A quick perusal of the graphs shows that despite the concern and ‘the sky is falling’ narrative preached by many, homes in Montrose still went up in price this past year relative to 2022. Yet unit sales continue to decrease, averaging over 23% over the last 3 months. The main consideration here is likely the still high-interest rates (relative to much of the last few years), though rates have improved overall over the last month. Some buyers remain optimistic that this trend will continue as we head into the new year. In Montrose, we essentially remain in a market of declining unit sales (due to interest rates and other factors) yet appreciating prices (due to continued low inventory). Further examination of months of available inventory shows that Montrose technically remains a seller’s market in nearly all price ranges.
The new listing market has experienced yet another lethargic month in December, furthering the downturn in unit sales. We still see properties that are priced well and in good condition going under contract relatively quickly, proving that there are buyers out there who are simply waiting to find the right home. A leading indicator of what January and beyond could look like is how many properties went under contract this month, which came in at 28, the lowest amount since December of 2013. That said, it is very common for buyers and sellers to postpone real estate plans until after the holiday season, and our team has seen a significant increase in ‘the phone ringing’ as we say since the new year.
There are numerous factors which could significantly influence the climate of real estate as we head into the new year. We remain cautiously optimistic, aware that we are driving in the fog as we head in 2024. Granted, we’ve been ‘driving in the fog’ since Covid, approaching nearly 4 years ago since the shutdowns. Inflation and interest rates appearing to be going down, along with an election year getting underway should yield an interesting year of developments for real estate. Our team has commented that if rates went significantly down in the next 3-6 months, we could potentially be back to multiple offers and bidding wars. We also have our eyes on the added question of current lawsuits regarding the National Association of Realtors, and potential changes that could be coming down the pipeline in terms of how realtors work and do business with clients.
In addition, we are seeing a very interesting trend develop, as many homebuyers of all price ranges are ditching dreams of home ownership (at least currently) for the convenience of renting and even maintaining a certain standard of living (eating out, travel, experiences). A good summary of the choices and factors these buyers are considering can be found here. This trend has also influenced higher net-worth individuals and those in luxury markets. While multi-millionaires in Aspen are not always relatable, this article highlights the reality that many are choosing experiences over real estate.
If you have any questions about these things, or have questions about buying or selling on the western slope, we would absolutely love to hear from you. And Happy New Year!
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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 2023. All Rights Reserved.