MONTANA - If you want to buy a home in Montana, there are a few things to consider. First of all, home prices are on the rise in Montana. In the last year, they have increased 17.8% on average. Foreclosure rates in the state are expected to rise in the coming years. The average price of a home in Montana is now $710,428.
Home Prices Rose 17.8% Year Over Year To An Average Of $710,428 In Montana
Several real estate experts are downplaying their home price growth predictions, but Zillow, one of the most prominent websites on the web, recently revised its forecast. It now projects home prices will increase 14.9% from March 2022 to March 2023, a slight downward revision from its earlier forecast.
The Montana housing market has cooled down since August, and the increased number of homes on the market is dampening market activity. Meanwhile, home prices across the United States have risen five times faster than income. As a result, there are not enough homes to meet the demand.
Rising mortgage rates are pushing many first-time home buyers out of the market. That is not good for the housing market in 2023. As a result, demand for rental properties will increase. This will drive rents higher and contribute to inflation.
The housing market is far from sustainable. The housing bubble has stretched the housing market beyond capacity, leaving it vulnerable to rising mortgage rates and affordability crushing. According to Zillow's updated forecast for eight96 regional markets, home prices will fall in 259 markets, increase in 615 markets, and remain flat in 22 markets. If the trend continues, the housing market could reach a climax in 2023.
Home Prices Rose 17.8% Year Over Year To An Average Of $710,428 In Gallatin
In August, Montana home prices rose 17.8% year over year in Gallatin County to an average of $710,428, up from $710,428 in August 2016. The number of homes on the market decreased, but the median sales price increased by 12.3% to $489,500. Days on the 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 closed sales fell by 21. The number of new listings fell by 33% from August 2016 to July 2017.
The trend is still positive. The average home price in Gallatin County is 17.8% higher than the national median, although prices are still down 12.9% compared to the first quarter of 2022. Joanna Harper, president of the Gallatin Association of Realtors, believes the housing market is correcting itself despite the slowdown in the housing market. Meanwhile, MSU Professor of Economics Carly Urban offers a different perspective on the market.
The recent growth in home prices in Gallatin and other Montana cities is largely due to the region's lack of housing supply. The number of people moving out of big cities is decreasing, reducing the number of homes on the market. Furthermore, the amount of available land is shrinking, 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, the Missoula real estate market was already experiencing a housing affordability crisis as prices skyrocketed. Due to zoning regulations and approval processes that slowed construction, new homes were not being built at a rate that matched the demand. This resulted in a reduction in available inventory, which resulted in fewer entry-level homes on the market. In response, the city and county began several affordable housing initiatives and have changed the zoning codes in the city.
New research has shown that Montana's housing market will remain challenging for a while but will start to slow down and stabilize. According to the Bureau of Business and Economic Research at the University of Montana, population growth is increasing the demand for housing, which in turn is driving down the inventory. With a lack of inventory and high demand, there will be a shortage of two hundred and forty homes in Missoula by 2023.
While Missoula is 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 rent within 18-24 months. The development is being financed with federal and state grants and housing tax credits. In addition to the new projects, zoning codes and housing tax credits are also helping the housing market.
