Missoula Residential Real Estate – SEPTEMBER 2017


Print the FULL report: Missoula Market Report September 2017

Missoula Residential Real Estate – SEPTEMBER 2017

By The Numbers:

  • Homes sold September: 148;YTD 1,093
  • Average days on market September: 109YTD 106
  • List-to-sale price September: 99%; YTD: 99%
  • Median sold price September: $261,750; YTD: $267,776
  • % homes sold under $350,000 September: 75.7%
  • Homes actively listed at end of September: 420
  • Months of inventory at end of September: 2.8

Supply & Demand for Missoula Residential Real Estate

Demand for Missoula residential real estate continued to climb throughout the first nine months of the year and resulted in more sales in 2017 than during the same timeframe last year. At the end of September a total of 1,093 homes had been sold year-to-date, compared to 995 homes sold year-to-date last year.

A significant portion of the increase in home sales compared to last year was attributable to new construction or to-be-built homes. Of the 1,093 homes sold in the fist nine months of this year approximately 90 percent were existing home sales and 10 percent were new construction or to-be-built homes. As a comparison, in 2016 only about 3.3 percent of home sales in the first nine months were new construction or to-be-built homes. After subtracting new construction and to-be-built sales, there were 982 existing home sales through September 2017 versus 962 existing home sales through September 2016, which is an increase of 20 existing home sales, year-over-year.

The following chart shows Missoula residential real estate sales totals, by month, from 2014 through September 2017. The chart demonstrates the seasonality of home sales. Most sales happen during the summer months and the fewest sales happen 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.

Missoula Residential Real Estate Home Sales Trend_Sept 2017

Absorption Rate

Absorption rate is a measure of how fast the homes are turning over in the market. According to the National Association of Realtors, six months of inventory (homes listed for sale) is considered to be a balanced market. Numbers over six represent a buyer’s market and those under six represent a seller’s market.

Overall, homes in Missoula were absorbed at a faster pace than in a normal, balanced market. Further, lower priced homes were absorbed (sold) at a much faster pace than higher priced homes. The inventory of homes for sale has not kept up with demand for the last couple of years. Ultimately, at the end of September most price ranges in Missoula 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 September.

issoula Residential Real Estate Absorption Rate by Price Range_Sept 2017

New Construction

At the end of September there was a total of 183 new single-family construction permits issued in the city of Missoula on a year-to-date basis. Comparatively, the same number of single-family construction permits were issued in the first nine months of last year. Additionally, sixteen new duplex construction permits were issued and eighteen new permits were issued for multi-family residential properties (properties with more than three living units) with a total of 441 living units added so far in 2017.

Overall, new residential construction appears to be growing in terms of both single- and multi-family housing.

Missoula Single Family Building Permits_Sept 2017

Short Term Outlook for Missoula Residential Real Estate

In conclusion, the Missoula residential real estate market has been and continues to be a seller’s market and is likely to remain a seller’s market throughout the rest of the year. Homes priced below $350,000 will continue to see the fastest pace of sales; some of the higher priced homes will likely pick up the pace compared to the last couple of years.

 

You can view our FULL report here in PDF format: Missoula Market Report September 2017

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Missoula Residential Real Estate Market – JUNE 2017


Open our FULL report HERE: Missoula Residential Real Estate Market Report June 2017

Missoula Residential Real Estate By The Numbers – JUNE 2017

  • Homes sold June: 184;YTD 633
  • Average days on market June: 82YTD 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.

Missoula Sold Homes History - June 2017

Absorption Rate

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.

June 2017 Missoula Residential Real Estate - Absorption by Price Range

New Construction

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.

Missoula Single Family Construction Permits

Short Term Outlook

Seller Recommendation:

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.

Buyer Recommendation:

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

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Residential Real Estate Update – March 2017


Open our FULL report HERE: Missoula Residential Real Estate Report_1Q 2017

Missoula Residential Real Estate By The Numbers:

  • Homes sold March: 92; YTD 237
  • Average days on market March: 118; YTD 128
  • List-to-sale price March: 98%; YTD: 99%
  • Median sold price March: $273,913; YTD: $263,809
  • % homes sold under $350,000 March: 78%; YTD: 76%
  • Homes actively listed at end of March: 326
  • Months of inventory at end of March: 4.1

Supply & Demand for Residential Real Estate in Missoula

Missoula residential real estate sales in the first three months of 2017 outpaced sales for the same time period of the last two years. Residential home sales totaled 237 for the first three months of the year, which is a 22.2 percent increase over home sales in the first three months of 2016.

Median home price in Missoula averaged $263,809 for the first quarter of the year, a 13.7 percent increase over last year. Homes sold during the last three months were on the market for a little over four months and sellers were receiving, on average, 99 percent of asking price. 

The following chart shows Missoula residential real estate sales by month from 2014 through March 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 green bars represent the number of homes under contract at the end of each month for the current year.

Missoula Home Sales History

 

Absorption Rate

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 March, most price ranges in Missoula 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 March.

Absorption Rate_Missoula Real Estate_YE 2016

New Construction

During the first three months of the year there were 54 single-family, new construction permits issued in the city of Missoula which equates to a 31.7 percent increase over the number of single-family construction permits issued in the first quarter of last year.

During the first quarter of this year there were also 5 duplex construction permits issued compared to 1 duplex permit issued in the first quarter of 2016. For multi-family residential properties (properties with more than three living units) there were 4 new permits issued for a total of 35 living units.

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.

Missoula Single Family new construction permits_1Q 2017

Short Term Outlook

Seller Recommendation:

There is currently 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. In this type of market, sellers should either keep their homes listed or, if they are ready to sell, put their homes on the market now. Homeowners who competitively price their homes may entertain multiple offers; sellers are currently getting about 98 – 99 percent of asking price.

