The numbers are in and they are surprising!
Even after being shut down for over two months, Missoula has seen a .02% increase in sales year over year. We are at the exact same point we were last year in terms of sales. Although some of the success of these numbers can be contributed to a better than normal start to January and February, Missoula has experienced more sales than expected during the shut down keeping us in line with the first half last year.
I am excited to see the first half numbers because they give us a better picture of how the city is responding in light of the shutdown. A few months are behind us and we can see into the future with more clarity. Here are the most telling numbers to where we are headed.
Currently, there are 177 homes under contract compared to 138 homes at the same time last year for a 28% increase. Homes continue to sell at a faster rate than last year and I am expecting this trend to continue to the end of the year.
Last year at this time there were 344 homes on the market. As of the beginning of June, there were only 265 homes available to over 80,000 people in all price ranges. We are experiencing an extreme shortage of homes needed to service Missoula residence.
The absorption rate is what we use to calculate the health of the market. Like supply and demand, it gives us an indication of how many buyers are in the Missoula real estate market compared to sellers. Around 6 months of absorption is considered a normal market. This is where homeowners can sell there home in a reasonable time and find an alternative home to move into.
Over 6 months is a buyers market and under 6 months is a seller’s market. The further you get from the 6-month line the more extreme the market is.
Currently, Missoula has an absorption rate of 2.22 months and accounts for the strongest spring seller’s market we have seen in 14 years.
Missoula Market Snapshot
With an 8.33% increase in Median Sales price and a very low supply of homes, look for sales to remain strong throughout the year. Low-interest rates continue to help fuel the market and give buyers an avenue to buy homes at a lower mortgage payment then they could on cheaper homes at this time last year.
With the crazy market, we don’t want you to look back a few years from now and wish you did something different. We are offering equity reports and portfolio reviews for anyone interested in learning their options. Please contact us at 406-926-6767 or a no-obligation review.
Jeremy Williams / Bannack Real Estate Group