Market trends for the Montrose Colorado region are beginning to normalize headed into the summer selling season. Now having experienced a traditional spring, housing activity is trending into what may be a new market environment. Homes priced over $700K are now technically in a strong-buyer’s market, with inventory in this range cresting 12-months of available inventory. Buyers have a lot to choose from in this range and therefore have an upper hand. On the flip side, the market under $700K is still a seller’s market with inventory levels in the 4-month range.
Spring unit sales in Montrose are similar to national trends, with the total number of home sales in Montrose down 20% from 12-months prior. Nationally, unit sales are down 23% according to NAR. As stated in previous reports, our local market seems to be stagnated while prices on average, are still holding value. The 3-month median of home prices is up 3.9% from a year earlier. All the while, relatively low inventory coupled with high new construction inputs is helping prop home prices.
Housing inventory in Montrose under $500K is still quite low, especially if square footage over 1,900 is desired. There is TBD new construction available between $400-500K but with a smaller footprint. There is ready built new home inventory over the $500K mark, though this product seems to be sitting on the market a lot longer than expected.
The Federal Reserve’s war on inflation and interest rates seem to be working, as the slowing real estate activity indicates. Currently, rates are hovering around 7% for a conventional 30-year fixed mortgage. Because of this, our market is experiencing a heightened percentage of contract cancellations as home buyers feel remorse after digesting monthly payments after an offer has been accepted.
Based on the numbers, home prices (Under $700K) should hold or even slightly increase through the rest of the year. Luxury home prices over $700K may start to retreat due to high inventory levels. Meanwhile, golden handcuffs deter new listings and may keep inventory low for the foreseeable future.
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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.