The Montrose real estate market has taken a nose dive since April, according to data tracking the number of buyers physically touring homes listed for sale. More recently, the number of sales in the Montrose region dropped 19% in August and further slumped 40% in September. The strange part is that according to a recent WSJ report, US consumers are still spending, albeit just not on housing.
The housing recession is not isolated to the Western Slope; Denver is also in a housing lull at the moment with mortgage rates now over 7.5% and consumers feeling uneasy about pretty much everything. The combination has caused consumers to delay their home purchases for the foreseeable future. To be fair, people are absolutely still buying and selling homes, but U.S. existing-home sales are running at roughly 4 million per year, the slowest pace since 1995.
So Why are Mortgage Rates so High?
- Iran war + increase in energy costs
- Persistant inflation
- Strong economic activity
- Enormous government spending and borrowing
- Unusually strong investment/ growth in AI development and infrastructure buildout.
These factors are causing investors to dump bonds and demand higher yields, which in-turn directly affects mortgage rates. Essentially, the Iran conflict poured gasoline on an already existing tinder box.
Pricing is More Important than Ever.
If you’re one of the people needing to sell a property, strategic pricing, marketing and a strong real estate advisor by your side are now more important than ever. The market over $500K has, and is, still shifting to a market that favors buyers. Therefore, the price data of homes that sold 6-months ago are now stale. In Montrose, 43% of homes listed have reduced their price; a telling sign of a declining market. September’s data shows an increase in sales price for our area, and that is due to a few higher priced homes somewhat skewing the median sale price. The increasing months of inventory plus the declining number of buyers touring homes points (see charts) to price declines in the future.
Click Here to View Residential Sold – September
