Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

June 2018 – Montrose Colorado Real Estate Market Update

Montrose Colorado

Montrose Real Estate Market Housing Prices Continue to Climb as Lower End Houses are Harder to FindAs home prices continue to trend upward, the number of properties selling remained relatively flat in June. In relation to June of last year, the Montrose real estate market experienced a 15% gain in sale prices. Absorption/saturation rates have increased in the $400-500K price range as more properties have entered the market for prime selling season. Inventory levels still remain quite low under $400,000; a healthy market (an equal number of buyers and sellers) is considered 6 months of housing inventory. A positive note to mention is the number of sales in the middle price ranges comparative to years past.

Over the last 6 months:

  • 157 homes sold in the $200-300K range
  • 61 sold within the $300-400K range
  • 42 sales between $400-500K

Inventory Levels (Absorption/saturation)

  • 3.5 months supply of inventory in the $200-300K range
  • 3.6 months supply of inventory in the $300-400K range
  • 14.4 months supply of inventory in the $400-500K range
National Market

Seattle Skyline National Market Update - Credit Flickr.com SeryaniThe National real estate market has tapered in the number of sales over the first half of the year. New construction was a bright spot in the overall economy in May with new housing starts increasing 6.7% from the previous month (New Home Sales Surge on Rising Purchases in the South). Housing shortages and increasing interest rates are causing many prospective homebuyers to adjust their price ranges in what they can afford monthly. Mortgage rates are still historically low in comparison to the National average. Current rates on a 30-year fixed mortgage at 4.6%.

National home prices experienced an 8.7% gain over 12 months from April of 2017. San Jose (Silicon Valley), Las Vegas, and Seattle were the top three contenders for the most dramatic housing increases in the US. San Jose came in at a whopping 26%, Las Vegas 16.5%, and Seattle at 13.6%. San Jose is still the hottest job market in the US according to CNBC, which explains in part, the rapid demand and price increase for housing in that area (Home values are skyrocketing at the fastest pace since 2006).

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June Residential Housing Statistics in Montrose Colorado - Presented by the Atha Team

 See other housing market stats posts by the Atha Team HERE.

 

Thinking about Buying or Selling? Call or Text: 970-417-9375

Atha Team Montrose CO Keller Williams Real Estate AgentsCopyright 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.

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

May 2018 – Montrose Colorado Real Estate Market Update

What’s the New Housing Inventory Outlook?

New-Construction-Real-Estate-Building-in-Montrose-ColoradoNew 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.

National Market

National Real Estate Market Housing Inventory InflationAt 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).

 

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Montrose Colorado April Real Estate Marketing Statistics - Atha Team

 See other housing market stats posts by the Atha Team HERE.

 

Thinking about Buying or Selling? Call or Text: 970-417-9375

Atha Team Montrose CO Keller Williams Real Estate AgentsCopyright 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.

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

1st Quarter Sales Trends

Local

1st Quarter Sales Trends Montrose Colorado Atha TeamAs we come into the Second quarter of 2018 it’s clear that the trend of decreasing inventory and increasing home prices continue. The average number of homes active on the market below $300,000 has decreased by 18% from 95 to 78 from the first quarter of 2017 to the first quarter 2018. There has also been an increase in the median home price by about 20% from $194,437 to $234,800 since the first quarter of 2017. Along with the increase in the median price, there has also been an increase on mortgage interest rates. We don’t expect those rates to be coming down anytime soon. With all this being said, now is the optimal time to buy, as it may be years before we see a significant decrease in home prices.

Real Estate Statistics Montrose County and Atha Team Prices and Days on Market

National

On a National level, similar to the local market, residential home inventory across the board is at a record low. What is causing the shortage of homes? Industry experts say the building crisis is a result of a combination of tightening housing regulations, a lack of construction labor and a land shortage in highly prized areas. Building used to be a viable option for low to mid-range buyers looking for a new home. Unfortunately the price of land and construction has roughly doubled since the end of the last boom a decade ago (The Next Housing Crisis: A Historic Shortage of New Homes). This has left builders dealing mostly with high-end custom homes so they can actually make their money’s worth. This leaves many buyers in a difficult situation as they are left competing with a handful of other buyers on any home that is worth purchasing. As we see our economy booming with an increase in jobs and median family income, it’s frightening to know that new housing construction is down a shocking 22% below the historical average. With that said, it is hopeful to see new construction under $300,000 in Waterfall Canyon and Star Ridge, as well as a few other subdivisions in Montrose.

 See other housing market stats posts by the Atha Team HERE.

 

Thinking about Buying or Selling? Call or Text: 970-417-9375

Atha Team Montrose CO Keller Williams Real Estate AgentsCopyright 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.

Montrose Co Real Estate
Real Estate Statistics - Montrose Colorado MLS

Will Local Real Estate Rise or Fall?

Local Market

First time home buyer in Montrose Colorado Sold by the Atha TeamMontrose Colorado’s residential housing market experienced relatively high numbers for January sales.  Homes sold for almost 29% more in January 2018 than in January 2017 and we saw 13% more sales last month than a year ago.  Are these numbers ramping up due to the unseasonably high temperatures or is it a result of a steady rising economy and growing consumer confidence?  There are still many first-time home buyers entering the Montrose market as well as buyers relocating due to work, retirement or simply being drawn to our beautiful area.  The question is: Will the market continue to rise or will it start to flatten out?

National Market

Many hot markets around the country are still having multiple offers and sales over asking price due to the low inventory and huge demand. “Home prices continue to rise three times faster than the rate of inflation” [David M. Blitzer, Managing Director at S&P Dow Jones].  While all this seems encouraging to potential sellers, according to USA Today, the rising costs and tax-law changes may alter the momentum from 2017.  We could see a downturn in the national market due to potentially increasing 30-year mortgage rates, investors that have been flipping houses for profit being more cautious and Baby Real Estate homes under construction in Montrose ColoradoBoomers desiring to remain in their current homes.  Higher priced home sales may be hit the hardest according to the Washington Post, but first-time home buyers won’t be deterred from seeking homes with less square footage.

The good news? The Western Slope is usually 1-2 years behind the national market, so we expect the real estate boom to continue. With the new tax changes benefiting builders and first-time home buyers, new construction is gaining momentum.   In conclusion, the national market may be getting ready to peak and cool down, however western Colorado hasn’t seen the end of multiple offer transactions from eager buyers and the sustained pent-up demand.

February 2018 local and national market stats update - Atha Team

 

Copyright 2017 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 2017. All Rights Reserved.