What Happened in 2017? – Recap of the Montrose Housing Market
2017 Recap of the Montrose Housing Market
The Montrose Colorado real estate market held par with the previous 4 years of growth through 2017. The market experienced price gains of approximately 7% over the calendar year, keeping up with the previous annual gains of 7%, median year-over-year, since 2012. In total, 742 homes sold in 2017.
The hot spot in the Montrose market continues to reside under $300,000; 74% of sales occurred in this price range, keeping pace with 2016. Prices jumped 7.3% in sales under $300,000, while the number of homes sold was relatively flat in comparison to 2016. An interesting note to mention: paralleling 2016 to 2017, the $0-200,000 market saw a 22% drop in the number of homes sold, while the $200,000-300,000 felt a 14% increase in units sold.
The upper-end real estate market is still soft, but a few trends are worth mentioning. The $500,000-600,000 range had 45% more sales in 2017, while the $600,000 plus market saw a 29% decrease in homes sold. The $400,000-$500,000 market was quite soft this year due to a flood of inventory in this price range. Inventory levels/saturation rates were over a year in this range as well.
Moving Forward – 2018
The real estate market, continuing momentum from the busy fall, started strong going into the New Year. A spike in December activity (which is typically unheard of) is translating into a robust January. Lack of housing inventory is an obvious concern for the real estate market moving into 2018. The 3.4-month supply inventory of existing homes in November was a record low nationally.
Affordability is still a concern as prices are driven up by strong demand with wage growth lagging behind. Nationally, even as new-construction numbers are trending upward toward pre-recession levels, “demand is expected to continue to outpace supply until 2023, even after demand has reached its peak” (A Bullish Year For New Home Building).
Figures 5 and 6 illustrate building permits and building permit valuation in Montrose. Total building permits are up to 158 from 136 the previous year. Total building permit valuation has increased to $14,951,843 from $9,410,657. Single family home permits are up to 50 from 33, and single family home permit valuation has increased to $8,739,080 from $5,477,563.
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Copyright 2017 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, CMU Department of Business and Economics, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2017. All Rights Reserved.