It is amazing how much can change in just a matter of weeks. Missoula started the quarter with the strongest sale numbers we have seen in years and ended the quarter with self quarantine orders.
Naturally, we have been seeing some changes in the market and even more people predicting how the quarantine is going to affect real estate. Their are many factors that play into the future of the real estate market and in many ways it is to early to tell. However, we will be looking at several early indicators for signs of a market shift.
Existing Inventory: Look for fast changes in inventory outside the usual spring increase as a sign of buyers pulling back or out of the market. As of now we are still maintaining a 12 year low of homes for sale.
Months Supply of Homes for Sale: Months supply is a measurement of how many homes are on the market compared to number of buyers. Over 6 months is a buyers market and under 6 months is a sellers market. After the first quarter Missoula continues to maintain a strong sellers market.
Pending Sales: As expected the number of new pending home sales in Missoula dropped off from previous years. There are many factors that go into this drop including the real estate industry trying to adapt to the quarantine restrictions and finding ways to continue business in this new environment. We are already seeing an increase in April and we will be watching this number closely over the next few months. If we don’t see an increase expect to see inventory increase.
Overview: At this point, Missoula is still in a strong sellers market and prices have continued to stay strong. Pending sales and inventory over the next few months will be the telling signs for a changing market. If Missoula is able to get back to work over the next few weeks, look for a rebound and a later peak in the market than usual.