Missoula’s median home price remains stable, even with changing market
Homes are still more expensive than they were a year ago. But the Missoula Organization REALTORS® reports competition for homes has cooled as the market is impacted by inflation and higher interest rates.
The new 3rd quarter report shows little change in the median price for a Missoula home, which climbed above half a million dollars for the first time this year, 18% higher than last fall.
However, Brint Wahlberg with the Missoula Organization ofREALTORS® tells me the market remains relatively strong, unlike some cities where prices have plunged.
"In a lot of other markets, what we've noticed is you hit your peak in the first quarter of this year, and then with interest rate rising and slowing sales activity median sales prices nationally have started a drop," Wahlberg explains. "Missoula was a little higher in the first quarter, but we have not moved off of 525 second quarter, third quarter and, one month in the fourth quarter now as well too."
Missoula housing market sees a few more homes available
The report suggests a more stable housing market too, without the frenzy of competitive bids and home sales closing in hours we were seeing earlier.
Wahlberg says that means a few more homes are available, but the supply of homes for sale is still far below normal.
"Supply has doubled, but it is still below our normal price or our normal range that we need. So that's another kind of very interesting thing that availability and options are going up, but it's still not even in a normal range yet."
The exception is with homes costing more than 7-hundred 50-thousand dollars, where interest rates are taking a bite…
"That is, in normal supply, that is actually pretty close to equilibrium on availability versus sales activity," Wahlberg notes. "And it's also an area where we're starting to see, you know, it's a more challenging market compared to a lot of others. So that top end of Missoula's market is really getting these effects of this changing housing market."
The report reflects that "cooling", with an overall 21% decrease in sales across all unit types.