As we reported in the Q2 2022 Market Report (Part I), while the real estate market shifts and corrects itself, Western Montana is still strong. Just as we analyzed county data in Part I, Part II will focus on the details from key towns around Western Montana, from Flathead County to Missoula County and Lewis & Clark County.
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Average & Median Sales Price By Town
|Average Sales Price||% Change (vs LQ)||% Change (vs LY)||Median Sales Price||% Change (vs LQ)||% Change (vs LY)|
Home prices continued to rise in Q2, and at a higher rate than the prior four quarters. For example, analyzing Average Sales Price, Whitefish, Montana saw a -6% price drop between Q2 and Q3 2021, a +4% price increase between Q3 and Q4 2021, a +1% price increase between Q4 2021 and Q1 2022 and a massive +24% price jump from Q1 and Q2 2022. Other Western Montana towns saw similar gains.
So, will prices begin to decline? Even if prices decline, they will not do so dramatically. This team does not see a cliff where prices take a nose dive. Pricing in Western Montana, and especially in the sought-after towns like Whitefish and Bigfork, has been reset.
What we do think will happen, however, is a general plateauing of pricing.
Median Sales Price – Flathead County Towns
Median Sales Price – Missoula County and Lewis & Clark County Towns
Supply & Demand by Town
|New Listings||% Change (LQ/LY)||Under Contract||% Change (LQ/LY)||Closed Sales||% Change (LQ/LY)|
|ADOM||% Change (vs LQ)||% Change (vs LY)||Months Supply||% Change (vs LQ)||% Change (vs LY)|
Buyers rejoice! Coming off the scarcity of last year, and the dropping supply that began in 2020, we are finally beginning to see a correction in the market regarding housing inventory. The number of new listings are increasing substantially (high double digit increases, as well as a 102% increase in Bigfork, Montana) compared to Q1 2022.
As with the added inventory, the Months Supply has also increased dramatically, seeing anywhere from +63% increase (Whitefish) to +110% increase (Columbia Falls) to +130% increase (Missoula) versus the prior quarter, as well as +107% increase vs Q2 2021 in Whitefish, +170% in Kalispell, and +100% in East Helena, respectively.
Months Supply – Flathead County Towns
Months Supply – Missoula County and Lewis & Clark County Towns
As seen from the above graphs, inventory has begun to creep back up in Western Montana, allowing Buyers the opportunity to make informed, rather than (at times) rushed decisions as seen over the past several years.
For homeowners, your equity gains continue to be quite substantial. Even as the market shifts, pricing increases over the past several years have created equity you won’t see deplete. If you are curious what your property is now worth, or what it might fetch, in today’s market, contact us. Our team loves discussing the market and the potential of different property types, with our clients.
While inventory is increasing, it won’t yet outpace demand. Western Montana, and specifically, the sought-after towns with access to Flathead Lake (eg: Bigfork), ski resorts (eg: Whitefish) or proximity to Glacier National Park (eg: Columbia Falls, Kalispell) have been found – and the desire of those who wish to secure their piece of Montana – will continue to bring buyers here.
If you’d like to compare the above stats with those from Flathead, Missoula, Ravalli or Lewis & Clark County, you can read our Q2 2022 Market Report (Part I) here. Better yet? Give us a call or swing into the office to talk about it in person over a coffee or cocktail. We’ll be ready.