While the Montrose area real estate market continued to present its challenges in 2009, in my office, we saw a slight improvement over 2008, enjoying even greater activity the last half of the year. In November, while nationwide home sales were up 7.4%, in Montrose, per the MLS, they were up 53%!
So, as of January 1, 2010, here are the MLS stats for home sales in 2009 and the current market of active home listings in Montrose:
2009 Statistics--Homes Sold
Num Sold Num Listed Avg List Price Avg Sale Price % Sold
412 1,097 $219,632 $208,395 37.56
Sale Price/Listing Avg Days on Avg List Price % Expired
Price Ratio Market Unsold
94.88% 166 $352,434 45.85
Current Market--Homes for Sale
Total Active Listings Avg List Price Avg Days on Mkt
644 $335,574 239
What can you glean from this for the Montrose, CO market?
- In 2009, you had about a 38% chance of selling your home, and that will probably remain the same in 2010.
- In 2009, nearly 46% of the home listings were market rejected (i.e., expired), with an average unsold price of about $350,000.
- Homes that sold and will probably continue to sell into 2010 are those with a price point in the low $200,000’s.
- If you price your home competitively to sell, it should sell within 4 months, unless you are in the higher price points, and if you’re closer to the average current list price or unsold list price in 2009, it may take you over 6 months or longer to sell, if you sell at all.
If you are a seller, it is absolutely imperative you price your home competitively. This is no time to “test the market.” It’s been tested, and those that don’t price to sell, lose (i.e., don’t sell). I’m also telling my prospective sellers, if they don’t have to sell, don’t, but be prepared to wait at least 2-3 years, or more, before seeing the market improve enough to get what they need or want out of their homes.
If you have to sell, or want to because you want to buy something else, then I’m advising you list it for sale now and price it competitively. If you wait till spring or summer, then you will lose out on the homebuyer tax credits and the interest rates that are predicted to remain low while the tax credit remains in effect, but will increase after the tax credits expire. In fact, we’re already seeing interest rates creeping up.
Additionally, it is predicted that foreclosures in our area will double, if not triple or quadruple (as anticipated nationally). Homes that sell after being foreclosed upon at decreased, bargain prices will serve as comps, thereby diminishing the value of your home.
For these same reasons, we definitely are encouraging buyers to buy NOW! You will not see in a very long time, if ever, a better opportunity for home purchases than in this first quarter of 2010 . Although we do expect more foreclosures in 2010, the benefit of decreased values may be wiped out by increased interest rates if you wait till later in the year to buy. So, get realistic and seize the opportunities!
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