MONTANA- If you are interested in buying a home in Montana, there are a few things to consider. First, home prices are on the rise in Montana. Over the past year, they have increased by an average of 17.8%. Foreclosure rates in the state are expected to increase in the coming years. The average home price in Montana is now $710,428.
Home prices rose 17.8% year over year to average $710,428 in Montana
Many real estate experts play down their home price growth forecasts, but Zillow, one of the web’s largest websites, recently revised its forecast. It now forecasts house prices to rise 14.9% from March 2022 to March 2023, a slight downward revision from its previous forecast.
Montana’s housing market has cooled since August and the increase in the number of homes on the market is dampening market activity. Meanwhile, home prices in the United States have risen five times faster than incomes. As a result, there are not enough dwellings to meet demand.
Rising mortgage rates are pushing many first time buyers out of the market. This is not good for the housing market in 2023. As a result, the demand for rental properties will increase. This will drive up rents and contribute to inflation.
The housing market is far from viable. The housing bubble has stretched the housing market beyond its capacity, leaving it vulnerable to rising mortgage rates and crushing affordability. According to Zillow’s updated forecast for eight96 regional markets, home prices will fall in 259 markets, rise in 615 markets and remain flat in 22 markets. If the trend continues, the housing market could peak in 2023.
Home prices rose 17.8% year over year to an average of $710,428 in Gallatin
In August, home prices in Montana rose 17.8% year over year in Gallatin County to an average of $710,428, from $710,428 in August 2016. The number of homes on the market fell, but the median sale price rose 12.3% to $489,500. Days on market decreased from July to August and homes spent an average of seven days on the market. The number of new listings fell by a third to 91, and the number of completed sales fell by 21. The number of new listings fell 33% from August 2016 to July 2017.
The trend is still positive. The average home price in Gallatin County is 17.8% above the national median, although prices are still down 12.9% from the first quarter of 2022. Joanna Harper, President of Gallatin Association of Realtors, believes that the housing market is correcting itself despite the slowdown in the housing market. Meanwhile, MSU economics professor Carly Urban offers a different perspective on the market.
The recent growth in house prices in Gallatin and other towns in Montana is largely due to the lack of housing supply in the area. The number of people leaving the big cities is decreasing, reducing the number of homes on the market. Additionally, the amount of available land is decreasing, reducing the number of new homes for sale in the state.
Home prices rose 17.8% year over year to an average of $710,428 in Missoula
Earlier this year, Missoula’s real estate market was already experiencing a housing affordability crisis as prices soared. Due to zoning regulations and approval processes that slowed construction, new homes were not being built at a rate that matched demand. This has led to a reduction in available inventory, which has resulted in fewer entry-level homes on the market. In response, the city and county launched several affordable housing initiatives and changed the city’s zoning codes.
New research has shown that Montana’s housing market will remain difficult for some time, but will begin to slow and stabilize. According to the University of Montana’s Bureau of Business and Economic Research, population growth increases demand for housing, which in turn drives down inventory. With a lack of inventory and high demand, there will be a shortage of two hundred and forty homes in Missoula by 2023.
With Missoula experiencing a housing shortage, the city’s housing market is poised to rebound. A 200-unit affordable housing complex is currently under construction and should be ready for lease within 18 to 24 months. The development is funded by federal and state grants and housing tax credits. In addition to new projects, zoning codes and housing tax credits also help the housing market.