January Market Minute – Ouray & Montrose CO Real Estate Update
Montrose Colorado Real Estate Market
In the Montrose Colorado Real Estate Market, the median home sales price for November was $195,000 and $209,000 in December. This price point is a huge increase from last November and December when the median price was closer to $150,000. The reason for this large price increase is that there were many more distressed foreclosure sales in Nov and Dec of 2013 relative to 2014.
Though the median sale price increased in November and December (which typically reflects demand), there was a significant decrease in the number of sales. I believe this paradox can be attributed to the current lack of homes on the market for buyers to choose from. Many buyers have decided to wait for more homes to come onto the market before reconsidering a home purchase. Montrose County has a total of 408 residential homes for sale. Of those 408 homes, 56 of them are already under contract. Believe it or not, those 352 homes get picked over quickly and buyers usually opt to wait for more homes to come on the market.
Ouray Colorado Real Estate Market
In Ouray County, there are currently 209 residential properties listed for sale. Of those 209 homes, 22 of them are under contract. There were the same number of sales in the last quarter of 2013 as there were in the last quarter of 2014, but the median sales price actually dipped a bit in the last quarter of 2014 as compared to 2013.
National Real Estate Market
On a national level, home prices are up 5.5% from last year but down 0.4% from last month.
There continues to be a slowing down of prices and sales over the last few months. Some of the decline is due to the winter season and another reason is that there are fewer homes for buyers to choose from, and buyers are not seeing what they want. Many homebuyers are choosing to delay their home purchase until more houses come on the market. The average sales price is $208,300.
The interest rates on a 30-year mortgage dipped in December to approximately 3.8%. These low interest rates are still historically low and continue to entice buyers to purchase sooner than later. The share of first-time buyers climbed to 31%, the highest level since October 2012.
Because of the low interest rates, the easing of lending standards, and the still-lower home prices, many renters are entering the home market. In many situations, renters are finding it more affordable to purchase a home than to rent.
That’s all for now! I hope you have an excellent start to your 2015, and as always, I’m here if you have any real estate needs!
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 2014. All Rights Reserved.