Will the Trend Continue? – November Real Estate Stats
Everyone is asking the same question, how much longer will we continue to see an increase of median sales prices in Montrose? The market is up an approximate 11.4% since this time last year. Many people say there has been a shortage of inventory but we have actually seen an increase of about 2% from this time last year. So rather than an a change in available homes, it’s more realistically been an influx of buyers to the market. We have certainly seen a slowdown coming into the fourth quarter with an average of 41 homes going under contract this quarter compared to the busy second quarter with 242 homes going under contract. The question remains. Will it continue? We are seeing that it is softening but not melting down, but based off of previous trends, we may be heading back up before we know it.
Home building saw a steep decline this November due to the heightened affordability concerns in the housing market. The recent eight point drop on the housing-market index dropped to the lowest level we have seen in over two years. National Association of Home Builders chief economist Mr. Dietz says that “While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall”. As mortgage rates approach 5% it is getting even more challenging for first time home buyers, especially with the home price growth continuing to outpace the wage growth (U.S Home-Builder Sentiment Posted Steep Decline in November).
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Copyright 2018-2021 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 Realtor, 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 2018-2021. All Rights Reserved.