There is a lot about living in Montrose that is unique, compared to most of the rest of the state and country. The housing market is no exception. If we simply take a look at three simple barometers of the local real estate market below, Montrose is still in a seller’s market. Averaging it out, homes in October sold for 100% of the asking price. We still have 3 months or less of inventory across all price ranges, and more home sales occurred in October in Montrose than in September. Even with yet another rate-hike announced by the Fed on November 3rd, homes are still going under contract and selling at a similar pace to 2019.
Another unique characteristic of the market in Montrose is that the median price of a home is $394K. It’s been hovering around the high 300’s and low 400’s for the last 6+ months. This is still extremely competitive compared to many markets throughout Colorado and beyond, considering the quality of life and relative ‘easy living’ we appreciate so much about being on the Western Slope. Granted, when you pair that $394K purchase price with a 7% interest rate, you’re looking at a monthly payment of approximately $2,300. And that’s assuming decent credit and putting 20% down. $2,300 is still a lot for the average household income in Montrose, so lenders are getting creative with adjustable-rate mortgages and programs to help take the edge off those higher payments.
Looking at the national market, we are seeing more examples of slowing sales, price reductions, and increasing inventory. Many markets out west experienced massive price jumps during 2020 until about the last 6 months. Luxury home sales in Austin for example, were down about 37% this past summer compared to last.
There are also some very interesting developments happening within the mortgage market itself. As we mentioned, while many markets are experiencing a slowdown in sales, prices are still staying relatively high in many markets. To keep up with that, government-controlled agencies like Fannie May and Freddie Mac are looking at raising conforming loan limits yet again.
Right or wrong, we certainly are living in interesting times with the Fed continuing to raise rates time and time again in attempts to slow inflation, and government-controlled agencies raising loan limits to accommodate the extremely high payments many buyers are experiencing.
Thinking about Buying or Selling? Call or Text: 970-417-9375
Statistics gathered from CREN MLS, criteria are all residential not including mobile or manufactured housing in Montrose. 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 Realtors, CoreLogic data analysis firm, Montrose Association of Realtors, CMU Department of Business and Economics, InfoSparks, YCharts, National Association of Realtors, Cornerstone Home Lending, and the Mortgage Brokers Association. This data is considered accurate but is not guaranteed. Copyright Atha Team LLC 2022. All Rights Reserved.