The Montrose Colorado real estate market is shifting into the end of its third year of muted housing sales. Many families have decided to stay put, with interest rates and affordability at a record high. Finishing out 2025, we’re now seeing evidence of price softening, which the market has not experienced in a very long time.
New housing inventory (new homes listed for sale) sputtered and failed to reach the volume of what’s been typical over the last few summers. Meanwhile, the number of buyers touring homes has plummeted over the last 3-years, reaching a new low not seen since 2015.
So what exactly is happening?
Essentially, there are less homes for sale and what seems to be even fewer buyers looking for homes. This culmination of factors has led to a trend of slowly increasing housing inventory since mortgage rates increased. Homes listed in the 81403 area have seen a pronounced increase of housing inventory since May of this year, leaving the 81401 area in the dust. Homes in the typically less expensive area of 81401 could follow suit if unsold inventory sits idle headed into the winter season.
Because of these factors, and taking into consideration the three month sale price average, home prices in the Uncompahgre Valley decreased 3.2% over the last 12-months. This is the first real price softening we’ve seen in a while. Traditionally, we typically see prices come down in the winter months due seasonality of the market. This could pose as a sign of more softening to come, due to the fact that this price decrease occurred over the summer and early fall and not during the winter months.
With all this taken into account, the housing market may be shifting into a buyers market, but based on inventory levels, this possible new trend can only be observed in some parts of the upper-mid price ranges between $600-800K.
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