A look at the first half of Missoula real estate numbers
Homes on the market
For some good news! The Missoula real estate market has had an uptick of properties hitting the market toward the tail end of the first half, from about 75 to 170 homes. Those numbers are a good sign of what might be coming shortly. Of those homes, about 65 of those are below $800,000. To counteract that, we are seeing a good amount of homes coming to market ranging from $300,000 – $400,000, which are in the price range of most buyers.
The list-to-sales price for the Missoula real estate market has not changed much. Last May, we saw that the list-to-sales price jumped up to a staggering 108% but the first half of 2022 averaged 104%. Currently, we are still sitting at 104%. I have a good feeling that number will slowly creep down to closer around 100% by the end of the year. With more homes on the market and those homes staying on the market a little longer, I am sure that the list-to-sales price will start to level out.
Average Missoula home price.
Last year we were looking at average home prices to hover around $500,000, well this year, we are looking at a touch over $600,000 on average per home. Those numbers look pretty scary, but I believe those numbers are a little skewed due to multiple one million dollar plus homes being sold. Remember, this is an average of home prices, so if you have multi million dollar homes being sold along with $500,000 homes being sold, that number will jump up quickly.
Another small but positive change is the absorption rate. Last year we were sitting around .8 months of inventory in the Missoula real estate market. At the end of the first half of this year, we are at 1.68 months of inventory. We are still in a seller’s market, however, the absorption rate is starting to trend upwards towards a normal market. How long will it take to normalize? That is anyone’s guess, but we will continue to watch the numbers and let you know what we see.
If you have any questions, please feel free to reach out and give me a call. You can reach me at (406)926-6767.