The Montrose Real Estate market is finding a new trajectory this spring as the upper and lower price ranges continue to diverge. Essentially, the housing market over $500K is now becoming balanced, with an equal number of buyers and sellers. Meanwhile, there are still very few homes for sale under $500K. Consumers in the lower price ranges are finding themselves once again in a strong sellers’ market, with buyers competing against other buyers in multiple offer scenarios.
The obvious explanation of the strong seller’s market in lower ranges, is linked to mortgage rates, home prices, and building costs. Mortgage rates are still double what they were 12-months ago, while prices remain quite sticky. On average, sellers in our valley are coming down 3% off their list price. Further, the median purchase price has leveled, and is now headed back up again as of March. The median sale price in March was at $407,500 and 5% higher than 3-months prior.
Building costs remain high, even with lumber prices normalizing. Consumers get excited about lumber prices returning back to earth. But one has to remember that lumber is only a percentage of the entire commodity input into the final product. Many of the inputs remain high compared to just a few years ago, including labor. Montrose is competing with mountain towns for labor and talent, which keeps our construction labor prices high. This sustained elevation of construction costs removes the natural price cap that would normally occur in existing home prices. Hence, home prices are projected to remain stable.
Minus a few all cash investors, many real estate investors seem to be on pause as mortgage rate hikes have all but driven them out of the arena. Prices and or rates will need to drop, or rents increase, for the typical long-term rental investor to begin purchasing again.
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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.