Montana Housing Market Analysis - July 2024
The housing market in Montana for July 2024 presents a nuanced picture with several key indicators showing varied trends. Below is a detailed analysis of the current state of the market.
Median Sales and List Prices
The median sales price for homes in Montana stands at $519,100, reflecting a slight decrease of 0.2% year-over-year (YoY). This marginal decline suggests a stabilization in sales prices. On the other hand, the median list price has seen a more significant drop of 6.5% YoY, now at $574,900. This indicates that sellers might be adjusting their expectations in response to market conditions.
Price Per Square Foot
The median price per square foot has increased by 4.5% YoY, reaching $298. This rise suggests that while overall prices are stabilizing or decreasing, the value per unit area is appreciating. Conversely, the median list price per square foot has slightly decreased by 0.7% YoY, now at $299, indicating a minor adjustment in listing strategies.
Sales and Inventory
The number of homes sold has increased by 3.9% YoY, totaling 1,092 units. Pending sales have also risen by 2.7% YoY, reaching 1,384 units. These increases in sales activity indicate a healthy demand in the market. New listings have surged by 11.4% YoY, now at 1,666, and inventory has seen a substantial increase of 29.1% YoY, totaling 5,732 units. This significant rise in inventory suggests that the market is becoming more favorable for buyers.
Market Dynamics
The months of supply have doubled YoY, now standing at 5.20 months. This increase indicates a shift towards a more balanced market, moving away from the seller's market conditions seen previously. The median days on market have increased by 9.0% YoY, now at 63 days, suggesting that homes are taking slightly longer to sell.
Price Adjustments and Market Activity
The percentage of price drops has increased by 2.3% YoY, now at 27.3%, indicating that sellers are more frequently adjusting their prices to attract buyers. The percentage of homes going off the market within two weeks has decreased by 8.7% YoY, now at 32.3%, suggesting a slight cooling in the speed of transactions.
Sale to List Ratios
The average sale to list ratio remains unchanged YoY at 0.0%, as does the sold above list ratio at 0.0%. These static figures suggest that the market is experiencing a period of equilibrium where sale prices are closely aligned with list prices.
In summary, the Montana housing market in July 2024 shows signs of stabilization with slight declines in median sales and list prices, increased inventory, and a balanced months of supply. While the market remains active with rising sales and pending sales, the extended days on market and increased price drops indicate a shift towards a more buyer-friendly environment.
