Access the full report HERE: December 2016 Market Report
Missoula Residential Real Estate By The Numbers:
- Homes sold December: 83; YTD 1,287
- Average days on market December: 118; YTD 113
- List-to-sale price December: 99%; YTD: 98%
- Median sold price December: $254,900; YTD: $257,634
- % homes sold under $350,000 December: 77%; YTD: 78%
- Homes actively listed at end of December: 318
- Months of inventory at end of December: 3
Supply & Demand for Residential Real Estate in Missoula
The Missoula residential real estate market continued to grow throughout 2016. Home sales in the city totaled 1,287 for the year, which is a 2.7 percent increase over home sales in 2015. Sellers whose homes sold during the last twelve months received between 97 and 99 percent of asking price.
Low inventory of homes for sale over the last couple of years has factored into the gradual increase in median price. This year a slight increase in inventory occurred with average of 385 homes on the market per month during the year, compared to an average of 350 homes on the market during the same timeframe last year. However, the increase in inventory was not enough to stop the annual median price from rising. Homes were listed on the market for just under four months and sold for an average median price of $257,634.
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.
Overall, homes in Missoula were 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 the year, most price ranges in Missoula had less than six months of inventory and homes priced $450,000 and higher were running at six to a little over eight months of inventory.
Throughout 2016 there were 223 single-family, new construction permits issued in the city of Missoula, an increase of about 28.2 percent from the 174 permits issued during the twelve months of 2015.
Overall, it appears construction has picked up in terms of single- and multi-family housing. There were 8 duplex construction permits issued compared to 6 issued in 2015. The increase in residential new construction permits could be a good sign that we will see more new construction in the coming months, helping to increase residential inventory.
Short Term Outlook
There is still a shortage of homes in certain price ranges and many buyers out in the market are unable to find a home that suits their needs and wants. We recommend to sellers that they either keep their home listed or put it on the market now. Homeowners who competitively price their homes may entertain multiple offers; sellers are currently getting about 98 percent of asking price.
Though inventory levels have been increasing, there is still a shortage of homes on the market – so be prepared to pay about 98 percent of asking price, on average, for a reasonably priced home. Prior to beginning your search we recommend that you be prepared with a loan pre-approval letter and ready to make an offer immediately to avoid a possible multiple offer scenario.
Access the full report here: December 2016 Market Report