New Listing! BERKSHIRE HATHAWAY HOMESERVICES COLORADO PROPERTIES MONTROSE $369,000 856 Barnwood 3 Beds 2 Baths 11,337 sq. ft. Don Bailey, 970.209.8257 Waterfront! OLATHE $465.000 55232 Hickory Road 3 Beds 2 Baths 1575 Autumn Barrett, 970.318.0708 New Listing! The Average Days on Market in Montrose have Increased over 17% compared to last year. If you'd like more Information about the value of your home, give us a call today. 17% OTTER POND $700.000 1815 Otter Pond Circle 4 Beds 3Baths 12,645 sq ft. Donna Harville Justin 97026 8316 HOME PRICES AREN'T DECLINING, BUT HEADLINES MIGHT MAKE YOU THINK THEY ARE If you've seen the news lately about home sellers slashing prices it's a great example of how headlines do more to terrify than clarity Here's what's really happening with prices The bottom in home prices are higher than they were a year ago at this time and they're expected to keep ring just at a sower pace But a recent article from Redfin notes Price Drops Hit Highest Level in 18 Months As High Rates Dampen Buyer Demond And that might make you think prices are declining Now, while it's true the latest report from Realtor.com also shows 166% of homes on the market had price reductions in May. which is up from 12.7% last May, that doesn't mean overal home prices are falling Mke Simonsen, CEO and Founder of Atos Research, says "Not only is the share of homes with price cuts elevated pored to one year ago but more price cuts are happening each week than last year on the other hand, the final sold price is the amount a buyer actually pays when the transaction is complete HERE'S THE MOST IMPORTANT THING TO NOTE: ACTUAL SOLD PRICES ARE STILL RISING, AND THEY'RE EXPECTED TO CONTINUE TO DO SO AT LEAST OVER THE NEXT 5 YEARS. WHAT DOES THIS MEAN FOR HOME PRICES So, while there's been an increase in price reductions recently this doesn't mean overal home values are declining instead a sign that demand is moderating And, as a result, seters are adjusting their expectations to align with today's market reality Even with more price reductions home values are still growing on an annual basis as they do nearly every year in the housing (FA), home prices went up 66% over the last year market According to the Federal Housing Finance Agency So while seler price reductions are often a leading indicator that prices may moderate in the months ahead which experts have been saying for a while is expected to happen they arent The key is knowing the difference between the asking price necessary reason for alarm The same article from Retina and the sold price UNDERSTANDING ASKING PRICE VS. SOLD PRICE in essence the asking price also known as a listing price the amount a seler hopes to get for their home when they list in reality, sellers can't just put any price tag on their house and expect to se Today's buyers are savvy customers, and when they aren't willing to pay a premium for a home because their budgets are strained by higher mortgage rates, selers need to adjust. And that's what's happening right now Based on market factors and what offers that seller receives that asking price can change if a seller isn't getting much foot traffic you may see them revise the price and make an adjustment to reignite interest in the home and sometimes that's because they've overpriced it from the start. That's where price reductions come in and when you see 'price drops' in a headine, it sounds like declining home prices BOTTOM LINE states those metrics suggest sole-price growth could softenin the coming months as persistently high mortgage rates turn off homebuyers For now, the median-home sale price is up 4.3% year over year to another record high and with inventory as tight as it is today, price moderationis much more likely in upcoming months than price decines WHY THIS IS GOOD NEWS FOR BUYERS AND SELLERS For buyers, more realistic asking prices mean a better chance of securing a home at a fair price it also means you can enter the market with more confidence knowing prices are stabilizing rather than continuing to skyrocket Forses, understanding the need to adjust your asking price can lead to faster sales and fewer price negotiations Setting a realistic price from the start can attract more serious buyers and lead to smoother transactions While the uptick in price reductions might seem troubling it's not a cause for concern. It reflects a market adjusting to new conditions. Home prices are continuing to grow just at a more moderate pace. bhhscolorado.com 1970.249.4663 Real estate services in Montrose and beyond! 