Missoula Residential Real Estate By The Numbers – JUNE 2017
- Homes sold June: 184;YTD 633
- Average days on market June: 82; YTD 112
- List-to-sale price June: 100%; YTD: 99%
- Median sold price June: $275,750; YTD: $267,626
- % homes sold under $350,000 June: 73%
- Homes actively listed at end of June: 432
- Months of inventory at end of June: 3.3
Supply & Demand for Residential Real Estate in Missoula
Missoula residential real estate sales in the first six months of 2017 continued to outpace sales for the same time period of the last two years. Residential home sales totaled 633 for the first six months of the year, which is a 9.0 percent increase over home sales in the first six months of 2016. Homes sold during the first six months of 2017 were on the market for a little over three and a half months and sellers were receiving, on average, 99 percent of asking price.
For the fist six months as a whole, median sold price was $267,626, which was an 8.5 percent increase over the first six months of last year. The median residential sold price in Missoula reached a record $275,750 in the month of June.
The following chart shows Missoula residential real estate sales by month from 2014 through June 2017. By showing the years on top of one another, the chart demonstrates the seasonality of home sales, with the most sales happening during the summer months and the fewest sales happening in February of each year.
The vertical bars represent the number of homes under contract at the end of each month for the current year.
Absorption rate is an indicator for how fast our market is turning over. If the number of homes coming on the market is proportional to the number sold, the market will continue to strengthen. Conversely, a substantial increase in homes that are not absorbed by buyers will weaken the market. According to the National Association of Realtors, a normal market is six months of inventory.
Homes in Missoula are being absorbed at a faster pace than in a normal market; lower priced homes sold at a much faster pace than higher priced homes. At the end of June, all price ranges under $500,000 had fewer than six months of inventory available.
The graph below shows how many months of inventory were available in Missoula by price range at the end of June.
During the first six months of the year there were 135 single-family, new construction permits issued in the city of Missoula, which is a 20.5 percent increase over the number of single-family construction permits issued in the first six months of last year.
During the first six months of this year there were also fourteen duplex construction permits issued compared to four duplex permits issued during the first half of 2016. For multi-family residential properties (properties with more than three living units) there were eleven new permits issued for a total of 256 living units. Ten of the new multi-family units were created through a commercial re-model project.
Overall, it appears new residential construction is picking up in terms of both single- and multi-family housing. This could be a sign that we will see more new construction in the coming year, helping to increase residential inventory.
Short Term Outlook
There is a severe shortage of homes in certain price ranges and many buyers out in the market are unable to find a home that suits their needs, wants and budget.
We recommend that sellers either keep their homes listed or put their homes on the market now if they are ready to sell. Homeowners who competitively price their homes may entertain multiple offers; sellers are currently getting about 98 – 99 percent of asking price.
Though inventory levels have been increasing each month since February, there is still a significant shortage of homes on the market; there is not enough supply to meet buyer demand. You should be prepared to pay close asking price for a reasonably priced home.
Prior to beginning your search you should meet with your lender and be prepared with a loan pre-approval letter. You will want to be ready to make an offer immediately to avoid a possible multiple-offer scenario.
You can see our FULL report here: Missoula Residential Real Estate Market Report June 2017