The Montrose real estate market is adjusting to find its new stride amidst several recent changes over the past several months. Buyers, sellers, real estate agents, and mortgage lenders are all attempting to make sense of the market, all the while reeling from the recent and fast-paced fluctuations. Mortgage rates have been extremely volatile over the past few months. What has changed is obvious, which is mortgage rate increases, which have in turn knocked some buyers out of the market and caused a decrease in buyer demand for housing.
The most stunning data at first glance are unit sales in July, which are down 46% from July of 2021. This is quite a daunting drop for July if isolated on its own. But as one continues to track the lead indicator of pending unit sales, which has been about 20 per week over the past 5 weeks, it’s becoming clear that the market has picked right back up from its mid-June lull. One could conclude that the drop in July unit sales is directly correlated to the initial shock to consumers’ outlook when rates hit a high in June combined with the Fed’s rate increase announcement around the same time.
How can you say that the market is strong when unit sales dropped 46% from July of 2021? First off, supply is increasing but still remains at historic lows. Rather than taking 2 days to go under contract after listing a home for sale, it’s taking about 2 months. Keep in mind that 2 days was never healthy to begin with. A healthy market is considered 6 month’s supply of housing inventory. Currently, Montrose is at 3.7 months of housing supply. Secondly, homes in July sold for 103% of the asking price! This seems insane given all talk about a market crash and rising interest rates but the numbers don’t lie, there is still a strong demand for housing.
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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.