We hope that you had a great Memorial Day Weekend. June is here and with that, we wanted to take a look at the numbers for the Missoula real estate market for May.
Surprisingly, in the Month of May, the list-to-sales price was the highest it’s been in the last two years at 108%. For Sellers, this means homes in the Missoula real estate market sold for an average 8% above the original asking price. Although this percentage is averaged across all homes sold, 108% clearly communicates a strong market for sellers.
For anyone not familiar with real estate absorption rates, it is based on supply and demand. A normal absorption rate is estimated at 6 months worth of inventory, which means that if no additional homes came on the market, it would take 6 months to sell all of the homes currently for sale. We consider 6 months of inventory a buyer’s market, and below is considered a seller’s market. Currently, we are sitting at 1.29 months’ worth of inventory, slightly higher than 1.08 last month. Therefore, we are clearly experiencing a strong seller’s market!
Homes on the market
We currently have approximately 135 homes on the market which is slightly higher than last month. We do believe that Missoula continues to be a nationally desirable location for home buyers and anticipate a steady flow of sales. Each month, we see more homes become available for sale. Although none of us can truly predict the future, all signs indicate the Missoula real estate market can absorb more homes being listed and sold. According to Pew, Montana was the third-fastest growing state between July 2020 and July 2021, behind Idaho and Utah. Recently, Kevin O’Leary, known as Mr. Wonderful on the hit show Shark Tank, noted that states across the country were competing with each other for business, and places like Montana were winning.
The market numbers do suggest that we might be on an upward trend to a more “normalized” market without having to compete with a frenzy of buyers for a handful of homes.
If you have any questions, please give me a call! Let’s discuss what is on your mind and how we can help.