Will Supply Continue to Affect Housing Prices? – November Real Estate Stats
As we come to the end of the year, it is unique to see a market still so hot during the holiday season. This may be because the beautiful Montrose sun is keeping buyers out and about in mid-December, or the fact that inventory is still low. Either way, the market is not showing signs of slowing down. Over the past few months we have seen a drastic increase in sales prices compared to the same time frame last year with an increase of 12.47% to a staggering $285,450. This is 6.1% higher than the national median sale price. Our supply is continuing to dwindle which begs the questions, are the home prices going to continue to follow the trend that is supported by supply and demand? Based off what we have seen so far, the answer is yes. Although prices have been climbing, we have seen a slight decrease in the ratio of sales price to list price. This has decreased 0.73% over the last year putting us right above 99% listing price compared to sale price, which is still very strong!
Months of Available Inventory
$100-200k Price Range: 1.71 Months
$200-300k Price Range: 1.98 Months
$300-400k Price Range: 3.35 Months
$400-500k Price Range: 3.91 Months
$500-600k Price Range: 8.20 Months
According to the National Association of Realtors, a healthy market (an equal number of buyers and sellers) is considered 6-months supply.
It’s no surprise that we continue to see home prices increase as inventory drops. Compared to this time last year, the median sales price has increased 6.2% to $270,900. The housing inventory has also dropped from 4.3 months to 3.9 months. Although sellers usually sit tight this time of year waiting for spring, buyers are still eager to get their family into a home. Because of this, 46% of homes that were sold in October sold in less than a month with 31% of sales coming from first time home buyers. Interest rates are shockingly low right around 3.7%, which is down from 4.54% in October of last year. As a seller or as a buyer, you have leverage in the market you are in (Existing Home Sales Climb 1.9% in October).
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Statistics gathered from CREN MLS, criteria are all residential not including mobile or manufactured housing in Montrose. Copyright 2019 Keller Williams Colorado West Realty, LLC. 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, and the Mortgage Brokers Association. This data is considered accurate, but is not guaranteed. Copyright Atha Team LLC 2019. All Rights Reserved.