Montrose Real Estate Market
In what is typically the ‘harvest season’ of real estate on the western slope, the Montrose real estate market experienced yet another relatively flat month, with unit sales in July down approximately 10% from last year, and days on market and available inventory both increasing. Yet, since their peak last summer, interest rates have been gently trending downward. Wouldn’t that suggest that sales should be increasing, with all the pent up demand finally being allowed some breathing room? To add to the market confusion, prices in Montrose are still very firm and while they have not shown signs of spiking through the roof, they have also not shown signs of going down.
With all this being said, pricing strategy and robust marketing is still getting homes sold. We were able to put 3 homes on the market this week between the price ranges of $350 – $550k, and all 3 of them have already been receiving showings. The average sales price in Montrose still hovers around $425k, which still is considered by many as affordable, relative to many other markets in Colorado. A colleague made a comment to me recently which rings true – the market really shifts over and under the $500k threshold. If you examine the different price ranges in months of available inventory, you will see more of what would be considered a balanced market over $500k, with averages being between 4-7 months. Once you get under $500k, inventory drops significantly and the market becomes much more competitive. Buyers under $500k will most often need to temper expectations and often compromise, and buyers over that amount will have much more to choose from. And if you’re one of those lucky buyers in the $750k and above price range, it is safe to say you can pretty much get anything you want in the Montrose valley. This is one of the eternal factors in why the Montrose real estate market has remained strong through high’s and low’s – who wants to live in a 1,000 sq foot 100-year old home in downtown Denver on a tiny city lot with no views when you can gaze upon the Rocky Mountains in a mansion for close to the same price point?
National Real Estate Market
An interesting trend is developing on the national real estate market scene, with cash transactions increasing to the highest percentage since 2014. Whether it be primary residences or 2nd homes purchases, this strong cash buyer contingent continues to be one of the driving factors behind national prices remaining high, despite slowing sales in many markets around the country. If 1 in every 3 buyers is currently purchasing in cash, that alone serves to bolster the real estate market to some degree in preventing any sort of drop off for the time being.
The ‘driving in the fog’ analogy of the current real estate market has never been more accurate as numerous factors seem to be influencing the real estate market. Whether the latest stock market scare of the last week proves to be a blip on the screen or the sign of more significant activity to come, one thing is for sure. While investing in real estate is still considered by many to be ‘boring,’ hard assets have proven their long term worth time and time again. Whether it is you buying your first home, or working hard and saving to purchase a rental property, it is the workhorse of the economy in many ways, and still the most significant and reliable way most Americans build wealth for their family.
Click Here to View Residential Sold – July
