Steady and strong demand for Montrose housing is setting the precedence for another strong year ahead. Residential home sales are up 17% over the last 3 months, while price gains are still up a whopping 20% compared to the same time last year. Building permits in the City of Montrose are up 44% for the first two months of the year. Single family residence permits for the County of Montrose are up 81% year-to-date. Local builders are tapping into the strong housing demand and filling the gap in the anemic housing inventory levels; the month of February ended with 81 total active homes for sale, down 53% from the previous year.
What’s happening? The strong urban exodus to rural areas is still real, while record low interest rates are powering consumers to afford lower monthly payments, in turn purchasing higher sticker price homes.
Firm buyer demand is still driving the growth in sales and home prices across the country. Housing inventory nationally, is down 25.7% as buyers jump at new products hitting the market. Total sales of existing homes climbed 23.7% and home prices gained 14.1% from a year ago.
Mortgage Rates and 10-Year Treasury Bonds
The week ending in March 5th experienced the highest mortgage rate levels (3.26%) in almost a year. Though we are still at historically low rates, the increase has sparked reluctance in some consumers with plans to purchase or refinance in the coming months. Many in the housing industry hope that things don’t get too heated as increasing rates could slow buyer demand. On the flip-side, decreased housing demand due to higher mortgage rates, could give home builders time to catch up and bring temperance to a heated and sometimes frustrating market for buyers.
The mortgage rate increase is directly correlated to the increase in the 10-year US treasury bond yields. As consumers and investors become more optimistic about the US economy, they begin to dump safe-haven assets like US treasury bonds and place their bets on more sanguine and higher returning investments.
“At the most basic level, as COVID recedes, the economy improves and a strong economy is the quintessential inspiration for rising rates.”
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, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2021. All Rights Reserved.