Montrose is displaying typical seasonal patterns as evidenced in the market as families head back to school and look toward the holiday season ahead. Prices and demand are still strong with the typical home going under contract within the first two weeks of being placed on the market. The median days that a home is on the market is down 20% from last year, providing evidence of the enduring housing demand.
The median sales price is slightly down from last month, sitting at $389,900. The three-month median sales price has increased a staggering 42% from the same period last year. Keep in mind that this comparison is essentially a pre-covid market rush vs. a post-covid market comparison.
The median existing home price is $356,700, up 14.9% from a year earlier while inventory is down 1.5%. Housing supply is beginning to flatten heading into the fall as some buyers take to the sidelines in their home search.
Mortgage rates for a 30-year fixed mortgage jumped 11 Basis Points to 3.14% over the last few weeks.
Inflation is the key indicator to watch as we look into the next year’s real estate market projections. If inflation is here to stay, the Fed will be forced to taper their bond-buying program and therefore force 10-year treasuries and mortgage rates higher. This is important because low borrowing costs and interest rates for residential mortgages have empowered home buyers to afford higher-priced homes at lower monthly payments over the last few years. If borrowing costs increase, buyer affordability will decrease and possibly affect real estate prices and demand. We will have a better idea of the federal reserve outlook and bond tapering program come November.
Buyer affordability is already at an all-time low, with the median price of a home equating to 32.1% of typical household expenditures. This, again, could affect home prices and buyer demand if household incomes do not increase or if housing prices continue to trend upward.
The good news is that existing homeowners have benefited from the substantial increase in their home equity. Consequently, it’s the first-time homebuyers that affordability continues to deeply impact.
Thinking about Buying or Selling? Call or Text: 970-417-9375
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 2021. All Rights Reserved.