Is the Missoula real estate market as cold as the weather is? Let us take a look. First off, let me just say that this report is going to be a little shorter than the ones in the past. The reason for this is the fact that I am in the process of putting together a deep dive lengthly video that will go over the Missoula real estate market for the entire 2022 cycle, but also how we think 2023 is going to go. With that, let’s get into it.
Missoula Houses On The Market
As of now, there are 212 properties on the Missoula market with 100 of those being single family houses. So far for 2022, there has been 975 sold listings and we expect to end the year at around 100 homes sold this year. In a normal market, we expect 1600-1800 homes sold for an entire year. As you can see, we are still well below a normal market.
Missoula Absorption Rate
Do you remember the inventory of Missoula real estate on the market earlier in the year? We were sitting at a little less than one percent. For the last couple months that number has gone up to about 2.2-2.5 months of inventory. We are still trending toward a normal market but we have a long way to go till we reach that 6 months of inventory that we all want to see.
If you read or watch my market reports you have heard me talk about list-to-sales price. List-to-sales price is the actual purchase price of a home when it goes under contract. If the home sells for more than what the listed price is, the number is above 100% and if it sells for below the listed price the number is under 100%. Back in May, the list-to-sales price was 107%, which means that on average, a home sold for around 7% more than it was listed for. Currently, we are sitting at 92% list-of-sales price. One of the reasons that I believe that number has come down even though we are still low on inventory, is due to the rise in interest rates.
If you look at the numbers, you might be conflicted at what to think. On one hand we are still very low on inventory and that makes for more of a buyers market, and on the other hand, our list-to-sales price is sitting on the side of a buyers market. Houses are still appreciating over the 4% yearly average which tells me that it is still a great time to buy a home. Like I said in the beginning of this blog, next month I will go over in greater depth the numbers for the entire year and what I think may happen in 2023.
If you have any questions, feel free to call me (406) 926-6767