Are Low Mortgage Rates Encouraging Buyers? – July Real Estate Stats
As Montrose real estate prices remain on an upward trend, local home buyers are nurturing a careful watch on the market’s trajectory. The median home sales price rose 4.86% in the last 3 months alone, from $262,500 to $275,900. As the median sale price continues to increase, the number of homes sold has decreased by 12.7% in July, compared to the previous month. Days on market increased by approximately 5% over the last year. Given the current saturation rates, the continuing forecast is still pointing toward a strong seller’s market.
$100-200K price range: 1.8 month supply
$200-300k price range: 3.3 month supply
$300-400k price range: 5.5 month supply
$400-500k price range: 5.6 Month supply
$500k-600K price range: 15.4 month supply
According to the National Association of Realtors, a healthy market (an equal number of buyers and sellers) is considered 6-months.
Sellers maintain their leverage in this market as the median sales price increases to an all time high of $285,700, up 4.2% from this same time last year. The National Association of Realtors states that this price increase marks the 88th straight month (7.3 years) of year-over-year gains. Both inventory levels and total sales are down compared to this time last year with inventory falling 1.7% and sales as a whole down 2.2%.
With home prices increasing, there is an inevitable spike in rental costs as well. Many buyers, especially young buyers, are renters rather than homeowners and face challenges to getting a down payment together or develop the credit needed for a preliminary approval from a lender. With a median age of 46 for home buyers, the Nation Association of Realtors shows that in 2018 only 2% of home buyers were between the ages of 18-24. From 2000 to 2017 the median home price rose 21% while the median household income increased by a dismal 2%.
Although prices are increasing, mortgage rates are continuing to drop. The 30-year fixed conventional mortgage rates are currently as low as 3.80%, making it much more sensible to invest in real estate (Existing-Home Sales Falter 1.7% in June, Financial Crisis Yields a Generation of Renters).
Thinking about Buying or Selling? Call or Text: 970-417-9375
Statistics gathered from CREN MLS, criteria is all residential not including mobile or manufactured housing in Montrose. Copyright 2019-2021 Keller Williams Colorado West Realty, LLC. 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 Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, CMU Department of Business and Economics, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2019-2021. All Rights Reserved.