Markets and Land Prices
Montana has emerged at the forefront of the nation’s fastest-growing housing markets, according to a recent report by the financial research firm Bankrate. The study highlights a substantial shift, indicating that Montanans now need nearly 78% more income than pre-pandemic levels to acquire a typical home in the state. To meet the demands of the average monthly mortgage, residents of Montana must boast an annual income exceeding $130,000. Notably, Montana has witnessed a remarkable $200,000 surge in its median home price over the past four years. Jeff Ostrowski, Bankrate’s housing market analyst, underlined that local income levels have had a minimal impact on housing prices. The escalating housing costs primarily stem from an influx of affluent individuals relocating to the state, demonstrating a willingness to outbid previous buyers. Apart from Montana, states such as Utah, Tennessee, South Carolina, and Arizona have also witnessed significant escalations in the income necessary to secure a home.
How do land prices compare?
In 2023, the real estate market in Montana experienced a significant slowdown following the peak observed in 2021. Transaction volumes and available property inventory dwindled to levels not witnessed in more than a decade. The driving forces behind the heightened demand seen leading up to 2021, such as the effects of COVID-19, political uncertainties, and interest generated by the Yellowstone series, waned in 2022 and 2023. Consequently, the limited inventory constrained options for replacing properties, further suppressing transaction activities. Many sellers in the Montana real estate market typically seek replacement properties upon selling but face challenges in finding suitable alternatives in the current market conditions. Despite a significant portion of land transactions in Montana being cash-based, market dynamics were still influenced by prevailing interest rates. The Montana Land Source provides brokerages with unparalleled land statistics, and we depend on them to assist us in making educated and informative decisions when helping buyers and sellers. The tables below help illustrate statistics throughout the state.
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