Montrose Real Estate Market Snapshot
- Transaction volume remains historically low, comparable to 2014 levels, despite year-over-year stability in December sales
- Buyer uncertainty and hesitation are actively influencing offer behavior and contract outcomes
- Prices rose 6.3% year-over-year, though growth is expected to stabilize unless mortgage rates fall meaningfully below 6%
The Montrose real estate market in December mirrored the previous year in unit sales though other factors set it apart headed into the new year. What’s consistent in our market is the overall lack of real estate transactions. The current number home sales for 2025 is comparable to 2014, in which the housing market was still recovering from the Great Recession.
We’re still technically in a sellers market, though it feels more like a balanced (equal buyer and seller) market. In December, homes in Montrose were listed on the market for 3.5 months before accepting an offer. This is actually not a terrible number though. Because there are so few buyers out there, it feels like a long time. This trend is especially pronounced as listed homes in all price ranges are only experiencing around 3 showings a month.
Golden handcuffs are still keeping homeowners stuck in place and therefore limiting the number of homes available for sale. Inversely and also corralled, buyers are stuck anxiously recalculating monthly payments due to interest rates relative to home prices, ie. affordability.
Fear and apprehension is unfortunately very real and tangible in our current market. Uncertainty, as reflected in a very low consumer confidence, can absolutely be felt in the market. This translates into buyer duplicity; drafting a competitive offer to only then decide to not submit the offer. Some buyers are looking for ways to back out once under contract, due to fear and apprehension.
Home prices are up 6.3% from the previous year. Driving up that percentage for December were five homes sales near the $1M mark. With December aside, we expect home price growth to stabilize as they did in 2025, unless mortgage rates dip below 6%. Mortgage rates have stabilized since September, hovering above 6.2% for the last 4 months. Wells Fargo’s mortgage rate forecast for 2026 predicts 30-year fixed rates will average around 6.18% for 2026. Mirroring the trend since September.
Headed into 2026 we do expect life circumstances to eventually break the golden handcuffs, as people can only delay critical life decisions, like moving, for so long.
Navigating the Market: Buyer and Seller Perspectives
Buyers
- You have more time and leverage than in recent years, but hesitation can cost opportunities in well-priced homes
- Interest rates appear relatively stable, making payment planning more predictable than earlier in the year
- The best opportunities are emerging through negotiation, inspection strategy, and price discipline rather than waiting for a market “crash”
Sellers
- Pricing and presentation matter more than ever; the market no longer forgives over-optimism
- Homes that are priced correctly and well-prepared still sell, but patience and flexibility are often required
- Many sellers are choosing to wait, but life events will increasingly drive listings in 2026
Click Here to View Residential Sold – December
