Sizzling bacon! This market is hot! It is difficult to provide accurate statistics to show the influx in out-of-state buyers, but you cannot deny that sales in Montana have continued to upsurge. Real estate professionals and economists agree that 2020 held major changes for the market and attribute it to the new way we are defining home. Home is somewhere that individuals are now spending the majority of their time and not just to eat and sleep but to work as well. To add to that, employees are discovering that as long as they have the essential computer and internet connection, they can ultimately reside anywhere.
The professionals at Corder and Associates follow the local market trends, along with the synopsis from the multiple listing services. Our observations indicate a record-high demand and a straggling inventory that cannot support it. As a result of the demand and low inventory, prices are climbing higher. Montanan’s are seeing prices that exceed that of their average income. So, who’s buying? People out of state realize the importance of privacy and open spaces while the country endures the pandemic sending them searching for recreational properties or land to build upon. The price explosion can also be attributed to the purchase of vacation or investment properties. It may surprise you to hear that we aren’t just seeing the influx in urban areas like Billings or Missoula but in the smaller towns and rural communities as well. The lack of choices in urban cities are driving buyers to the smaller surrounding subdivisions. With market trends similar to these in the past, we could usually anticipate a deceleration after a couple of quarters. At this time, we do not see an end in sight.
The local market reflects what is happening on a national scale as well. Because we are licensed in Wyoming and Colorado, we see similar results there. Our presence in other states allow us to monitor trends and keep our clients up to date. Land is an investment that does not depreciate. The most consistent request we receive is people searching for a property with a little bit of acreage. Should a property become available that meets this criteria, you can expect to see it snatched up and off the market within hours of being listed. People want the space and away from neighbors. Additionally, Montana has the recreational activities that come with rural living: hunting, fly-fishing, horseback riding, hiking, ect. The outdoor opportunities drive the purchase home. At this time, the lack of inventory is the only thing holding buyers back. Properties hindered by covenants or conservation easements are not as popular as the free and clear piece of ground.
It may sound hyperbolic when we describe 2021 so far, but there is no exaggeration. It is insane! We work in Montana’s high-end real estate industry, and this year, our business has seen exponential, record-breaking growth!
