The real estate market in the Uncompahgre Valley appears to be on course to repeat yet a third year of lackluster sales. All the while, prices have substantially increased from last winter. The median sale price of a home in Montrose was $459,000 in March. Home prices increased 13.9% annually from the same time period last year. The winter season held strong this year in pricing, which is not typical. Normally, undesirable and left-over homes tend to sell for less in the winter, bringing the median sale price down seasonally. For unknown reasons, prices held steady this winter. Homes are selling for 3.5% below list price which shows some signs of sellers willing to negotiate off price, but inventory is still at 4.4 months, detailing that the market is still overall in favor of sellers.
Encouraging buyers to vacate the sidelines has been a challenge as housing inventory continues to disappoint, while mortgage rates hover at decade highs. With all the commotion surrounding tariffs and the stock market, mortgage rates did react and trend down for a few days as the equity market convulsed. If downward selling pressure in the stock market continues, expect to see mortgage rates get much more reasonable here in the next few months as money moves out of stocks and into bonds.
In the current environment, expect to see the real estate market continue with dismal inventory levels. If tariffs persist, the cost to build a home could directly affect builders, contractors, and finally the end-consumer. One piece of good news is that Canadian Lumber is Exempt from Trump’s Global Reciprocal Tariffs. Though this is one input into a basket of comedies needed to construct a residence, tariffs are considered, by the National Association of Home Builders, to have a potentially detrimental effect on housing affordability. Despite the swings in equity markets and fearful news headlines, real estate is still a very safe haven to park your hard earned cash in a volatile environment.
Click Here to View Residential Sold – March
