Montrose Real Estate Market Snapshot
• Inventory increased from 6 to 8 months, and homes are taking longer to sell with days on market rising about 9%.
• Home prices remain stable; the February median sale price reached $525,000, up 1.9% year over year.
• Limited new winter listings have kept buyers focused on the same inventory
The Montrose real estate market has slowed even further since last winter. Months of inventory have increased from six to eight months while the number of days homes sit before receiving an acceptable offer has increased by 9%. Essentially, homes in the Uncompahgre Valley took longer to sell this past winter. If this trend continues into the spring and summer, expect some softening in home prices, specifically above the $500K mark.
Home prices have stayed relatively flat over the last 12 months, with the median sale price for February increasing to $525K. Overall, prices have increased 1.9% since last February.
Very few new listings have hit the market this winter, therefore the few buyers actively searching for a home are all shopping in the same stagnant inventory. We expect the market to shift as more inventory hits the market this spring.
Interest rates have been slowly declining over the past 12-months. And the 6% mark truly feels like the threshold of buyer momentum. We’ve even seen some of our clients lock rates closer to 5.5% with specific lenders and programs (reach out to us for details). If mortgage rates continue to stay around 6%, we expect market momentum to increase.
The Denver Front Range market has been increasing in inventory. Though historically, inventory levels there are still low (under 6 months), buyers are gaining more options as sellers sit longer and become more realistic on pricing. A spring rebound in the market may be forming if interest rates keep the same trajectory. This matters for the Western Slope as many home buyers hail from the Denver Front Range. We’re experiencing first hand the drag of the Denver market, as relocating home buyers continue to purchase in our area. Look for an increase in market activity for the Front Range to directly translate into an uptick in our local market.
Seller Perspective
• Pricing correctly from the start is critical, as buyers now have more options and are taking longer to make decisions.
• Homes that show well and are marketed effectively are still selling, while overpriced homes tend to sit and require price reductions.
• Despite slower activity, home values remain stable, offering sellers an opportunity to capture strong equity.
Buyer Perspective
• Buyers currently have more negotiating power than in recent years as inventory rises and homes stay on the market longer.
• Mortgage rates trending near the 6% range may bring additional buyers back into the market this year.
• With less competition and more time to evaluate properties, buyers may find this to be one of the better purchasing opportunities in recent years.
Click Here to View Residential Sold – February
