Is there anything better than fall in Montana? The crisp, still mornings with their brilliant sunrises, vivid colors of the changing leaves, reds, yellows and golds swirling in the autumn breeze, and the occasional need for that extra layer - sweaters themselves feel therapeutic at this time of year. It's a bit startling to think we're heading into the last quarter of 2023, but before we do, it's time for the The Revel Roundup, dedicated to keeping you informed and up-to-date on all things Real Estate in Western Montana. Happy Fall, and happy reading!
Market Stabilization
We'll admit, it's taken awhile for our market to recover from the Pandemic-fueled buying boom, resulting in record high sales, record low mortgage rates and skyrocketing demand. Now, just one year since our market saw average sales prices hit an all time high, we're finally feeling the reins loosen and the market return to a bit of "normalcy." How, why and what does "normal" even mean? Read on for 3 signs pointing to Market Stabilization:
INVENTORY STABILIZATION
During the pandemic craze, Western Montana saw only 1-2 months of inventory available for Buyers (Missoula County even hit an all time low of 15 days of inventory in January 2022!), making the buying process quite frustrating for many. Now, however, inventory is stabilizing, much in part to the new construction developments around our state. In fact, new construction is stabilizing much of the nation's inventory trends as well. According to a National Association of Home Builders report released this summer, almost one third of all home sales in July 2023 were new construction.
For Buyers, this is welcomed news, as more inventory allows for more thoughtful, less frantic purchasing, ample time for due diligence and time to find the "right" home. For Sellers, you'll find success if your property shines from all angles. If you need, we can help provide feedback and recommendations to ensure it does just that.
PRICING STABILIZATION
As we've reported in the past, the frenetic pace of home sales and prices during the Covid boom were not sustainable. However, this past year, rapid price increases have slowed, leading to deceleration of appreciation (which is important to clarify - NOT depreciation).
According to Selma Hepp, Chief Economist at CoreLogic, “High mortgage rates have slowed additional price surges, with monthly increases returning to regular seasonal averages. In other words, home prices are still growing but are in line with historic seasonal expectations.”
LOCAL STABILIZATION
While Western Montana continues to attract Buyers from across the country (still considered a "hot" market in many sectors), our market remains cyclical. With that, we continue to see closings fall in line with the cycles over the course of the year, trending out over the past five (see graph, below). In short - our local market is returning to its trend lines, and a bit more "normalcy."
All in all, Western Montana real estate remains a strong, sound investment. From our infrastructure to our National Parks, schools and higher education opportunities to our outdoor recreation and seemingly endless state lands, property values - and the benefits that come with home ownership in the Treasure State - remain strong.
So What?
What does this mean for you and your real estate goals or current home equity? Are you grappling with the need for a larger space, yet don't want to give up your sub 3% mortgage rate? Are you considering tax implications for your current investments? We'd love to chat with you about your current goals, and develop a strategy to help you achieve them.
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Developing relationships-turned-friendships with our clients is what drives us, day in and day out. Regardless of where you are in your home ownership or investment journey, we are here and would love to help you however we can, whether that means recommending a handyman or winterization tactics. Feel free to give us a call, we'd love to help!
