With Missoula housing prices increasing at an alarming rate many people have been asking if this is 2008 all over again. Of course there is no crystal ball, however it is clear that the fundamentals of the market are very different.
Missoula homes sales continue to stay strong. Driven by low-interest rates and out of state relocations, Missoula is experiencing its lowest inventory in over 20 years. As of early May, there were 128 homes on the market with 54 of them being single-family.
Absorption Rate is how we calculate supply and demand. An absorption rate of 6 months or the red line is considered to be a normal market. Under the red line is a sellers market and above is a buyers market.
We are trending at 1.2 months of inventory considered to be an strong sellers market. As rates slowly move up and more new construction homes come on the market third quarter, look for absorption to move more towards a balanced or equal opportunity market.
Buyers Recommendation: Don’t Wait! Homes will continue to apricate for the foreseeable future and doesn’t look like it will change any time soon. In addition, a .5% rate increase will cost you 5% of buying power causing your mortgage payment to be higher for the same home.
As a result, we have seen buyers gravitate to senior brokers and interviewing agents more aggressively in an effort to come out on top of the negotiations.
Sellers Recommendations: Are you in the home you want to be in for the long run? Is your family dynamic going to change?
We have proven systems for getting you from one home to another with options that are easier than you may realize.
Look forward to speaking with you soon.
Jeremy Williams | Broker | Owner @ The Bannack Real Estate Group