It is time once again for your Missoula real estate market report. As I sit back and think of all the market reports I have done this year, I can’t help but realize how crazy this year has been for real estate. At the beginning of 2022, we were sitting at less than one month of inventory and a list-to-sales price of 105%. Interest was in the 3% range and people had high hopes for the future. Boy, how the times have changed!
Missoula housing inventory
If you watch the MLS closely, I am sure you have noticed that there are more homes listed than at the beginning of the year. Yes, our inventory has gone up. Currently, we are sitting at just over 2 months of inventory and the trend looks good that it will continue to rise. It is still an extreme sellers market but with more houses on the market, it is starting to show that buyers will have more options when it comes to finding a home and a little more negotiating power when it comes time to put an offer in. It is still hard to say when the Missoula housing market will normalize to that 6 months of inventory threshold but if we continue like we are, the future looks bright.
We did it!! We got below 100%! The current list-to-sales price is now sitting at 98%. What does that mean? Well, the heavy bidding war is winding down and you don’t have to offer so much money over asking price just to try and beat out the 30 other offers that are on your dream home. It makes me happy that more first time home buyers who have been saving for years have a better shot at getting into a home and starting their home ownership journey that they have been dreaming about. I have a feeling that it will hang around 98% or even drop a point or two in the near future.
Mortgage interest rates
With everything in the Missoula real estate market looking better than the beginning of 2022, we now have to deal with rising interest rates. With home appreciation at an all time high for the last 2 years, the price of homes are a lot more expensive. Now add higher interest to the mix, it is making payments for a home out of reach for some. The good news is that there are multiple options when it comes to financing and ways to combat a higher mortgage payment. The feds have a hand in manipulating the interest rates to help drive inflation down and from what I have heard, it might hang around in the 6-7% for a little while and hopefully drop back down in the next year. This is just what I am hearing but nobody really knows.
From all the data that I have read, I believe we may have a stagnate market for the next few months. I don’t believe that it will go much faster or slower for most of 2023. Of course, we are heading into the winter months and typically, the market slows down a bit, which could be a great time to buy. There are still some great deals to be done now, so don’t just hunker down and wait till everything feels perfect to try and get into that home. If you have any questions on the Missoula real estate market or different financing options that could fit your needs, call my office, and let’s set up an appointment to talk.
You can reach me at (406) 926-6767 or [email protected]