Serious Market Decline
Montrose Real Estate Market activity has been in steady decline since July. The average home listed for sale is only getting around two showings per month. Home sales are down 31% in September, and 33% in October, year-over-year. Further evidence of this decline in activity is pending sales, which declined 41% in September and 32% in October year-over-year. The pending sales trajectory points to even further declines this winter.
Why are Prices Still Up?
The majority of home sales are taking place in the price ranges above $500K. Only 32% of home sales occurred in the more-affordable range below $500K. With that said, the average months of inventory in the entire market is close to 7-months, highlighting the fact that the Uncompahgre Valley is truly evolving into a buyers market, with a much larger selection of homes.
Buyers Finally Get a Break
This is obviously good for buyers as many sellers are now willing to reduce price and provide financial concessions. This is causing real-time prices to come down, though the headline average sales price is still up. But again, that’s because the few homes that are selling are transacting in the upper price ranges, skewing prices upward.
Buyers, who want value, must filter out the “want-to-sell” sellers from the “need-to-sell” sellers. Inventory is up and there are plenty of homes to choose from. Arguably, this is an exceptional time for buyers, if they can make the numbers work with their long-term financial and homeownership goals.
Home Sellers
Sellers are beginning to get realistic about the market. Of the active properties for sale, a staggering 43% of home sellers have implemented at least one price correction while listed for sale. The sooner sellers are willing to face the truth about the market, the quicker they can get to their next chapter in life. We are now entering a new market environment where buyers are now calling the shots.
Echo of 2008?
Nationally, the number of homes selling is the lowest since 2008! Now before you panic and ask for a foreclosure list, or think prices are going to tank, realize that this market – stunted by high interest rates and affordability constraints, is much different than the sub-prime, big-bank casino environment of 2008. Mortgage rates + elevated prices + sour consumer sentiment + doom scrolling = equal a very slow market. And remember, many homeowners still have a ton of equity in their properties, translating to very few distressed sales, or forced sales, or any sales! – this is 2006.
Click Here to View Residential Sold – October
