The Montrose real estate market is currently experiencing a traditional winter season in relation to market activity, similar to 2017 and 2018. Housing inventory has increased 22.5% since its low in March but still remains tight with 3.1 months of inventory in November.
Home prices in Montrose are down 10% from a peak of $450K in March but up 5.6% from 12 months ago. Median sale prices have been lingering in the low $400K range since the spring and currently rest at $407K. As mentioned by Economist, Dr. Nathan Perry, at the Montrose Economic Forum, prices will not come down much unless inventory surpasses the 6-month inventory mark. A buyer’s market, where buyers hold the power to negotiate price, typically occurs in a housing market with over 6-months of inventory. November’s inventory level hovers a little over 3 months. Keep in mind that inventory ultimately determines price.
Crystal ball projections are anyone’s guess, but leading indicators point to a protracted winter in the real estate market. The Federal Reserve again increased the cost to borrow money yesterday, affecting mortgage rates, which remain 2x higher than in January. As a result, weekly mortgage application rates over the past few months have been down anywhere from 30% to 50%. This translates into a bell weather for diminishing home sales heading into 2023.
Unit sales of homes in Montrose are down 27.5% from the same period last year, mirroring the drop in mortgage applications. As prices of homes level out and the urban flight of 2020/2021 recedes, the market looks to be increasing its inventory as buyers recalibrate their ability to purchase real estate in a high-interest rate environment.
Similar to the Montrose valley, unit sales nationally are down 28.4% with prices still up 6.6% from a year earlier. Inventories are still relatively low at 3.3 months with strong demand in specific price ranges. The median sale price of existing homes is $379,100.
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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 2022. All Rights Reserved.