January 2017 Market Update – National & Montrose CO Real Estate
January 2017 – Montrose CO Real Estate Market Update
Montrose CO Real Estate Market
Happy New Year and welcome to your 2017 Montrose Colorado Real Estate Market Update.
I’m going to give you a quarterly snapshot of 2016 in Montrose, along with an update on land sales in Montrose, followed by a national real estate market summary.
The Montrose Colorado real estate market was certainly an upward roller coaster in 2016. In the 1st quarter of 2016, 12% more home sold, but the median selling price was down by 2%.We experienced large gains again in the 2nd quarter with a 6% increase in sales and a price increase of 9%. The 3rd quarter threw us a curve ball with a decrease of 2% in homes sold, while prices were still up year-over-year by 7%.
Lastly, the 4th quarter was the most unusual in 2016. The Montrose real estate market experienced a 25% jump in residential units sold, along with an 8% price increase in the 4th quarter. We believe that the unusually warm fall season weather coupled with a low housing inventory led to this heightened market activity. The median sale price for the 4th quarter of 2016 was $209,000 versus $192,000 in 2015.
Vacant land sales are up by 9% and the median price is at $44,000. This shows us that the bulk of land sales are residential lots in town or 1-3 acre residential building parcels surrounding Montrose county Colorado.
We are still seeing low inventory numbers this winter in the Montrose housing market. Small outcroppings of speculation and new build homes are appearing, but these numbers are far from volumes strong enough to satisfy the robust buyer demand. The hottest priced homes are still under $300,000.
National Real Estate Market
On a national level, the median sales price for this month is at $232,200. This is up 6% from last year, but down a bit from last month.
The interest rate on a 30 year fixed mortgage continues to creep up and is at about 4.25%.
Denver Colorado, along with many regions in the US, has failed to match home price gains with wage growth. This has created a real problem for affordability in Colorado and the nation as a whole. Modest gains are forecasted for the 2017 housing market due to rising interest rates and declining consumer confidence within the housing sector. With this said, the real estate market is still a bright spot within the US economic recovery. (Home prices drop in metro Denver as affordability becomes an issue).
Thank you and have a fantastic start to your year! – The Atha Team
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Copyright 2016 Keller Williams Realty, Inc and Keller Williams Colorado West Realty, LLC. 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 Realtor, CoreLogic data analysis firm, Montrose Association of Realtors, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team, LLC 2016. All Rights Reserved.