Is the Missoula real estate market starting to normalize?
As I started to look into the numbers for July 2022, a smile crept on my face. Is the Missoula real estate market starting to normalize? Could it be? Now, I am not going to go on the record saying that we are out of the woods by any means. But, I do have a better feeling about the market today than I did a couple of months ago, let me explain.
Missoula housing inventory
Back in February, I reported that Missoula had 73 homes for sale in all price ranges. Well, in August we currently have 194 homes on the Missoula MLS in all price ranges. Last month we had 105 home sales and 130 homes coming to market. We are gaining homes folks!! Those are numbers that we love to see. With more inventory on the market, this will not only help buyers find a home but will also help sellers that are looking to stay in the area and find a new home to purchase. I can see this trend continuing for the next few months which will hopefully help potential sellers feel more comfortable listing their house.
List to sales price
If you remember back a few months ago, the list to sales price was 107%. That means sellers were getting around 7% over asking price for their home and that made it hard for a lot of buyers to compete with. In August, we are sitting around 102% list to sales price. Granted, that is still over 100% but the trend is showing that it is coming down to a more normal point. That will give buyers more power to negotiate.
Missoula median home sales price
Currently, the median price for a home is sitting around $530,000. I know that number still sounds high, but remember, that is an average. We have been seeing a good amount of homes in the $400,000 and even $300,000 price range coming to market.
Even though the Missoula real estate market is still an extreme seller’s market, we are seeing the numbers starting to trend into a more equal and normal market. What does this mean to you? If you are a seller, you are still going to get a great price for your home and will also have more options if you are looking to relocate to this same area. Sellers may also have a better time trying to use contingency offers on their house selling. If you are a buyer, you are starting to see more options of homes to look at on the market which means lower competition. You are also gaining negotiating power when it comes to putting in an offer. I expect to see these trends continue for the next few months going into fall, before the winter slowdown.
If you ever have any questions, please feel free to contact me at (406)926-6767