The Montrose real estate market had its worst month since 2010 with only 17 homes selling in January. And if you lived in the Uncompahgre Valley at the time, you’ll remember that 2010 was the bottom for the valley. The difference between then and now is the catalyst. Essentially, this housing downturn is interest rate driven, rather than easy lending and speculation as seen in 2008. The good news is that rates are most likely going to hold steady or begin to ease, based on recent Federal Reserve comments last week.
The housing market has been frozen for most of last year as rates held above 7%, making monthly payments much more costly for the average home buyer. By mid-December, mortgage rates dipped below 7% and have fluctuated around 6.75% since. Buyer activity since January 1 has picked up with many new and side-line buyers jumping into the market. And based on the last few months, mortgage rates under 7% appear to have buyers awakening from their winter hibernation.
Inventory under $700K has promoted a seller’s market while keeping prices elevated. The 3-month median sales price for Montrose increased 7.8% from the same period last year. The number of days homes sat on the market before receiving an acceptable offer, increased to almost 4 months, or 22% since last year. Although that may seem dramatic, the majority of the market favors the seller with less than 6-months of inventory available under $700K. If rates do begin to thaw, we’re most likely going to see even more home buyers jump back into the market. Looks like the groundhog is right.
Click Here to View Residential Sold – January
