I’m back with your bi-weekly Western Montana real estate market update for the month of October.
In my last few videos, I’ve discussed information and tips for the sellers in our market; today, it’s all about the buyers. How can a buyer take advantage of this market?
Let’s face it: Buyers have had a rough time finding the homes they want in this market. There’s been very little to choose from, and those that are available have often had some patina on them. They’ve been combatting multiple-offer scenarios right and left, often giving up in the heat of a bidding war.
Now, however, the market is beginning to balance itself, shifting toward a buyer’s market.
Our average days on market is increasing. At the moment, it takes about 140 days for a home to leave the market. We’ve seen hundreds of price reductions coming through the MLS.
Back in May and June in Missoula, there were about 200 homes for sale. Now, there are about 400 homes for sale—our inventory has doubled.
A year ago, our interest rates were around 3%, where they’re now up over 5% for the first time in seven or eight years.
"There’s so much more to choose from now than there was before, so don’t wait for prices to drop."
What does all this mean for a buyer?
Well, sellers that have had their home on the market for a long period of time are starting to reduce their prices, and are also anxious to sell their homes before the wintertime. They’re beginning to realize they can no longer get these pie-in-the-sky prices. That means you can get great deals on homes available in the market.
Interest rates are set to up again, so you should think about getting in the market before that happens. If the rates go up just one percentage point on a $300,000 loan, that’s an increase of about $300 on your monthly payment. Keep that in mind if you were thinking of waiting until spring to enter the market.
There’s so much more to choose from now than there was before, so don’t wait for prices to drop. If your credit isn’t where you’d like it to be, we can put you in contact with lenders who can help you formulate a plan to get approved for a home loan as soon as possible.
For sellers, I have only one sentence: Prices are dropping, so you can either sell now or wait for them to drop even lower before you sell. The choice should be clear.
If you have any questions or are looking to buy or sell a home, reach out to us. We’re the best team to work within the area.