Missoula Real Estate Report
The numbers are in and Missoula real estate continues to see strong growth. Low inventory continues to put pressure on buyers giving them few options and higher prices with only 337 homes to look at in September for all price ranges.
Market Watch: Year to date, their have been 837 single family homes sales in Missoula or 1.4% less than same time last year. For Missoula, that equates to only about 12 homes less than 2018. Expect prices to increase over the next year but watch for softening sales numbers as a sign of changing market.
Months Supply of Homes for sale is one of the best indicators we have for the health of the Missoula real estate market. It takes into account how many homes are for sale compared to how many homes are selling per month to calculate supply and demand. A normal supply of homes is about 6 months. Meaning if no other homes come on the market, it will take 6 months at the current rate to run out of inventory. If the real estate market is over 6 months it is a buyers market. If it is under 6 months it is a sellers market.
Market Watch: With only 337 homes for sale, Missoula’s current absorption rate is 3.9 months and much lower than this point last year. Expect inventory of homes to continue to decrease in winter months putting upward pressure on price and downward pressure on options. Price ranges from $375,000 and down is experiencing an extreme sellers market. Don’t expect prices to soften in Missoula until absorption rates rise constantly to 5-7 months of inventory.
Price Per Square Foot
It is hard to price a home by square foot in our market and would only use it as a guide for establishing value for the simple reason that two homes with the same floor plan are priced very different depending on their amenities. So unless the homes are similar in quality the numbers can be way off. Pricing by the foot does give us an indication how building and labor cost have increased over the last few years. A 1,500 sq ft home in 2016 was about $80,000 less than it is today.
Buyers: Great homes are still coming on the market every day, however the good ones sell fast. Make sure you are working with a professional that is not only looking for new homes, but also has a system for finding off market homes as additional options. A determined buyer can still find a great home at a great price. For more information ask about our buyers advantage program.
Sellers: With low inventory and strong prices, it is a great time to sell. However, if you are like most sellers you will be left wondering where you are going to go next. Our team specializes in getting you from one home to the next with more options than you may realize. For more information please ask about your Client Transition programs.
Jeremy Williams / Owner – Broker
For more information: www.bannackre.com