What a difference a year makes! Last year at this time, we were reporting the highest home prices our area had ever seen. June 2022 saw the highest Average and Median Sales Prices across Western Montana counties. Now, one year later, while temperatures are heating up, local housing market has cooled, as prices continue to rightsize. What does this mean for you, your property values and real estate goals? Keep reading…
Mobile Readers: Swipe left on the tables below to view all data.
Average Sales Price By County
| Average Sales Price | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|
| Flathead | $772,239 | -5% | -15% |
| Missoula | $569,897 | +1% | -12% |
| Ravalli | $650,864 | +7% | -8% |
| Lewis & Clark | $448,656 | -8% | -4% |
Across Western Montana, we’ve seen a “flattening of the graph:” looking at Average Sales Prices, the line graphs appear to be flattening.
After the June 2022 price peak, home prices slowly began to drop, and over the last several quarters, have hovered at almost flat.
Average Sales Price By Town
| Average Sales Price | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|
| Whitefish | $1,287,958 | -2% | -7% |
| Kalispell | $597,519 | -2% | -17% |
| Bigfork | $925,178 | -18% | -37% |
| Missoula | $569,732 | flat | -7% |
| Helena | $447,513 | -11% | -7% |
We’re seeing similar trends in our key towns across Western Montana: prices are rightsizing, down from Q1 as well as the same quarter last year. While the numbers appear bleak, the line graph shows a much different picture – less jagged peaks and more calmer lines, especially in towns like Kalispell and Missoula.
Supply & Demand By Town
| Months Supply | % Change (vs LQ) | % Change (vs LY) | Average Days on Market | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|---|---|---|
| Whitefish | 9.0* | -4% | +150% | 170* | -11% | +32% |
| Kalispell | 3.9 | +18% | +86% | 109 | -3% | +43% |
| Bigfork | 7.1 | +65% | +184% | 106 | +2% | +47% |
| Missoula | 2.5 | +9% | +92% | 73 | +30% | +30% |
| Helena | 2.2 | +38% | +120% | 50 | -39% | -21% |
In general, we’re seeing a healthier inventory on the market, with homes sitting longer than in past quarters. Specifically in Whitefish, the Months Supply might be deceiving; when we remove all condos and townhomes (most of which are under construction), Whitefish’s Months Supply drops to 5.5 months, with an Average Days on Market at 129 days (Condos/Townhomes are looking at 14.0 Months Supply).
For those looking for a “more affordable” price point in Western Montana (which, for this report, we’ve identified as $850,000 and below), we see much less availability:
Whitefish:
- Median Days on Market: 70
- Months Supply: 2.8
Kalispell
- Median Days on Market: 54
- Months Supply: 2.6
Missoula
- Median Days on Market: 34
- Months Supply: 1.4
For those looking for single family homes in this price range, the competition is much more fierce.
New Listings
| New Listings | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|
| Flathead County | 835 | +100% | -12% |
| Missoula County | 576 | +108% | -8% |
| Ravalli County | 309 | +58% | -21% |
| Lewis & Clark County | 364 | +63% | -16% |
| Whitefish | 168 | +54% | -5% |
| Kalispell | 383 | +105% | -18% |
| Bigfork | 122 | +294% | +21% |
| Missoula | 456 | +97% | -3% |
| Helena | 280 | +68% | -16% |
Q2 (Spring into Summer) traditionally sees the greatest number of new listings, as homes show better with bright, green grass lawns and bright blue skies. While we’ve seen an increase in new listings compared to last quarter, we are still less than where we were last year at this time, again, identifying Western Montana’s greatest challenge as inventory (or lack thereof).
So What?
With inventory challenges, especially in certain sectors (affordable/affordable-ish and waterfront, to name a few), we’d still consider it a Sellers Market in Western Montana…however, there are some caveats:
Sellers: Work with your Real Estate Agent to ensure your property is show-ready. Gone are the days of rash decisions and waived appraisals from Buyers. Today, Buyers are approaching properties with more care and concern, knowing they have time to make an informed decision, rather than an emotional one. If you are able to address cosmetic updates or deferred maintenance before bringing your property to market, it will shine amongst the others. Curious what might need to be done to your property to get it show-ready? Contact us, we’d be more than happy to provide a free market analysis as well as action checklist to help you plan to go to market.
Buyers: With inventory still lacking, you might be waiting for that “perfect” property to hit the market. Even so, with Months Supply and Days on Market continuing to increase, you have more negotiating power than past quarters. When you do find the right home, working with an experienced Agent to help put a strong offer in place will put you in the right place. Additionally, we have strong connections with fantastic local lenders who have new products in place worth exploring; from rate buy-downs to down payment assistance. Contact us, we’d love to put you in touch with them!
No matter where you sit on the Real Estate spectrum: Buyer, Seller, Happy Homeowner or Curiously Considering a Move, we are here for you. Not only do we love bringing our clients’ real estate dreams to life, we love talking about real estate. If you’re curious or interested in sitting down to talk, we’d love to welcome you over to our office to talk shop over a cup of coffee…or something stronger. Just give us a call.
