Download full report: Missoula Residential Real Estate – September 2016
Missoula Residential Real Estate By The Numbers:
- Homes sold September: 125; YTD 987
- Average days on market September: 101; YTD 116
- List-to-sale price September: 97%; YTD: 98%
- Median sold price September: $270,000; YTD: $255,150
- % homes sold under $350,000 September: 72%
- Homes actively listed at end of September: 410
- Months of inventory at end of September: 3
Supply & Demand for Residential Real Estate in Missoula
Sales of single-family homes in Missoula have been strong throughout the year. As of September 30, 2016 there were approximately 987 homes sold year-to-date, representing an increase of about 2.7 percent over the same period in 2015. For the last three years homes have been on the market for about four months prior to selling.
There has been a small uptick in inventory (homes actively listed for sale) in Missoula; low inventory of homes for sale over the last three years has factored into the gradual increase in median price. This year a slight increase in inventory occurred with average of 395 homes on the market per month during the first nine months of this year, compared to an average of 368 homes on the market during the same timeframe last year. However, the increase in inventory was not enough to stop the median price from rising.
Median home prices have increased steadily over the last three years. At the end of the month, the year-to-date median residential home sales price in Missoula was $255,150, which is about 6.1 percent higher than year-to-date median home prices at the end of September 2015.
New Construction
Throughout the first nine months of 2016 there have been 183 single-family, new construction permits issued in the city of Missoula, an increase of about 35.6 percent from the 135 permits issued in the first nine months of 2015. Building activity in Missoula tends to slow during the winter months. However, if the number of permits issued in the last quarter of 2016 are comparable to the number of permits in the fourth quarter of last year, 2016 could close out with more than 200 new construction permits issued throughout the year.
Overall, it appears construction has picked up in terms of single- and multi-family housing. Throughout the first nine months of the year there have been 6 duplex construction permits issued compared to 3 issued over the same time period last year. There has also been 15 new construction permits issued for residential properties with three or more units. The increase in permits could be a good sign that we will see more new construction in the coming months, helping to increase residential inventory.
Overall Short Term Outlook
Seller Recommendation: There is still a shortage of homes in certain price ranges and many buyers out in the market are unable to find a home that suits their needs and wants. We recommend to sellers that they either keep their home listed or put it on the market now. Homeowners who are competitively priced may entertain multiple offers; sellers are currently getting about 98 percent of asking price.
Buyer Recommendation: Though inventory levels have been increasing, there is still a shortage of homes on the market; be prepared to pay about 98 percent of asking price for a reasonably priced home. Prior to beginning your search we recommend that you are prepared with a loan pre-approval letter and ready to make an offer immediately to avoid a possible multiple offer scenario.
