As 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.
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.
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Copyright 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.