The Montrose real estate market is primed for a spring revival as housing inventory volumes increase. The housing marketplace seems to be shifting into a buyer’s market over the $500K price range. With fewer buyers making acceptable offers, more properties have been lingering on the market in the upper-end price range during the winter months.
Unit sales of homes year-over-year diminished 36% in March, causing concern for a deeper slowdown in the Montrose real estate market. Homes are also taking 2.5 weeks longer to procure an acceptable offer. Opportunities for home buyers may arise if inventory continues to stagnate over $500K.
Keep in mind this all may change as we enter the typical busy season for real estate. A traditional spring resurgence of real estate activity may put the higher-end market back into balance. Further, the housing market under $500K is still ultra-competitive with multiple offers still occurring, albeit less often than previous years.
Interest rates are still making purchase decisions for all buyers much more challenging. Historically, mortgage rates, currently around 7%, are at the top-end of their average (5-7% range). Yet the median sale price of $422,050 in March makes the monthly payment much more daunting. The alternative is to wait until interest rates come down, but recent signaling from the Federal Reserve is hinting that we may not see any substantial decrease in the cost of money in 2024. Hopeful consumers looking to, “wait out the market” may be in for a stark dose of reality. Despite all the challenges facing home owners and first-time home buyers, the cost of waiting may be even more expensive in the long-run. The 3-month median home price for the Montrose area increased 3.6% from the previous period last year. Looking ahead at dashboard metrics, 2024 could produce a repeat of the 2023 housing market.
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