The Montrose real estate market is slowing as the current effects surrounding the COVID19 epidemic impact our local community. Although the real estate industry is considered a critical business by the State of Colorado, the shelter-in-place mandate is being taken seriously by agents, home buyers, and home sellers. This has led to the obvious impact of a slow-down in buyers physically touring homes, which in-turn effects the number of homes going under contract. Showings are down about 23%, while homes recently placed under contract are down approximately 25% from the same period last year.
On the brighter side, new homes listed on the market are at near parity from last year, evidenced in a 3% increase. It’s too soon to observe the impact on home prices, but if the shelter-in-place continues, the local and National real estate markets could experience a swing back to an equilibrium (equal number of buyers and sellers) market due to buyers pulling back from economic stresses and shelter-in-place mandates.
On a different note, our real estate team has experienced an approximate increase of 300% in online traffic to our client’s real estate listings. Buyers who are “still in the market”, are now shopping for homes primarily online and though our video tours. Time will tell if this massive increase in online traffic translates into sight-unseen offers on client properties.
The National real estate market is congruent with what’s effecting Montrose on a local level. Most often, Montrose has lagged behind economic trends, as previously observed in the delayed local impact from the 2008 Financial Crisis; our housing market bottom was seen in 2010. The difference between the last recession and the current situation is that the present crisis looks much more like a natural disaster, with instantaneous impacts rather than a cyclical economic recession, which takes more time to unfold.
Mortgage application rates, a bellwether for future market performance, displayed massive volatility in new mortgage applications. Applications were down 29% only two weeks ago, but are now up 15% from last week. Major metros, such as Denver and Los Angeles, are also experiencing similar trends to Montrose, with noticeable decreases in buyer activity and new pending contracts.
Interest rates are literally at historic lows with a 30-year fixed rate mortgage hovering at 3.5%, down 15 basis points from the previous week. Although tempting, one cannot predict if these low rates are enough to pull buyers back into the ring for the short-term.
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. Copyright 2021 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 Realtors, CoreLogic data analysis firm, Montrose Association of Realtors, CMU Department of Business and Economics, InfoSparks, YCharts, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2021. All Rights Reserved.