The Western Slope real estate market is hitting headwinds, moving into its typical prime summer selling season. Reflecting a third year of poor demand due to high mortgage rates, many buyers now have equity trapped in homes that are not selling, leading to a slower market in the Ouray and Montrose County markets. Contingent offers have now become very common. Unfortunately, many of these contingent offers are attached to homes sitting idle on the market in Denver.
The Denver market has 42% more home sellers than buyers. Pandemic escape metros, such as Denver, Austin, San Antonio, and Boise are experiencing a serious lack of buyer momentum, with housing inventory growing steadily. Hence, many sellers in the Uncompahgre Valley are receiving offers contingent on homes selling (or not selling) in Denver. Therefore, the semi-frozen real estate market is not just local but regional.
The Montrose real estate market has seen a leveling of prices with the median sale price sitting at $468K. More than half of the home sales in June were under the $500K mark. Buyer demand is a very fluid concept currently. Some properties in downtown Montrose or properties with a detached shop for example, are seeing multiple offers. A renovated downtown property recently received 8-offers over the 4th of July weekend.
It’s challenging to see a light at the end of the tunnel as the Federal Reserve continues to hold its federal funds rate. The implementation of new U.S. tariffs, first announced in April, is largely anticipated for many countries on August 1st. This will hopefully give the Fed the guidance it needs to then begin to lower interest rates. If rates do not come down, expect the rest of the year to display similar levels of tepid housing demand. The Fed has stated that it indeed is waiting to reduce interest rates until the effects of the April tariffs are better understood.
Click Here to View Residential Sold – June
