Montana Housing Market Overview

The average home price in Montana has increased to $540,100 this January. This represents a 6.5% rise compared to the same period last year. Real estate in Montana saw 637 homes sold during this month. It’s an 8% increase from the 588 homes sold last January. The housing market in Montana now has properties listed for a high median of 109 days. This marks a significant 20-day increase from last year's figures.

What Does It Mean for Home Buyers and Sellers?
  • If You’re a Buyer: The Montana housing market is currently in your favor. Properties now remain available for as long as 109 days before going under contract. This extended timeframe gives you a great deal of leverage during price negotiations. Sellers face pressure when homes sit on the market for over 3 months. You can reasonably expect your offer to come in below the listing price. However, Montana home values have still increased 6.5%. So, take your time to compare multiple properties before you make a decision.
  • If You’re a Seller: Since homes for sale in Montana face longer wait times than before, your property will likely remain listed for longer than you’d like. But the Montana real estate market still shows positive price growth trends. Set realistic expectations and price your property competitively to avoid extending beyond the average wait. You should also consider offering incentives to stand out among competing Montana homes for sale.

Montana Housing Supply

Homes for sale in Montana increased to 4,843 available properties this January. It’s a substantial 16.6% growth in Montana housing inventory year-over-year. On the other hand, new listings in the Montana real estate market declined by 2.4% recently. This translates to 785 fresh properties entering a balanced market. The Montana housing supply currently stands at 6 months statewide, exactly matching the benchmark that indicates a balanced market.

What Does It Mean for Home Buyers and Sellers?
  • If You’re a Buyer: The significant growth in Montana's housing inventory gives you a lot more options and lesser competition than last year. The 6-month supply indicates a perfectly balanced market, which allows you to negotiate more effectively. However, the 2.4% decrease in new Montana houses for sale listings slightly favors existing sellers. You should focus on the substantial existing inventory for the best deals.
  • If You’re a Seller: With an increase in inventory and the 6-month supply period, your property is sure to face some competition. Strategic pricing becomes crucial with such abundant buyer options. You must distinguish your property among the other available Montana homes for sale. Focus your marketing efforts on unique features that buyers can’t find elsewhere. Professional photography and staging can give you crucial competitive advantages at this point.

Montana Housing Demand

The Montana real estate market shows clear buyer-favorable conditions this January. No homes sold above list price during this period statewide. Meanwhile, 17.4% of Montana homes saw price reductions, a 4.4% increase from January last year. The typical Montana housing transaction closes at 97.2% of the list price. It’s an increase of 5.1 points from last year's sale-to-list price ratio.

What Does It Mean for Home Buyers and Sellers?
  • If You’re a Buyer: Montana real estate currently offers you significant negotiating advantages. No homes for sale in Montana were sold above the asking price in the current market. The lack of bidding wars gives you space to make your offer. What’s more, 17.4% of sellers have reduced prices for homes in Montana. With the 97.2% sale-to-list price ratio, you can take time to identify homes where sellers show flexibility.
  • If You’re a Seller: You can expect offers around 97.2% of your list price. This percentage has improved from last year despite challenging conditions. Price your Montana home realistically from the start to avoid any reductions. Nearly one in five sellers are having to reduce their initial asking price. Use your marketing to emphasize unique features in your property that can justify your price point. Consider pre-listing inspections to prevent future price negotiation issues.

Is It a Buyer’s or Seller’s Market in Montana?

Strong
Buyer

Buyer

Balanced

Seller

Strong
Seller

Buyer’s Market

Seller’s Market

Strong Buyer: Buyers have ample housing supply to choose from, and sellers have to lower the prices or offer concessions to make the sale.

The Montana housing market tilts heavily in favor of buyers, despite rising home prices in the state. Values increased 6.5% to reach $540,100 this year. Houses in Montana now spend a median of 109 days on the market before selling. This extended timeline gives buyers more negotiation power. The slower pace allows for careful inspection of available options. In fact, more homes for sale in Montana will appear as inventory grows rapidly.

Buyers hold distinct advantages across Montana's real estate landscape. No homes in Montana sold above the asking price last month. This pattern reveals decreased competition among potential buyers. More sellers are reducing prices as listings linger on the market. Current conditions maintain a generous 6-month supply.

Overall, Montana presents an excellent opportunity for homebuyers this season. The market offers more choices, with homes for sale in Montana up 16.6%. Patient buyers can negotiate favorable terms with sellers. However, make sure you account for moving costs and home inspections.

Montana Housing Market Insights

The Montana housing market now favors buyers, with inventory up 16.6% from last year. Homes for sale in Montana now remain on the market for 109 days on average. 17.4% of listings saw price drops, while no houses in Montana sold above list price. In this climate, buyers can negotiate better terms with less pressure to make a quick decision.

The Montana real estate market shows strength despite this shift towards buyers. The median home price in Montana still rose by 6.5% compared to last year. Sales volume increased by 8% over the same period. As such, sellers must stage their houses in MT well to stand out from the competition. Realistic pricing from day one prevents stagnant listings in the current market. Winter buyers may find extra bargains as demand typically drops seasonally.

Nationwide Migration Trends

Montana attracted significant inbound migration during winter 2024-2025's peak moving season. Over 2,000 residents searched for in-state homes between Nov '24 and Jan '25. Hordes of new homebuyers arrive from Washington, California, and Oregon. The high quality of life and thriving job market draw families to the Montana real estate market. Cities like Kalispell, King Arthur Park, and Belgrade welcome the most new residents.

This migration pattern reflects the broader cost of living index trends. Montana's index is only 3.7% higher than the national average.

Frequently Asked Questions

Will the Montana housing market crash in 2025?

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Which city has the cheapest homes in Montana?

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What is the average mortgage rate for buyers in Montana?

How does Montana's housing market compare to the national market?

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