The real estate market is experiencing a typical winter with cool sales and lower inventory levels. Colorado Front Range buyers are avoiding the winter passes while local residents wait for spring to list. Buyers are adjusting their expectations in the new rate environment even though monthly payments are significantly higher than 12 months earlier. Some buyers are sitting on the sidelines, expecting mortgage rates to recede further. The 3-month trend of unit sales in the Montrose area is down 37% from last year. Yet homes are still selling for 97% of asking price, which may be due to anemic inventory levels. The median sales price is at $387,450, down 1.3% from $400,000 last January.
January 2022 had a record low level of housing inventory with 61 properties available. January of this year had 113 properties available for sale. Current inventory is still drastically muted relative to a healthy pre-pandemic marketplace. Anticipation for more inventory to come online this spring seems reasonable, especially if the local market shifts back to its traditional seasonality. We are currently in the middle of that market shift.
Since we’re in a changing environment, it’s hard to predict what’s transpiring beyond the basic numbers. One thing is for certain, interest rates and the Federal Reserve are dictating the future of this market conjuncture. Mortgage rates drive/demand, affecting inventory and prices.
Mortgage applications (a bell-weather of future buyer demand) spiked in January as mortgage rates dipped near 6%. If mortgage rates stay under 6.5%, the market may stay relatively active. If rates head toward 7% again, or even higher, anticipate a further unit sale drop north of the 37% we’re at currently.
Prices are up 2.3% from the previous year with the median sales price at $366,900. Unit sales, similar to Montrose, are down 34%. Housing inventory is up 10%.
Click Here to View Residential Sold – January
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, Cornerstone Home Lending, and the Mortgage Brokers Association. This data is considered accurate but is not guaranteed. Copyright Atha Team LLC 2023. All Rights Reserved.