It appears that home sales prices in Missoula are not experiencing the same surge as in recent years. In fact, the number of houses for sale hasn’t been this high in nearly a decade.
The median price of all 476 homes sold in the Missoula urban area up to July 7 of this year is $558,500, according to the Missoula Organization of Realtors.
This represents only a 1.2% increase over the median price of $551,750 for the 918 homes sold in the city in 2023.
For Missoula County as a whole, the price stands at $557,383 for the 554 homes sold so far in 2024. This is a 1.3% increase over the county’s price of $550,000 in 2023.
If the current rate of increase holds, the jump in prices for 2024 would make it a much slower year compared to previous years. For example, the increase from 2022 to 2023 was 5.8%, which itself was a “deceleration” from even higher increases in previous years.
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Brint Wahlberg, a real estate agent with Windermere and the current board president of the Missoula Organization of Realtors, stated that sellers are currently receiving around 97% of their original list price.
He mentioned that last year, sellers were getting 99.5% of their list price, and even higher in 2021 and 2022.
In June, Missoula had a 4.3-month supply of homes for sale, which Wahlberg considers to be a balanced market. This level of inventory hasn’t been seen since November of 2015, providing buyers with more options and leading to more negotiation on prices.
Despite prices still rising in Missoula, buyers are not facing as rapid increases as in the past. Wahlberg noted that buyers having more choices can lead to a flattening of prices.
Rob Fleming, the branch manager and loan officer at Mann Mortgage in Missoula, mentioned the recent volatility in mortgage interest rates, with a 30-year fixed conventional loan rate currently around 6.875%.
Fleming advised against waiting for rates to drop significantly, as it’s uncertain when or if that might happen, emphasizing that buyers should consider acting sooner rather than later.
Adam Hertz, a Realtor with ERA Lambros Real Estate in Missoula, highlighted the high demand from first-time homebuyers and the shortage of inventory at lower price points.
He also mentioned the challenges faced by housing developers due to high construction costs and interest rates, which may be impacting the multifamily housing market.
The property market in rural areas of Montana, including the Bitterroot Valley, has also seen a slowdown post-pandemic, allowing buyers a bit more leverage in negotiations.
Kelly Whitmoyer, a Realtor with Glacier Sotheby’s International Realty, noted that while sellers are still getting close to their listing prices, buyers now have more room for negotiation.
She highlighted the shift in market dynamics compared to the red-hot sellers’ market of previous years, with more buyers realizing the current rate environment is here to stay.
Overall, the real estate market in Missoula is seeing some changes and adjustments, with both buyers and sellers navigating a market that is still evolving.
