The Montrose Colorado real estate market seems to be repeating a third year of dismal buying and selling activity. Due to mortgage rates near the 7% range since the spring of 2023, we’re now close to half way through 2025 with unit sales looking exactly the same as the previous two years. With the average sale price of a home in Montrose holding at $480K, monthly payments are discouraging some buyers who have the option to wait until rates possibly subside.
On a positive note, with regard to home buyers and the overall market health, inventory levels are increasing. This is especially pronounced in the $500-700K price range. Therefore, we’re seeing properties sell for 3% less off the asking price on average. At the same time, properties that are priced competitively, and are broadly desirable, are still receiving multiple offers. In short, the real estate market has progressed into a more balanced market of buyers and sellers, with sellers still having a slight upper hand in negotiations.
The national market is experiencing a considerable increase in housing inventory, with the inventory of unsold existing homes jumping 9% from the previous month.
The luxury housing market in the valley is strong, with three homes over a million selling in May. Buyers in this upper-end range have high expectations, and are willing to purchase if the right property becomes available. There is also considerable lack of newly constructed homes in the $900+ market as most developers see the risk too great to build a spec home above $800K.
Mortgage rates are projected to hold steady for the rest of 2025 as equity and bond markets try to understand and predict the effects and severity of tariffs. With this in mind, the expectations of a real estate market rebound are fickle. Although home prices in Montrose are at parity from last year, there is still a real lack of willing and able consumers ready to make a move. This hesitancy is reflected in the 30% drop in consumer confidence over the last 6-months.
Although mortgage rates are high and activity is relatively slow, there’s really no better place to park cash than in real estate: The Ultra Wealthy Are Riding Out the [Stock] Market Chaos in Luxury Real Estate.
Click Here to View Residential Sold – May