Buyer Recommendation:

Though inventory levels have been increasing as spring approaches, there is still a shortage of homes on the market. Therefore, you should be prepared to pay close asking price for a reasonably priced home. And, prior to beginning your search we recommend that you 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 Report_1Q 2017

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Residential Real Estate Update – December 2016


Access the full report HERE: December 2016 Market Report

Missoula Residential Real Estate By The Numbers:

  • Homes sold December: 83; YTD 1,287
  • Average days on market December: 118; YTD 113
  • List-to-sale price December: 99%; YTD: 98%
  • Median sold price December: $254,900; YTD: $257,634
  • % homes sold under $350,000 December: 77%; YTD: 78%
  • Homes actively listed at end of December: 318
  • Months of inventory at end of December: 3

Supply & Demand for Residential Real Estate in Missoula

The Missoula residential real estate market continued to grow throughout 2016. Home sales in the city totaled 1,287 for the year, which is a 2.7 percent increase over home sales in 2015. Sellers whose homes sold during the last twelve months received between 97 and 99 percent of asking price.

Low inventory of homes for sale over the last couple of years has factored into the gradual increase in median price. This year a slight increase in inventory occurred with average of 385 homes on the market per month during the  year, compared to an average of 350 homes on the market during the same timeframe last year. However, the increase in inventory was not enough to stop the annual median price from rising. Homes were listed on the market for just under four months and sold for an average median price of $257,634.

Median Sold Price_Missoula_Dec 2016

Absorption Rate

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.

Overall, homes in Missoula were 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 the year, most price ranges in Missoula had less than six months of inventory and homes priced $450,000 and higher were running at six to a little over eight months of inventory.

Absorption Rate_Missoula Real Estate_YE 2016

New Construction

Throughout 2016 there were 223 single-family, new construction permits issued in the city of Missoula, an increase of about 28.2 percent from the 174 permits issued during the twelve months of 2015.

Single Family New Construction_Missoula_YTD Dec 2016

Overall, it appears construction has picked up in terms of single- and multi-family housing. There were 8 duplex construction permits issued compared to 6 issued in 2015. The increase in residential new construction permits could be a good sign that we will see more new construction in the coming months, helping to increase residential inventory.

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 competitively price their homes 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 – so be prepared to pay about 98 percent of asking price, on average, for a reasonably priced home. Prior to beginning your search we recommend that you be prepared with a loan pre-approval letter and ready to make an offer immediately to avoid a possible multiple offer scenario.

 

Access the full report here: December 2016 Market Report

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Residential Real Estate Update – September 2016


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.

 

ytd-sept_building-permits-issued_single-family_missoula_2016

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.

 

Download full report HERE

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Missoula Residential Real Estate Market Update – June 2016

Download full report: Missoula Market Report June 2016

By The Numbers:

  • Homes sold June: 149; YTD 577
  • Average days on market June: 108; YTD 114
  • List-to-sale price June: 98%; YTD: 98%
  • Median sold price: $257,000; YTD: $246,381
  • % homes sold under $350,000: 5%
  • Homes actively listed at end of June: 443
  • Months of inventory: 5

SUMMER HAS ARRIVED IN MISSOULA! Despite low inventory, Missoula residential real estate sales were strong over the last six months. Homes in Missoula priced below $350,000 are being absorbed at a much faster rate than higher priced homes, leaving less than six months of inventory and fewer options for buyers to choose from. Demand for the more affordable homes outpaces supply, creating a seller’s market for most price points under $450,000. Conversely, there is between 9 and 16 months of inventory of homes priced at $450,000 and higher.

Absorption by Price Range_Missoula

Summer months usually bring more buyers to the market and, unless more new listings priced below $300,000 come on the market in the next couple of months, we anticipate it will remain a seller’s market throughout the remainder of summer in Missoula. Buyers who are seriously looking should be prepared with a pre-approval letter from a lender and be ready to make an offer, especially if shopping for a home priced under $300,000. Sellers whose homes are competitively priced will likely see a lot of activity and could sell within 97-98 percent of asking price.

Download full report here: Missoula Market Report_June 2016

Jeremy Williams
Keller Williams



Missoula Residential Real Estate – 1st Quarter 2016

Download full report: Missoula Residential Real Estate Market Update_1st Q 2016

Missoula Residential Real Estate – By The Numbers:

  • Homes sold this quarter: 194
  • Average days on market: 112
  • List-to-sale price: 98%
  • Median sold price: $232,117
  • % homes sold under $300,000: 76%
  • Homes actively listed at end of quarter: 398
  • Months of inventory: 6.2

SPRING HAS SPRUNG! Missoula residential real estate sales were strong over the last three months despite low inventory. Homes in Missoula priced below $300,000 are being absorbed at a much faster rate than higher priced homes, leaving less than six months of inventory and fewer options for buyers to choose from. Demand for the more affordable homes outpaces supply, creating a seller’s market for most price points under $300,000. Conversely, there is between 11 and 42 months of inventory of homes priced at $450,000 and higher.

missoula residential real estate
Absorption by price range

Summer months usually bring more buyers to the market and, unless more new listings priced below $300,000 come on the market in the next couple of months, we anticipate it will remain a seller’s market throughout the summer in Missoula. Buyers who are seriously looking should be prepared with a pre-approval letter from a lender and be ready to make an offer, especially if shopping for a home priced under $300,000. Sellers whose homes are competitively priced will likely see a lot of activity and could sell within 97-98 percent of asking price.

Download full report here: Missoula Residential Real Estate Market Update_1st Q 2016

PS – We’ve moved to Keller Williams! Same great team, same excellent service!

Jeremy Williams
Keller Williams