Is Timing the Housing Market a Catch-22? – March Real Estate Stats

The Montrose real estate market is beginning to thaw as mortgage rates dip back under 7%. Home sales slightly increased from a year earlier and home purchase applications are up 10.6% as of recent. Mortgage rates receded from their 7% threshold over the past 3-weeks while first-time home buyers have been particularly responsive to mortgage rate declines. If rates hold under 7%, it’s reasonable to expect a more active spring housing market relative to last year.

The market is a little bit of a catch-22 environment for buyers due to the limited supply of homes. If rates decrease, home prices are expected to increase, as lower mortgage rates will induce an increase of buyers. This will then place upward pressure on home prices and added competition for the limited supply of product. Therein lies the catch-22 of, “waiting the market out”. Home buyers are either going to settle for a higher home price or a higher mortgage rate. Long-and-short, prices are projected to steadily rise. The median sale price in Montrose is $417,500, a 6% increase from the same period last year.

Currently, Montrose Colorado has around 140 homes available for sale. Which is a better selection in comparison to last February, when only 90 homes were available for purchase. The numbers are showing that inventory is a little higher than what most of us are feeling. This discrepancy is due to the lag of numbers in the typically slower winter months. The number of days a home sits on the market until a favorable offer is accepted increased 28% over the winter months as well. This number is expected to come down again if rates hold below the 7% threshold.

With the big picture in mind, real estate in Montrose is still a fantastic avenue to build wealth. Waiting out the market may lead to paying more for less in the future.

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