Happy New Year! From promising Consumer Price Index reports to corresponding lowered interest rates and increased mortgage applications, 2023 is already off to a good start. Before we get too ahead of ourselves, let’s look back at the Q4 market data to better understand – and anticipate! – what is ahead for Real Estate in Western Montana.
Mobile Readers: Swipe left on the tables below to view all data.
Average & Median Sales Price By County
| Average Sales Price | % Change (vs LQ) | % Change (vs LY) | Median Sales Price | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|---|---|---|
| Flathead | $791,700 | flat | +3% | $599,500 | +3% | +7% |
| Missoula | $544,872 | -7% | -4% | $519,950 | -1% | +8% |
| Ravalli | $622,756 | -7% | +2% | $570,000 | flat | +24% |
| Lewis & Clark | $447,794 | -6% | +6% | $400,000 | -1% | +2% |
Q4 was a bit of a mixed bag, with median prices increasing YOY, yet dropping from last quarter in Missoula and Lewis & Clark Counties, while increasing in Flathead County and staying flat in Ravalli County.
We’ve written quite extensively about the equalizing of home prices. While we have seen softening in our market, data indicates that “…there’s a strong case to be made that the worst may be behind us,” according to recent reports compiled from Case-Shiller, the FHFA, Black Knight and CoreLogic.
For those who have owned property for longer than 12 months, you have still earned equity in your purchase. Better yet, for those who purchased two years ago, home prices have risen significantly across the board:
- Flathead County: +44%
- Missoula County: +30%
- Ravalli County: +37%
- Lewis & Clark County: +27%
Median Sales Price by County
Average & Median Sales Price By Town
| Average Sales Price | % Change (vs LQ) | % Change (vs LY) | Median Sales Price | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|---|---|---|
| Whitefish | $1,143,792 | -7% | +4% | $856,000 | +4% | +23% |
| Kalispell | $635,856 | +2% | +6% | $522,000 | -1% | +6% |
| Bigfork | $854,462 | -21% | -34% | $692,871 | -8% | +11% |
| Missoula | $547,825 | -7% | -2% | $519,900 | -4% | +7% |
| Helena | $450,656 | -5% | +6% | $400,000 | -10% | +3% |
| E Helena | $453,544 | +2% | +5% | $424,400 | +1% | +1% |
Looking back, 2022 Q3 saw double-digit decreases from prices compared to Q2, whereas price decreases (if there were), were slighter, in the mid-to-low single digits for most Western Montana towns reported. This, once again, prompts the question: is the “worst” behind us?
Supply & Demand By Town
| Months Supply | % Change (vs LQ) | % Change (vs LY) | Median Days on Market | % Change (vs LQ) | % Change (vs LY) | |
|---|---|---|---|---|---|---|
| Whitefish | 6.1 | -13% | +154% | 124 | +52% | +520% |
| Kalispell | 3.2 | -16% | +167% | 89 | +53% | +424% |
| Bigfork | 4.6 | flat | +130% | 69 | +28% | +176% |
| Missoula | 2.1 | +5% | +163% | 56 | +19% | +460% |
| Helena | 1.8 | +13% | +157% | 58 | +16% | +544% |
| East Helena | 1.7 | +13% | +13% | 77 | +51% | +221% |
In general, homes are sitting longer on market than the previous two years, however, 2.5 – 4 months is an average amount of time to the closing table. Additionally, the amount of homes for sale in Western Montana is increasing, yet, inventory levels across much of the area are still below what is considered ‘healthy.’ Remember: the past few years were anything but normal. Real estate is a big ship, and it, too, will take time to turn it back to ‘normal.’
Homes For Sale By Town
Even though we all “know” that the real estate market is cyclical, it’s oftentimes important to “see” the data as well. Homes for sale in our area hit their lowest levels ever recorded during the pandemic. Watching inventory levels begin to return to a more ‘normal’ level is yet another indicator that the market is returning to an overall ‘healthy’ place.
So What?
Today, the market is extremely nuanced. We continue to have incredibly bespoke and specific conversations with our clients, as everyone’s needs, desires and situations are different. We are feeling optimistic, and want to convey that same sentiment to our clients. Curious to know why? Contact us, and let’s meet for coffee (or a drink!) and discuss.