11 Offices and over 160 real estate brokers Call one of our trusted real estate brokers Trena Unrein, Brian Unrein Autumn Barrett, Don Bailey. Jeff Keenfuss, Kree Christie, Linda Stel, Makaya Cervone, Michael Scott Dosch, Heidi Lutz, Mehdi Sepah, and Donna Justin New Listing ! BERKSHIRE HATHAWAY HOMESERVICES COLORADO PROPERTIES MONTROSE $ 369,000 856 Barnwood 3 Beds 2 Baths 11,337 sq . ft . Don Bailey , 970.209.8257 Waterfront ! OLATHE $ 465.000 55232 Hickory Road 3 Beds 2 Baths 1575 Autumn Barrett , 970.318.0708 New Listing ! The Average Days on Market in Montrose have Increased over 17 % compared to last year . If you'd like more Information about the value of your home , give us a call today . 17 % OTTER POND $ 700.000 1815 Otter Pond Circle 4 Beds 3Baths 12,645 sq ft . Donna Harville Justin 97026 8316 HOME PRICES AREN'T DECLINING , BUT HEADLINES MIGHT MAKE YOU THINK THEY ARE If you've seen the news lately about home sellers slashing prices it's a great example of how headlines do more to terrify than clarity Here's what's really happening with prices The bottom in home prices are higher than they were a year ago at this time and they're expected to keep ring just at a sower pace But a recent article from Redfin notes Price Drops Hit Highest Level in 18 Months As High Rates Dampen Buyer Demond And that might make you think prices are declining Now , while it's true the latest report from Realtor.com also shows 166 % of homes on the market had price reductions in May . which is up from 12.7 % last May , that doesn't mean overal home prices are falling Mke Simonsen , CEO and Founder of Atos Research , says " Not only is the share of homes with price cuts elevated pored to one year ago but more price cuts are happening each week than last year on the other hand , the final sold price is the amount a buyer actually pays when the transaction is complete HERE'S THE MOST IMPORTANT THING TO NOTE : ACTUAL SOLD PRICES ARE STILL RISING , AND THEY'RE EXPECTED TO CONTINUE TO DO SO AT LEAST OVER THE NEXT 5 YEARS . WHAT DOES THIS MEAN FOR HOME PRICES So , while there's been an increase in price reductions recently this doesn't mean overal home values are declining instead a sign that demand is moderating And , as a result , seters are adjusting their expectations to align with today's market reality Even with more price reductions home values are still growing on an annual basis as they do nearly every year in the housing ( FA ) , home prices went up 66 % over the last year market According to the Federal Housing Finance Agency So while seler price reductions are often a leading indicator that prices may moderate in the months ahead which experts have been saying for a while is expected to happen they arent The key is knowing the difference between the asking price necessary reason for alarm The same article from Retina and the sold price UNDERSTANDING ASKING PRICE VS. SOLD PRICE in essence the asking price also known as a listing price the amount a seler hopes to get for their home when they list in reality , sellers can't just put any price tag on their house and expect to se Today's buyers are savvy customers , and when they aren't willing to pay a premium for a home because their budgets are strained by higher mortgage rates , selers need to adjust . And that's what's happening right now Based on market factors and what offers that seller receives that asking price can change if a seller isn't getting much foot traffic you may see them revise the price and make an adjustment to reignite interest in the home and sometimes that's because they've overpriced it from the start . That's where price reductions come in and when you see ' price drops ' in a headine , it sounds like declining home prices BOTTOM LINE states those metrics suggest sole - price growth could softenin the coming months as persistently high mortgage rates turn off homebuyers For now , the median - home sale price is up 4.3 % year over year to another record high and with inventory as tight as it is today , price moderationis much more likely in upcoming months than price decines WHY THIS IS GOOD NEWS FOR BUYERS AND SELLERS For buyers , more realistic asking prices mean a better chance of securing a home at a fair price it also means you can enter the market with more confidence knowing prices are stabilizing rather than continuing to skyrocket Forses , understanding the need to adjust your asking price can lead to faster sales and fewer price negotiations Setting a realistic price from the start can attract more serious buyers and lead to smoother transactions While the uptick in price reductions might seem troubling it's not a cause for concern . It reflects a market adjusting to new conditions . Home prices are continuing to grow just at a more moderate pace . bhhscolorado.com 1970.249.4663 Real estate services in Montrose and beyond ! 11 Offices and over 160 real estate brokers Call one of our trusted real estate brokers Trena Unrein , Brian Unrein Autumn Barrett , Don Bailey . Jeff Keenfuss , Kree Christie , Linda Stel , Makaya Cervone , Michael Scott Dosch , Heidi Lutz , Mehdi Sepah , and Donna Justin