Montana is experiencing a cooling housing market as the warmer summer weather sets in.
According to Brian Huskey, an agent with ERA American Real Estate in Billings, the current market is lukewarm with moderated demand from buyers. Many potential buyers are holding off due to concerns about housing affordability and interest rates.
In Billings, the Market Action Index score has dropped to 38.77 as of July 19, 2024, down from previous years. This decline is less severe compared to other hotspots like Austin, Texas.
Despite the cooling market, Billings remains relatively stable due to its strong job market in industries like refineries and healthcare. On the other hand, Bozeman, known for its luxury market, has also experienced a slowdown in housing activity.
Buyers in Bozeman are benefiting from lower list prices, especially in the higher price ranges. However, sellers are finding it challenging to adjust to the changing market conditions.
Statewide, Montana has seen a rise in inventory, offering more options for buyers. However, the rapid increase in home prices over the past few years has made it difficult for locals to afford homes, attributing to the influx of out-of-state buyers.
Local agents are hopeful that a potential decrease in interest rates could boost market activity in the upcoming months, especially as uncertainty surrounding the election year looms.
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