Open our FULL report HERE: Missoula Residential Real Estate Report_1Q 2017
Missoula Residential Real Estate By The Numbers:
- Homes sold March: 92; YTD 237
- Average days on market March: 118; YTD 128
- List-to-sale price March: 98%; YTD: 99%
- Median sold price March: $273,913; YTD: $263,809
- % homes sold under $350,000 March: 78%; YTD: 76%
- Homes actively listed at end of March: 326
- Months of inventory at end of March: 4.1
Supply & Demand for Residential Real Estate in Missoula
Missoula residential real estate sales in the first three months of 2017 outpaced sales for the same time period of the last two years. Residential home sales totaled 237 for the first three months of the year, which is a 22.2 percent increase over home sales in the first three months of 2016.
Median home price in Missoula averaged $263,809 for the first quarter of the year, a 13.7 percent increase over last year. Homes sold during the last three months were on the market for a little over four months and sellers were receiving, on average, 99 percent of asking price.
The following chart shows Missoula residential real estate sales by month from 2014 through March 2017. By showing the years on top of one another, the chart demonstrates the seasonality of home sales, with the most sales happening during the summer months and the fewest sales happening in February of each year.
The green bars represent the number of homes under contract at the end of each month for the current year.
Absorption rate is an indicator for how fast our market is turning over. If the number of homes coming on the market is proportional to the number sold, the market will continue to strengthen. Conversely, a substantial increase in homes that are not absorbed by buyers will weaken the market. According to the National Association of Realtors, a normal market is six months of inventory.
Homes in Missoula are being absorbed at a faster pace than in a normal market; lower priced homes sold at a much faster pace than higher priced homes. At the end of March, most price ranges in Missoula had fewer than six months of inventory available.
The graph below shows how many months of inventory were available in Missoula by price range at the end of March.
During the first three months of the year there were 54 single-family, new construction permits issued in the city of Missoula which equates to a 31.7 percent increase over the number of single-family construction permits issued in the first quarter of last year.
During the first quarter of this year there were also 5 duplex construction permits issued compared to 1 duplex permit issued in the first quarter of 2016. For multi-family residential properties (properties with more than three living units) there were 4 new permits issued for a total of 35 living units.
Overall, it appears new residential construction is picking up in terms of both single- and multi-family housing. This could be a sign that we will see more new construction in the coming year, helping to increase residential inventory.
Short Term Outlook
There is currently a severe shortage of homes in certain price ranges and many buyers out in the market are unable to find a home that suits their needs, wants and budget. In this type of market, sellers should either keep their homes listed or, if they are ready to sell, put their homes on the market now. Homeowners who competitively price their homes may entertain multiple offers; sellers are currently getting about 98 – 99 percent of asking price.
Though inventory levels have been increasing as spring approaches, there is still a shortage of homes on the market. Therefore, you should be prepared to pay close asking price for a reasonably priced home. And, prior to beginning your search we recommend that you meet with your lender and be prepared with a loan pre-approval letter. You will want to be ready to make an offer immediately to avoid a possible multiple-offer scenario.
You can see our FULL report here: Missoula Residential Real Estate Report_1Q 2017