Why Missoula Buyers Are Finally Entering the Market

By Jason Baker

Jason Baker is the leading listing agent in the entire regional mls for residential and or total units sold, 8 years running. He is a tireless worker, and surrounds himself with the best admin and sales team in Montana...and the results speak for themselves.

More and more buyers are coming off the fence and entering the market. Do you want to know why? For some of you wondering what changed in our market to make buyers finally go house shopping, let me tell you about what’s happening in our current market and how it affects buyers and sellers.

Rise in inventory. Right now, Missoula County has 430 residential properties for sale—this massive uptick in inventory is something we haven’t seen for a very long time. If you’re a buyer, you will see a lot of properties out there, and you might even finally find the house you’re looking for.

With the increase in the number of houses on the market, we also see a drop in multiple counter-offer situations. This means that sellers are becoming more flexible and often accepting offers they might have previously declined. Everything we’ve mentioned points towards a shift to a more balanced market where buyers can indeed start to “win” again.

Lower interest rates. When rates drop, just like what happened in the previous weeks, you get more buying power. I’ll give you a concrete example of how lower rates affect your ability to buy a house.

Our average sale price in Missoula County is around $600,000. Taking into account our current interest rate, which is playing around 6% to 6.5% depending on your loan type, credit score, etc., you’ll be paying roughly $3,800 per month (excluding taxes and insurance).

Now, if the rate goes down to 5.5%, your mortgage payment will go down to $3,400 monthly. This will give you a $400 in savings for a $600,000 home.

The benefits don’t stop there because a drop in interest rate also increases your buying power. At a lower rate, with the same monthly payment of $3,800, you can buy a home priced at approximately $665,000.

Simply put, as rates go down, you can afford more houses for the same payment every month, and you can choose to look at larger, better properties without stretching your budget. You can either buy a better house for the same monthly payment of $3,800 or save the $400. Either way, that’s a great thing for you as a buyer.

When this happens, inventory levels are likely to drop. Buyers will be on the market, taking advantage of the lower payment—who doesn’t want to save $400 a month? Or who doesn’t want to buy a house for $60,000, $70,000, or $80,000 more for the same payment?

So buyers, be ready to move. It will be a competitive market soon, so take action now. If you’re ready to enter the market, it’s important to note that, as of recently, you need to sign a Buyer’s Representation Form before viewing properties with a licensed real estate agent. It might seem like extra work, but it’s a necessary step to move forward.

If you have questions about the market or want to explore available properties, please contact us at (406) 552-7548 or jason@jasonbakerteam.com. Exciting opportunities are out there, be ready to seize them.