Montana Real Estate Market Trends

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Q4

2020

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Our Montana real estate market data is updated quarterly to aid in your real estate forecasts. Historical Montana real estate data and trends are included below the latest update. We break down our data by county, but we cover major cities in Montana including Missoula, Bozeman, and Helena.

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Q4 2020 Gardner Report

Montana
Real Estate Market Update

by Matthew Gardner

Below is the latest Montana housing market trends analysis. Additional links:

Historical Montana WA Data
Idaho Data
Utah Data
Other Regional Data

 

The following analysis of select Montana real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

 

Regional Economic Overview

Montana continues to see jobs return. As of November, the state had recovered 46,800 of the 63,500 jobs that were shed due to COVID-19. The job recovery was evident across the state, but current numbers show that Missoula’s employment levels are only down by 160 of the 7,400 jobs that were lost. The unemployment rate in the state was 4.9% in November, down from the April peak of 11.9%. Unemployment estimates across the various MSAs shows Billings’ current rate at 4%, Great Falls at 4.5%, and Missoula at 4.1%. New COVID-19 cases in Montana dropped as 2020 came to a close, which may be why the job recovery has been so robust.

montana Home Sales

❱ During the final quarter of 2020, 1,783 homes sold in the markets contained in this report. This was 3.8% lower than during the same period in 2019 and 29.9% lower than in the third quarter of 2020.

❱ Sales activity rose in six counties but dropped in three. The largest annual increase was in very small Broadwater County, where sales were up by 183%, which was an increase from 12 to 34 home sales.

❱ The overall drop in sales can be attributed to the woefully low number of homes for sale. The average number of listings was 47.1% lower than a year ago and 57.4% lower than in the third quarter of 2020.

❱ I would like to see inventory levels higher, but I do not anticipate that will occur until later in the spring of 2021.

A bar graph showing the annual change in home sales for various counties in Montana.

montana Home Prices

A map showing the real estate market percentage changes in various Montana counties.

❱ Year-over-year, home prices rose 14.2% to an average of $603,845. Prices were also 21% higher than in the third quarter of the year.

❱ Average home prices rose everywhere but Lake County, though this was likely because there were very few sales in that market.

❱ An improving economy, in concert with rapidly growing demand for housing, has driven significant growth in sales prices.

❱ Inventory levels are still well below where they need to be, but I am hopeful we will see more listings come online this year. That, combined with modestly rising mortgage rates, should soften home price growth somewhat.

A bar graph showing the annual change in home sale prices for various counties in Montana.

Days on Market

❱ The average number of days it took to sell a home dropped 28 days compared to the final quarter of 2019.

❱ Homes sold fastest in Gallatin and Park counties and slowest in Madison County. Even with the overall drop in market time, it took longer to sell a home in Lewis & Clark, Broadwater, and Jefferson counties than it did a year ago.

❱ During the quarter, it took an average of 89 days to sell a home in the region.

❱ Market time dropped eight days compared to the third quarter of 2020.

A bar graph showing the average days on market for homes in various Montana counties.

Conclusions

A speedometer graph indicating a seller's market in Montana.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The economy is recovering nicely, and the housing market is performing very well—if you are a home seller! Price growth is solid due to the lack of homes for sale. I am looking for inventory levels to rise in 2021, which, in concert with mortgage rates that seem to have bottomed out, should mean that price growth will taper somewhat.

It remains a seller’s market, and, given the factors described above, I have moved the needle a little further in their favor.

 

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate.

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

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Major Montana cities covered in this report:

Missoula

Bozeman

Helena

Belgrade

Helena Valley SE

Ennis

Hamilton

Livingston

Manhattan

Polson

Boulder

Ronan

Sheridan

Townsend

Three Forks

Montana counties covered in this report:

Broadwater

Gallatin

Jefferson

Lake

Lewis & Clark

Madison

Madison

Missoula

Park

Ravalli

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Gardner Report Archive

Montana
Historical Reports

2020
                    Montana Real Estate Market Update

Q1 2020
POST | (PDF)

                    Montana Real Estate Market Update

Q2 2020
POST | (PDF)

Market Trends Report Montana Q3 2020. Click to view full report.

Q3 2020
POST | (PDF)

Q4 2020 Montana Market Trends

Q4 2020
POST | (PDF)

2019
                    Montana Real Estate Market Update

Q1 2019
POST | (PDF)

                    Montana Real Estate Market Update

Q2 2019
POST | (PDF)

                    Montana Real Estate Market Update

Q3 2019
POST | (PDF)

                    Montana Real Estate Market Update

Q4 2019
POST | (PDF)

2018
                    Montana Real Estate Market Update

Q2 2018
POST | (PDF)

                    Montana Real Estate Market Update

Q3 2018
POST

                    Montana Real Estate Market Update

Q4 2018
POST | (PDF)

These Montana real estate reports, data, forecasts, and market trends are provided for informational use. If you find it useful, please properly attribute this resource with a link. Major regions of Montana include Glacier Country, Central Montana, Missouri River Country, Southwest Montana, Yellowstone Country, and Central Montana.