Single Family Home Building Permit Trends
In Montrose Colorado, a slow uptick trend can be observed over the last two years as builder confidence rises and home inventory levels continue to disappoint consumers, driving demand for new home construction. There has been roughly a 30% increase in building permits issued in Montrose county over the last 20 months; this increase is still quite low in relation to pre-recession levels. The majority of new single family building permits are being issued for custom home-builds. Larger corporate builders such as GJ Gardner are just starting to re-enter our local real estate market; GJ Gardner is quite active in Water Fall Canyon at the moment with several new housing starts.
Nationally, single-family building permits were up 3.7% in August while there was a decrease in total housing starts due to disruptive weather in the South (U.S. housing starts tumble, flooding in the South blamed).
Permit Trends in Montrose County
Homes Sales Slowing Nationally – Consumer Demand Still High
In the National real estate market, values are still rising while hot job market metros are lagging. Metros such as San Francisco and Denver have both experienced a decrease in home equity as consumers balk at the rapid price increases. Single family home and condo sales in California were down 13%, year-over-year from July, and 18% in Denver year-over-year from July according to the Denver Metro Association of Realtors and Property Radar. Starting from January of 2016, the Denver market has dropped 4%.
Keeping in the mind the bigger picture, National slowing of the housing market is being blamed on, once again, the lack on home inventory rather than on consumer price shock as seen in the metro areas.
Montrose Colorado’s inventory is still quite low with only 141 homes for sale between $150,000 and $400,000.
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Copyright 2016 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, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2016. All Rights Reserved.