Real estate market activity in the Montrose and Uncompahgre Valley is hitting bumps as it attempts to match the previous 2-years of activity. Heading into the prime spring selling season of 2025, consumers are navigating the housing market with heightened caution as tariff announcements in early April rattled bond and equity markets.
Housing prices in the Uncompahgre Valley are still appreciating, gaining 4.8% over the last 12-months, at a median sale price of $424,000. Meanwhile, inventory levels are increasing, giving buyers more options to choose from. Homes priced between $400-600K are nearing the 6-month inventory mark, creating a possible new trend of a balanced market of equal buyers and sellers. This increase in inventory is not necessarily due to lack of desire, but rather affordability constraints as mortgage rates are holding near 7% due to the convulsions in the US 10-year treasury bond market.
Unfortunately, expectations are fading for mortgage rate relief as 10-year treasury yields may be loosing some safe haven appeal. Demand for US treasures relative to supply is the cause of this prolonged trend of mortgage rates near 7%.
As we enter the prime selling season, mortgage rate volatility and fear surrounding the stock market have caused many would-be buyers and sellers to hold tight over the last month. As the stock market has somewhat recovered and consumers become numb to the same fearful headlines, more consumers have come back into the market to transact real estate over the last week.
Luxury markets such as Vail and Telluride have taken a hit in April as many buyers cancelled purchase contracts due to fears surrounding equity markets and tariffs. Property sales in each one of these premier markets dropped approximately 23% in April. Taking the housing market into consideration as a whole, all types of buyers have been quite fearful and cautious over the last month. With that said, real estate as a safe hedge in times of global volatility is proven.
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