Missoula’s Housing Market Showing First Stability in Years

It can still be very tough for buyers to find affordable homes in Missoula.

But with the median price showing only a modest increase in the past year, and the supply of homes for sale growing, research by the Missoula Organization of REALTORS® is showing the Garden City's housing picture is beginning to emerge from the chaotic market that developed right after the pandemic.

The 2025 edition of MOR's Five Valleys Housing Report shows a market much closer to "normal" for the first time in a decade, in some key categories.

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Missoula home prices still climbing, but increase slow

The median price of a Missoula home hit $562,400 at the end of 2024. That's an increase of 2.25% but is what MOR calls a "steep drop" from the rocket ride home prices were on following the pandemic. That's when the median price shot past half a million dollars, increasing 28.6% in 2021, and then shooting up another 15.5% in 2022.

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More Missoula houses for sale

At the same time, the "supply" of homes for sale has climbed back to 4 months, or longer in some neighborhoods. The exception is areas with homes under the median price, where demand remains high.

"We still have 13 of our 27 neighborhoods that we report on, are in an under-supply situation. And, no big surprise, of those 13, 8 of those neighborhoods all are under our market median price," explains MOR's Brint Wahlberg. "The demand, the need for housing under our median price is driving these low supply rates in these neighborhoods. Because it's affordability."

In fact, there are virtually no homes available for under $300,000.

"People are trying to find houses in those markets and it's very challenging." - Brint Wahlberg, Missoula Organization of REALTORS®

Sales despite higher interest rates

A major bright spot in the report for home buyers, and home owners, is that sales have remained fairly stable even with higher interest rates.

"The volume of homes was up very slightly, with 984 units sold," says Mandy Snook, another member of MOR's Coordinating Committee. "Last year, we sold 952 units. While a 3.25% increase may not feel very big, but is worth noting it's the first time that we've seen an increase in sales volume since 2020."

Snook says that stability is not only good for home buyers but for owners who aren't looking to move now and would like to see their equity preserved.