real estate transactions, 78% to be exact, are occurring under the $600K price mark. This is in line with previous housing trends in the Uncompahgre Valley. The market under this price mark is still in favor of sellers, who have the upper hand advantage due to fewer choices. The real estate market between $600K – $1M currently is balanced with an equal number of buyers and sellers.
Home prices continue to rise despite mortgage rates dancing between 6.5% and 7.5% for the last 12-months. Home prices in Montrose increased 10% from the summer of last year. Obviously, this is great for existing homeowners but challenging for first-time home buyers. The good news for buyers is that current mortgage rates are the lowest they’ve been in the last 12-months, recently decreasing to 6.2% this week. Home purchase applications have directly responded to this favorable rate scenario, rising 3% this week.
Nationally, the median existing-home sales price elevated 4.2% from July 2023 to $422,600, the 13th consecutive month of year-over-year price gains. Montrose Colorado has continued to outpace the national home price median along with the year-over-year percentage gains. There are no housing bubbles is insight due to persistently low inventory. Montrose continues to attract buyers moving from outside regions, specifically the Denver Front Range. This demand is what continues to elevate and sustain home prices in the Uncompahgre Valley.
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