What is Making Buyers Pause? – October Real Estate Stats
Montrose Colorado Market
The Montrose housing market has been on a steady leveling trend over the last month. Homes that would have been under contract within several days after going live on the market, are now taking several weeks. The overall subjective feel for the market, local agents are reporting, is that buyers are purely catching their breath. Local Buyers have also been re-adjusting their home purchase budgets and monthly payment thresholds given the recent rise in mortgage rates. Buyers who were already at the top of their housing budgets are now lowering their overall purchase price to make up for the increase in mortgage rates. An increase of 1% in rates roughly equals a $150 jump in monthly payments on a home mortgage of $250,000.
With the increase of days on market, buyers now have better chances getting into homes they desire, rather than facing heavy competition that was seen over the last 12 months. The market is still experiencing civilized competition and multiple offer situations, albeit less of them over the last month.
The national market is also experiencing a trend of flattening price gains, hovering at around 6%; July was the fourth consecutive month of tapering equity. According to the most recent NAR data, the National median sale price was $267,300 in August while inventory levels remained uniform. Mortgage rates are now sitting at a 7-year high of 5%. Although this is still a historically low rate, buyers are re-calibrating based on the new rates when lock-in periods expire.
Next Buyers Market?
Boomers, being a massive population segment in the US, have been the movers and shakers of change. Recent data suggests that 2026 may be the year for the next shift from a Seller’s market to a Buyer’s market. Given 20% of all homeowners in the US are boomers; they are indeed the lion’s shares of homeowners. A 2018 Fannie May report is predicting this generation’s exit from the single family housing market into assisted living retirement homes and rentals. This massive shift may cause a wave of inventory to penetrate the housing market around 2026 (U.S. Home-Price Gains Decelerated in July), (The Boomer Bust).
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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.