A hot 2022 real estate market has cooled down in 2023, according to market trends. Home prices and new listings are still high but are lower than last year’s numbers, according to the latest market update from the Colorado Association of Realtors.
Only 3,595 listings had been sold in Colorado’s Third Congressional District through May 2023, a 29% decrease from the 5,060 sold over the same time period in 2022.
New listings on homes were down 21.9% statewide year-to-date, and sold listings were down 23.2%.
Montrose County follows the statewide trends, with new listings down 8.6 percent year-to-date and sold listings down 31.6% year over year.
Sale prices are down statewide but are up in the Third Congressional District. The average sales price has dipped from $717,151 to $695,497 statewide. Home prices are up on average from $675,169 to $686,442 in the Third Congressional District; and they’re up by 3.3%, from $410,000 on average to $423,500 in Montrose County.
The average sales price of townhouses and condos is also up.
Single family homes in Montrose County are staying on the market about 17% longer, but townhouses and condos are staying on the market 85 days on average, compared to 91 days in 2022.
The main culprit for the residential real estate slow down is interest rates. They are up 1 to 2 points from where they were last year, on average.
“It’s been an overexuberance in the market, so it’s a pause,” said local realtor John Renfrow.
He said people are trying to flock to Colorado, which has a higher minimum wage than most states and is a favorable location for retirees.
Down the valley
Many people who work in Telluride and other mountain towns live in Montrose.
Renfrow said as people move into Montrose, and the home prices in Montrose continue to rise, people are moving “down the valley.”
“They are moving to Olathe, or to Delta,” he said.
Shawn Carroll, a broker with NextHome Virtual, said people have been flocking to rural areas like Montrose. But that momentum is slowing. Still, that means home prices aren’t dropping, and Renfrow said homes priced under $400,000 are still moving just as quickly as they were before this 2023 slowdown.
Nationwide, inventory is increasing as builders and developers gamble on pent-up demand, Carroll said. He sees that trend locally, as well.
Justin Tubbs is the Montrose Business Times editor. He can be reached by email at firstname.lastname@example.org or by phone at 970-765-0915 or mobile at 254-246-2260.