The Montrose real estate market continued to slow in August as home sales plummeted in the upper-tier price ranges. The majority of home sales last month (70%), occurred in the sub $600K price range. Meanwhile, only 10 homes sold in Montrose between $600K and $1M in August. Denver is the primary feeder market for the Uncompahgre Valley, and sales in Denver are the second worst behind Seattle out of the 50 metros tracked by Realtor.com. Denver home sales were down 17% year-over-year. This drop was especially compounded in the Denver condo market. Therefore, many buyers destined for the Western Slope have paused their home purchase until their home in Denver sells; the domino effect is real.
Why are home sales slowing so dramatically in both Montrose and Denver, while home prices are still holding relatively steady? First off, many home sellers are anchored in past sales price data, and are therefore reluctant—even hostile—to any real-time data suggesting home prices are actively falling.
The reality is, the “need to sell” sellers, who successfully sell their home, will become the new sale price data when next spring rolls around. In the meantime though, this transition period is causing a lot of frustration with the home sellers that are not yet ready to capitulate. This tension is what’s causing the stagnant home sales.
Some sellers are indeed aligning with the market: In Denver, 31% of active listings had a price reduction in August. That was the highest percentage among the 50 largest U.S. metro areas tracked by Realtor.com. Altos Research showed in August, a 42% price reduction for active listings in Montrose. This is a clear sign that sellers are increasingly having to respond to a more price-sensitive and selective buyer pool.
And with recent mortgage rate peaks, we’re now in the middle of a market transition.
Click Here to View Residential Sold – August
