Will Local Real Estate Rise or Fall? – February Real Estate Stats
Montrose Colorado’s residential housing market experienced relatively high numbers for January sales. Homes sold for almost 29% more in January 2018 than in January 2017 and we saw 13% more sales last month than a year ago. Are these numbers ramping up due to the unseasonably high temperatures or is it a result of a steady rising economy and growing consumer confidence? There are still many first-time home buyers entering the Montrose market as well as buyers relocating due to work, retirement or simply being drawn to our beautiful area. The question is: Will the market continue to rise or will it start to flatten out?
Many hot markets around the country are still having multiple offers and sales over asking price due to the low inventory and huge demand. “Home prices continue to rise three times faster than the rate of inflation” [David M. Blitzer, Managing Director at S&P Dow Jones]. While all this seems encouraging to potential sellers, according to USA Today, the rising costs and tax-law changes may alter the momentum from 2017. We could see a downturn in the national market due to potentially increasing 30-year mortgage rates, investors that have been flipping houses for profit being more cautious and Baby Boomers desiring to remain in their current homes. Higher priced home sales may be hit the hardest according to the Washington Post, but first-time home buyers won’t be deterred from seeking homes with less square footage.
The good news? The Western Slope is usually 1-2 years behind the national market, so we expect the real estate boom to continue. With the new tax changes benefiting builders and first-time home buyers, new construction is gaining momentum. In conclusion, the national market may be getting ready to peak and cool down, however western Colorado hasn’t seen the end of multiple offer transactions from eager buyers and the sustained pent-up demand.
Copyright 2017-2021 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, CMU Department of Business and Economics, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2017-2021. All Rights Reserved.