What is causing the Jump in the High End Market? – July Real Estate Stats
The Montrose Colorado real estate market, along with the summer weather, has been unpredictably hot. The market under $300K has experienced an averaged 41% decline in available inventory over the previous 5.75 months of 2018, compared with the same period last year. Interestingly enough, total sales volume in Montrose Colorado is up 5.9% over the first 6 months of the year.
Housing inventory is down, yet total sales are up approximately 6% due to a shift in the mid and upper-end housing markets. This increase in activity in the $300-500K range is making up for tapering activity in the lower price ranges. Signs of overheating are beginning to emerge in the under $300K range, reflected in the 6.5% drop in homes sales under $300K from January through June. During the first two quarters of 2018, there has been a 30% upsurge in the $300-500K range. Explanation: The Boomers are coming.
Nationally, the real estate market as a whole is flattening, evidenced by the decrease in units sold since the beginning of this year. June sales were down 0.6% from May of this year while existing home sales declined on an annual basis 5 out of the first 6 months of 2018. The primary explanation is not due to poor performance of the general economy but rather housing inventory depletion and steep price gains. Rising interest rates, though historically low, will most likely contribute to this leveling of sales activity as well. Declines were mostly felt in the South and West while upticks were experienced in the Mid West and North East regions of the country. A 30-year fixed rate mortgage is currently at 4.6% (Home Sales Extend Slump Despite Economic Strength) (Pricey Housing Markets in West Are Cooling Off Most Quickly).
See other housing market stats posts by the Atha Team HERE.
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Copyright 2018 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 2018. All Rights Reserved.