Montrose Market – Year-End Recap for 2021
The Montrose real estate market has experienced its best year since the mid-2000s. Overall, 2021 was just a continuation of summer 2020. Buyers fled coastal states and the Front Range to rural towns including Western Colorado. Montrose just happens to be a prime destination for those looking for a change. Unexpectedly, total home sales in the 2021 calendar year increased 12%. Even more shocking is the massive housing price appreciation of 27% in 2021.
Montrose stacks right up there with red-hot re-location destinations such as Twin Falls, Idaho, which recorded the highest year-over-year increase in the nation at 35.8%. The only difference is that Montrose does not have a Costco.
At the state level, the Mountain West continued to dominate the top spots, with Arizona and Idaho again leading the way with the strongest price growth at 28.8% and 28.7%, respectively, and Utah ranking third at 24.5%. – US Annual Home Price Growth at a Record 18% in October, CoreLogic Reports.
Starting out 2022, our team has experienced a handful of multiple offers situations in the last 10 days alone. This is unique for the dead-of-winter months. The median sales price is near the $400K mark again; as seen during the summer months, homes were selling for 2% over asking in December. Essentially, we have anemic winter inventories with a summer volume of buyers.
Nationally home sales are down 2% year-over-year due to the sheer lack of inventory. The median sales price is hovering at $353,900, up 13.9%. The greatest price appreciation can be seen in the Mountain West and South. Buyer demand has remained steady into the winter months as buyers look to purchase before mortgage rates increase.
Rates spiked a quarter percent this last week (25 basis points) due to several reasons. The first reason is that investors gained a more favorable outlook on the Covid-19 pandemic. Second, the Federal Reserve is expected to reduce its bond-buying program and increase interest rates much earlier than expected. Less fear equals less demand for bonds and mortgage-backed securities, therefore driving up yields on bonds and mortgages. According to the National Association of Realtors economist consensus, projected housing price gains for 2022 is a modest 5.7%.
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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 2022. All Rights Reserved.