For the 2nd month in a row, unit sales in Montrose are down in the neighborhood of 40%. We are beginning to see some interesting deviations happening in specific price ranges in Montrose as well, which resemble pre-pandemic levels. Price ranges between $600k and $800k are increasing in supply rapidly, up to what is now over 10 months of available inventory. While many higher-end homes in Montrose that are in good condition and priced well are still selling relatively quickly, this number represents a significant aberration from the last 2+ years.
A little Montrose real estate history is important to include for context though. 2+ years ago, the ‘luxury’ market in Montrose (as defined by that price range of above $600k) essentially didn’t even exist, with only 60 homes selling in that range in 2017, 2018, and 2019 combined. Clearly, prices soared in 2020 and afterward. Why the slowdown in the $600k and above range?
Certainly, one factor has to be interest rates. While conforming loan limits have risen significantly
in the last year, that still doesn’t change the fact that payments have skyrocketed, especially in the higher price ranges. Many buyers are able to find creative ways to still qualify for a $400k home, where an average payment is around $2,000 a month (assuming 20% is put down). Homes in these price ranges are still moving very quickly in Montrose. Full circle, it is a much different story when you’re talking about purchasing a $700k home with a payment in the neighborhood of $4,000 a month.
With all of that said, we have yet to see all of this slowing in unit sales to have a significant impact on prices, which are still over a 98% sales-to-list average. As we’ve said before, the crystal ball is broken at the moment with a vast array of economic forecast perspectives
, many of which seem to be varying even week to week!
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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 2023. All Rights Reserved.