Housing prices in the Montrose market are leveling off relative to the stratosphere gains seen through the summer. Prices increased a hearty 15.32% relative to the same 3-month time period last year. Keep in mind that this is a huge increase relative to the historic real estate equity gains of low single-digit percentages. The fall season does normally experience a downward trend in home sales and prices; therefore, the market is not slowing per se, but experiencing normal seasonality. Overpriced homes listed in the spring and summer tend to sell for what they are actually worth in the fall. Inventory is down 30% from a year ago, with demand still driving price increases. The current inventory depletion can be attributed to Sellers taking a break for the holiday season and the fact that we are now finishing up the traditional “selling” season.
The median home price increased 13.3% to $352,800 with home sales rising 7% from the same period last year. These numbers show that buyers are still on the hunt for homes. Evidence of mortgage rate increases is now a reality that may be here to stay. Many buyers can see the clouds forming and are deciding to buy now rather than waiting until next year; mortgage rates are expected to breach the 4% mark by year’s end. Inflation expectations and the projected increase in US Treasury bond supply are all contributing to the rise in mortgage rates. Market projections, if rates remain upward, point to flattening housing prices and demand as consumers can afford “less house” when monthly payments and rates increase.
Back to fundamentals, supply and demand are still driving the market. New construction is having quite a challenge producing new homes as construction worker labor shortages and supply bottlenecks lengthen the construction processes and drive prices higher.
Thinking about Buying or Selling? Call or Text: 970-417-9375
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 2021. All Rights Reserved.