The Missoula housing market is a competitive one, with home prices rising steadily in recent years. There are a number of factors contributing to the high demand for housing in Missoula. One is the city’s strong economy and job market. Missoula is home to a number of major employers, including the University of Montana, St. Patrick Hospital, and Smurfit Kappa.
The city is also a popular tourist destination, with its proximity to the Rocky Mountains and Yellowstone National Park. Another factor driving up home prices in Missoula is the limited supply of housing. The city is growing rapidly, and there is not enough housing to keep up with demand. This is particularly true for affordable housing.
Missoula, MT Housing Market Overview (August 2023)
According to data by Realtor.com, in August 2023, the median listing home price in Missoula, MT was $649.9K, trending up 4% year-over-year. The median listing home price per square foot was $335. The median home sold price was $432.5K.
Sale-to-list price ratio: 94.6%
Homes in Missoula, MT sold for 5.4% below asking price on average in August 2023.
Market Dynamics in Missoula, MT
Missoula, MT is a buyer’s market in August 2023, which means that the supply of homes is greater than the demand for homes.
Median days on market: 35 Days
On average, homes in Missoula, MT sell after 35 days on the market. The trend for median days on market in Missoula, MT has gone down since last month, and remained flat since last year.
Neighborhood Insights
There are 20 neighborhoods in Missoula. Heart of Missoula has a median listing home price of $1.5M, making it the most expensive neighborhood. Marshall Canyon is the most affordable neighborhood, with a median listing home price of $197.3K.
Buying a Home in the Missoula Housing Market: Tips
1. Get pre-approved for a mortgage before you start your search. This will show sellers that you are a serious buyer and make it easier to close on a home quickly.
2. Work with a qualified real estate agent who can help you find homes that meet your needs and budget.
3. Be prepared to act quickly and make a competitive offer. Homes often sell within days of being listed.
4. Consider buying a home in a less popular neighborhood or outside of the city limits. Homes in these areas may be more affordable.
The Missoula housing market is challenging for buyers, but it is possible to find a home with the right preparation and strategy.
Missoula Housing Market Forecast 2023-2024
According to Zillow, the average Missoula home value is $547,623, down 0.6% over the past year and goes to pending in around 17 days. (Data through August 31, 2023)
Market Statistics (as of July 31, 2023):
- Median sale to list ratio: 1.005
- Percent of sales over list price: 50.8%
- Percent of sales under list price: 25.5%
- Median days to pending: 17
Housing Market Prediction for Missoula MSA
The housing market predictions for Missoula MSA indicate a positive trend in home value growth over the upcoming months. As of the base date on 31st August 2023, the average home value is expected to see a 0.7% increase by 30th September 2023, followed by a further growth of 1.6% by 30th November 2023. Looking further ahead to 31st August 2024, the prediction suggests a significant 7.6% increase in home value.
Are Missoula Home Prices Dropping?
Yes, over the past year, Missoula has experienced a 0.6% decrease in average home value. However, the forecast predicts an increase in home prices in the coming months.
Is Missoula, MT a Good Place to Invest in Real Estate?
Missoula, MT presents a promising opportunity for real estate investment, supported by several factors that make it an attractive choice for potential investors.
1. Population Growth and Demographics
Missoula has experienced steady population growth over the years. A growing population often translates to increased demand for housing and real estate. With its attractive lifestyle, educational institutions like the University of Montana, and a diverse demographic mix, Missoula is likely to continue attracting residents.
2. Strong Economic Base
The city boasts a robust and diverse economy. Key industries include education, healthcare, tourism, and manufacturing. Institutions like the University of Montana and major employers such as St. Patrick Hospital provide a stable job market, attracting individuals and families seeking stable employment and, subsequently, housing.
3. Tourism and Recreational Appeal
Missoula’s proximity to stunning natural landscapes, including the Rocky Mountains and Yellowstone National Park, makes it a popular tourist destination. Tourist influx often leads to short-term rental opportunities and increases the demand for vacation homes or rentals, which can be a lucrative sector for real estate investment.
4. Real Estate Market Trends
Despite recent fluctuations, the real estate market in Missoula has shown overall growth. With a median home value of $547,623 and a predicted increase in value, investing in Missoula’s real estate market can potentially yield significant returns in the future.
5. Investment Potential and Affordability
Compared to real estate markets in larger metropolitan areas, Missoula offers relatively affordable options for investors. Lower acquisition costs coupled with the potential for future appreciation make it an enticing proposition for both seasoned and new real estate investors.
Thus, considering its population growth, economic stability, tourism appeal, real estate market trends, and investment potential, Missoula, MT emerges as a promising location for real estate investment. However, as with any investment decision, thorough research, consultation with experts, and market analysis are crucial before making an informed investment choice.
References:
- https://www.zillow.com/Missoula-mt/home-values/
- https://www.realtor.com/realestateandhomes-search/Missoula_MT/overview