Montrose Market
Buyers in the Montrose market continue to snatch up new homes at a rapid pace despite record low inventories and record-high prices. Supply and demand are still the fundamentals at play in this historically unprecedented housing market. Several factors are motivating buyers to buy now rather than wait. One: buyers are realizing that mortgage rates are increasing and intend to lock rates now on a purchase rather than later. Two: Buyers are fearful of a further increase in home prices and therefore rather not wait. Three: Some consumers are flush with cash due to stock market holdings or savings from the pandemic and see a real estate purchase as a hedge against future inflation.
What’s telling of the feverish activity are the housing market numbers from February. The number of homes sold is up 18% from the previous year, while new listings are down 17%. If you’re a buyer shopping for a home in Montrose, you currently have about 60 homes to choose from. Back to supply and demand, this shortage is what’s driving up prices, plain and simple.
The good news is that building permits for February are up 25% in the city of Montrose, despite construction labor and supply headwinds.
National Market
The national market is shifting toward a higher price range as housing inventory under the $500K mark disappears. Even with the staggering price appreciation, home sales are still up 6.7% from a year earlier. Not surprisingly, prices are also up 15.4% with the median sale price at approximately $350,000. A glimpse of hope can be seen in the building permit numbers heading into 2022. Building permits are the highest they’ve been since May of 2006! Added inventory in the form of new construction may bring some much-needed relief to the market in the coming year.
The one headwind that could put a lid on the current housing market is an increase in mortgage rates. Current rates are now past the 4% mark with projections toward 5% near year-end.
Click Here to View Residential Sold – February
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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 2022. All Rights Reserved.