Numbers Thinning
The Montrose real estate market continues to climb in value as inventory numbers thin. The month of August experienced an 8% gain in price from August of 2015 while the median days on the market dropped 22% from the same time last year. Inventory has decreased since July as homes have sold or expired.
The rising home prices coupled with security values (in Montrose Colorado and the Nation) are being attributed to the record high US household net worth (U.S. Household Wealth Rises to Record).
There were 39 homes that sold between $150 and $250K in August. This price range accounted for half of all homes sold this past month. In the middle to upper-end price range, Cobble Creek experienced some improved action as 33% of the homes between $300 and $400K that sold in August were in Cobble Creek. Only 2 homes over $400K (and under 2 acres) sold this past month. Though the upper-end price range in still soft nation wide, homes in this price range are still moving considerably relative to last year.
Home Appraisals
Some home appraisals have been coming in above or below market value. The former is making for sticky negotiations as homes continue to gain equity value due to supply and demand while appraisers struggle to find adequate comparables to justify purchase prices. Most home appraisals though are coming in near negotiated purchase prices.
New builds are continuing to speckle the Uncompahgre valley, mostly in the form of custom builds. New speculation homes in Montrose are beginning to pop-up in American Village, Bear Creek, Riverstone, Woodlands Pond, Eagle Landing and Waterfall Canyon subdivisions.
Rental Market
Rental markets are also feeling the squeeze of low inventory. Rents have sky rocked since the crash. Homes that once rented for $800 are now renting for $1200 and $1300. Realistically, it’s a much better decision to purchase a home now, rather than rent, if one plans on staying in Montrose for longer than 2.5 years (which is the break-even point average to recoup fees incurred from purchasing a home).
Thinking about Buying or Selling? Call or Text: 970-417-9375
Copyright 2016 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, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2016. All Rights Reserved.