If you follow our monthly real estate market reports for Montrose, you’ll recall that July experienced a drastic reduction in unit sales in Montrose. Isolating numbers without proper context can yield to some shaky assumptions, and any thought that Montrose real estate was ‘crashing’ is answered emphatically by the month of August. You’ll see that unit sales actually increased in August versus the previous year.
A couple of things to think about – appreciation and home prices. The Montrose homeowner has gotten used to seeing equity gains of approximately 20-30% per year over the last 2 years. The trailing 3-month median sale price gain of 6.8% for August doesn’t sound flashy. But that percentage of growth is actually MUCH healthier and more sustainable and suggests that we are continuing to move into a more balanced real estate market.
If you look around at home prices, you will see price reductions occurring much more frequently than any other time in the last 2 years. Based on the numbers, price reductions are not a sign that the market is crashing. Rather, homeowners and agents listing and selling properties significantly over market value is no longer a viable strategy.
Observing mortgage applications as a lead indicator for the real estate market, a noticeable shift in mortgage applications is occurring. Mortgage refinances are down a whopping 83% from this time last year, loan applications for purchase are down 18%. You’ll recall this time last year mortgage rates were hovering around 3%. Right now, they are hovering around 6%. While demand for loan purchase applications has slowed down nationally, we are still seeing healthy and consistent pending sales and sold units in Montrose. A reason for this could be that we still have a strong number of buyers paying cash for homes as opposed to other markets.
The days of 3% mortgage rates are getting smaller and smaller in the rear-view mirror and buyers are adjusting expectations in order to purchase a home. The good news is that it’s taking buyers significantly less time to identify and secure a property for purchase as housing inventories increase.
Click Here to View Residential Sold – August
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Statistics gathered from CREN MLS, criteria are all residential not including mobile or manufactured housing in Montrose. 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, National Association of Realtors, Cornerstone Home Lending, and the Mortgage Brokers Association. This data is considered accurate but is not guaranteed. Copyright Atha Team LLC 2022. All Rights Reserved.