Until the U.S. financial crisis and collapse in real estate across the nation, Montana had never seen home prices tumble in the majority of 
its housing markets. In fact, most of the states residential markets were so consistent many Montana homeowners were sure the value of their homes would never drop.
After a slowdown in home sales and reduction in most housing prices things are finally starting to sink in that prices don’t always just go up when it comes to real estate. Even the place that touts itself as “Big Sky Country” has seen home values plunge.
In Missoula, a combination of fewer sales and lower priced homes is troubling the market. But close to record low mortgage rates should boost sales over the year and provide a better home selling season during the spring and summer when most homes are sold in the region.
The market should show a vast improvement in time with the number of days it takes to sell a home declining, but that is expected to take a while in Missoula and the rest of the state. The average price of a Missoula home is forecast to drop another 3.5% during the year.
| City |
Forecast |
| Billings |
− 3.6% |
| Missoula |
− 3.5% |
| Great Falls |
− 3.8% |
| Bozeman |
− 4.2% |
|
|
In Billings, the largest city in Montana, home sales declined over the year, putting pressure on home prices. The foreclosure crisis hasn’t been as severe in Montana as many other states, but a surplus of properties on the market is hurting sales, despite their being fewer homes listed this year. |
New home construction is also troubling the market with nearly half as many new home building permit applications. Billings is projected to experience sluggish housing sales through the year on 3.6% deflation.
Montana has less than 1-million residents and with a smaller population than many other states any increase in housing sales is valued. Driven by low mortgage rates, Bozeman should see more housing sales in 2012 on projected annual housing deflation of 4.2%.
In Great Falls, an uptick in commercial construction may be a precursor for a rebound in new home construction. Commercial building permits are three times that of the downturn in 2010. Home sales, however, remain slow in the region, which should see a boost during the warmer summer selling season. Home prices are projected to drop another 3.8% in 2012.
