Where is 2024 Housing Headed?

The Montrose real estate market has essentially stabilized over the last 12-months. Home prices and sales this spring are mirroring market activity very similar to the spring of 2023. Prices increased 1.3% over the last year to a median sale price of $461,750. Unit sales of homes are also similarly flat.

Mortgage rates are approximately 70 BPS (.70%) higher than May of 2023. With that increase aside, the housing market projections for the rest of 2024 seem to be on a similar trajectory as last year. Obviously, mortgage rates have a direct effect on how this year will progress.

Housing and pricing in our valley are still diverged into two separate markets. Home sellers above the $700K price range are experiencing a saturation of inventory and competition. Therefore, the saturation in the upper-tier is helping to create a buyer’s market as there is close to 9-months of housing inventory in this range. Market equilibrium, with an equal number of buyers and sellers, is considered 6-months. With this in mind, homes in this upper-range must be positioned strategically and appropriately in order to procure a buyer and following sale.  

Excluding new construction, the current inventory in the rest of the Montrose market is sparse. This spring has been challenging for home buyers shopping in the sub $700K price range due to low-inventory. Meanwhile, the opportunity to purchase a home with an option for privacy and a few acres is narrow.

Albeit slowly, new listings are coming to market as the traditional spring listing season firms up. There are plentiful location options for buyers willing to consider new construction. Although, these options typically bode smaller footprints, lot size, and still require landscaping and fencing which can easily add up to an extra $50K to the overall purchase consideration. The new construction tradeoff is moving into a home with few to no maintenance issues for the foreseeable future along with some customizable options.

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