The Montana housing market in February 2025 presents a complex landscape, characterized by declining sales prices and a notable increase in inventory. The Median Sales Price for homes in Montana stands at $523,000, reflecting a year-over-year decrease of 3.2%. This decline in sales prices suggests a cooling market, potentially offering opportunities for buyers seeking more affordable options.

Conversely, the Median List Price has experienced a slight increase of 0.4% year-over-year, reaching $567,900. This divergence between sales and list prices indicates that sellers may still hold optimistic expectations, despite the downward pressure on actual sales prices. The median Price Per Square Foot has risen by 2.5% to $283, while the Median List Price per square foot has increased by 1.5% to $303, further highlighting the nuanced pricing dynamics within the market.

Sales activity has slowed, with 613 Homes Sold, marking a 5.4% decrease compared to the previous year. Pending Sales have also declined by 8.9%, totaling 805. This reduction in sales activity is accompanied by a significant drop in New Listings, which have decreased by 19.8% year-over-year to 747. The contraction in New Listings may contribute to the reduced sales volume, as fewer homes are entering the market.

Despite the decline in sales and New Listings, inventory levels have increased by 8.2% to 3,639 homes. This rise in inventory, coupled with a substantial 70% increase in Months of Supply to 5.9 months, suggests a shift towards a more balanced market, potentially easing the competitive pressures seen in previous years. The Median Days on Market have also increased by 8% to 115 days, indicating that homes are taking longer to sell.

The average sale to list ratio remains unchanged at 0.0%, and the sold above list ratio has decreased by 0.2%, reflecting a market where homes are generally selling at or below their listed prices. Price Drops have slightly decreased by 0.4% to 12.3%, while the percentage of homes going off the market in two weeks has fallen by 7.5% to 25.8%, further illustrating the cooling market conditions.

Overall, the Montana housing market in February 2025 is characterized by declining sales prices, increased inventory, and a slowdown in sales activity. These trends suggest a shift towards a more balanced market, offering potential opportunities for buyers while challenging sellers to adjust their pricing strategies to align with current market conditions.