Missoula’s Real Estate Market May be Slowing Down…For Now
Winter in Missoula never seems to be a time when people are interested in buying real estate.
I've moved during the winter twice and both times it was miserable and cold. The first time I moved across the country--from Maine to Montana--in December, we got stuck in Bismarck, North Dakota. Temperatures were hovering around 0 degrees.
The second time, I moved in February. Never thought I'd have to plan my boxes and unpacking by which things needed to be protected from freezing.
Even if we're coming to a slower time of year for real estate, some new data may indicate that Missoula's real estate market is slower in general.
The National Indicator
It's made national news that real estate has been affected by current interest rates. According to quick Google search, as of November 8, a $300,000 loan with a 20% downpayment and a credit score of between 700-719 in Montana would carry an 8.302% interest rate on a 30-year loan. An 8% interest rate would be prohibitive for many potential buyers.
The Local Indicator
The Missoula Organization of Realtors (MOR) keeps track of Missoula County Market Statistics on its website. Reviewing data from today, there are two numbers that may indicate the market is slowing down:
- Number of Sales: -13.53% change from 11/05/22 to 11/05/23
- Days on Market: 106 mean average as of 11/6/23
What also puts this data in perspective is looking at the days on the market over time. According the realtor.com, when measured using the median days on average, houses are staying on the market longer than they were in 2020.
Median Days on the Market
- November 2020: 45
- November 2023: 64
But this trend may change quickly, according to Barbara Corcoran from Shark Tank. In a recent story for Yahoo! Finance, Corcoran said, "The minute those interest rates come down all hell's going to break loose and the prices are going to go through the roof." She even went as far as to say if interest rates go down, "We could have COVID [market] all over again."
As of November 5, the MOR says the median home price in Missoula County is $539,000 and as of November 6 there are 328 listings on the market.
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