How is the start of 2023 looking for Missoula real estate?
As we start the new journey of 2023, we took some time to look over the Missoula real estate market numbers. Just like previous months, this market shows a buyers and sellers market combined into one. There looks to be a slow zone in the price range from $600,000 to around $700,000 where inventory is not moving as fast. It looks like most buyers are above or below that zone. What that means is that you have a group of buyers that can afford a purchase price of $0 – $600,000 and another group that can afford $700,000 and up. The homes that are listed in that zone are having a harder time selling and that starts to give buyers the edge on negotiation power.
Absorption Rate
I go in great depth on absorption rates in our previous video and blog. So if you are unsure on what absorption rate is, please refer to those. In a nutshell, absorption rate is how much inventory of homes that we have. A normal market has around 6 months of inventory and as we sit now, the absorption rate is 1.94 months of inventory. The homes are turning over about as fast as they are being listed.
List To Sales Price
List to sales price is the final purchase price of a home and if that price was above or below the original list price. 100% list to sales price means that the home sold for the list price, below 100% means it sold for less and above 100% means it sold for more. In January, the list to sales price was 96-97%. What that says to me is that buyers had a little negotiation power but not much. However, anything below 100% is good to normalize this market.
Luxury Listings
The one thing I found very interesting is on the side of luxury listings. In all my years of real estate in Missoula, we typically sell just a hand full of homes in the price range of $900,000 and up. In January, 8 homes in that price range have already sold and another 6 are under contract. If you are thinking of selling a luxury home, this is definitely the market to do it in.
If you have any questions on selling, buying or even investing in the Missoula real estate market, give me a call and I will do my best to answer any question you might have. You can reach me at (406) 926-6767.
Thank you
Jeremy Williams
