Looking back and comparing 2020 with 2019, we can see some very remarkable trends in the housing market. The 3-month housing price trend for the Montrose market has realized an astonishing 20.2% spike. But, comparing the 12-month year-over-year trends provides a broader view of the market’s activity beyond last quarter’s market exuberance. Housing prices, year over year, gained 10.4% for 2020, which is a phenomenal gain in housing equity for a single year.
Home sales, when compared with 2019, were relatively level. The number of homes sold in the Montrose area for 2020 totaled 783 units, compared with 740 units in the prior year. Surprisingly, lot sales under 3 acres sold for 10% less than the previous year at a median sale price of $50,000, while the actual number of lot sales increased by 15%.
Housing inventory levels are down a whopping 49% from December of last year, evidence of just how enthusiastic the buyer activity has been since September. The depression in market activity through February, March, and April’s lockdowns received a corresponding boost from record sales in September, October, and November. One of the most notable trends in 2020 is a shift from a buyer’s market to a seller’s market in the upper-end price ranges.
Builder confidence experienced a major roller coaster ride this year as the NAHB index plummeted to 30 and then subsequently developed into a peak of 90 (out of 100) in November.
What exactly is fueling this exuberance in the Montrose housing market? Three terms best explain the buyer frenzy that we’re seeing on the Colorado Western Slope are:
Feds: The 10-year Treasury Bonds are indirectly driving the incredibly low mortgage rates, causing homeowners to pursue new home purchases or refinances in record numbers.
Fear: Many people in urban areas are fearful that they could be locked-down again in their 1-bedroom flat, or 1,200 sq. ft. home with 3 kids and no backyard (while working and schooling from home – over Zoom). The riots and urban unrest from this spring have also sent people running for the hills, literally.
Freedom: Americans are re-thinking their priorities and what homes mean to them. This has led many people to pursue larger homes in the suburbs or rural areas, with more living space inside and outside.
As we know so many have had challenges with housing and job changes in 2020, we wanted to reach out to our friends first and let you know we have a job opening on our team! As the Atha Team keeps growing, we are looking for a Buyer’s Agent to help serve our clients. If you or anyone you know is looking to venture into a new field of work or has any real estate experience, we would love to get in touch. For further information on the job specifications, follow this link to view and apply if desired. Feel free to give us a call with any questions or recommendations.
Thinking about Buying or Selling? Call or Text: 970-417-9375
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, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2021. All Rights Reserved.