The Montrose market is in the midst of a shift toward a more balanced seller’s market. The most recent rate increases have sent shivers down the spines of borrowers as mortgage rates now float near 6%. Keep in mind that a 6% mortgage rate is nothing noteworthy relative to the historic average of 8%. But it is significant when combined with the current price of housing, which has increased 65% in Montrose since June of 2019. This is creating sticker shock in monthly mortgage payments for buyers, who are reassessing what it will cost to own a home after rates nearly doubled since December.
It’s unlikely that the median sales price of a home in Montrose Colorado will plummet, but it seems logical to believe that the pace of homes selling will cool. New construction is typically a ceiling for existing home prices, and unfortunately, new construction inputs show no signs of decreasing in cost.
Essentially, the Montrose market, along with the national market, is seeing a transition from a white-hot market to an orange-hot market. This shift is most pronounced in the data showing months of available inventory, which has increased from an average of 2.4 in May to 3 months of available inventory in June.
For the long-term picture, this is actually good news for the housing market as a whole. Buyers will have more homes to choose from, giving them more time to shop for a home, and in a less competitive environment. Another way of looking at this is this: we’re headed toward a more normal or healthy market when considering home inventory and buyer competition.
Nationally, the time to sell a home and the number of properties available for sale is increasing. As the 6% mortgage rate becomes reality, buyers are resharpening their pencils and reassessing what they can afford. Unit sales are down 8.6% from a year earlier, while housing inventory has increased.
According to the NAR Chief Economist Lawrence Yun, the housing market has returned to pre-pandemic 2019 levels. Single-family and condominium sales are now at parity, suggesting that the urban flight and suburban preference of buyers that were induced by riots and lockdowns, has receded.
Click Here to View Residential Sold – June
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 2022. All Rights Reserved.