What’s the New Housing Inventory Outlook?
New construction is the new inventory as residential housing prices jump at a neck-breaking pace and inventory levels deplete. Developers are finishing-out once stunted subdivisions of the last real estate boom off West Main and North of Montrose, adding new and upcoming lot inventory for builders. Total inventory of residential homes, in all price ranges for Montrose is down 12.9%, while the existing inventory of homes under $300,000 is down 19.1%. These numbers reflect a 4-week snap shot of a year-over-year trend and tend to be a less accurate reflection of the market compared to calendar year comparisons. With that said, some clarity is indeed provided into local market conditions and to what the summer may unveil moving forward for buyers, builders and sellers.
At the national level, new home construction remains near its lowest level in 60 years, while national home prices continue to gain at approximately 6% per year. The price gains in housing are approximately three-times the rate of incomes and two-times the rate of inflation, presenting a sobering view of the situation many Americans face. Real estate ownership is one of the primary ways that Americans create wealth and many are being left in the dust as affordability wanes. On the flip side, the unemployment rate is at one of its lowest levels in nearly a century and economists anticipate that wages will eventually increase, adding buying power to consumers in competitive housing markets (Homebuilding Isn’t Keeping Up With Growth, Development Group Says).
Baby Boomer Boom in Montrose
A recent US Census Bureau report provided a map of 442 counties in the Nation as labeled, “retiree destination counties”. In Colorado, 10 out of the 64 counties were on that list and Montrose County was included. Population growth in those counties grew by 2% on average in 2017, three-times the rate of National population growth. What does that mean for the local housing market? More competition for locals and also the cash to fuel construction for much needed inventory (Retirees Reshape Where Americans Live).
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.