MISSOULA – The Missoula Organization of REALTORS® (MOR) released the 2020 Missoula Housing Report Mid-Year Update Thursday. Mid-year results show Missoula continues to experience strong demand and an under supply of housing.
- 2020 started very strong with homes sold in the first quarter up 22.5% over 2019
- April & May sales were down 17.2% & 16.3% respectively
- June saw a strong rebounded in sales, up 14.8%, resulting in year over year mid-year sales up 4.6%.
Even with a brisk home sales market, supply has not kept up with demand, as noted by the continued decline in absorption rate. Based upon a metric known as absorption rate (calculated by dividing the total number of available homes in the market by the number of homes sold in the prior month) 2019 finished just below normal market levels at 2.53 months of supply. A normal range is a supply of housing sufficient to support three to nine months of demand. In 2020 the trend has continued downward, with absorption falling to an all-time low of 1.53 months of supply at the end of June.
- Supply for the twelve neighborhoods we track in the housing report is tight, with four neighborhoods below a month supply and five below two months supply.
- Only two neighborhoods have normal supply, Rattlesnake and Grant Creek
- All homes priced $425,000 and lower are below normal market supply
The tight supply was a contributing factor in moving the median sales price of a Missoula home to a new high of $335,000 through June 2020, a 6.3% increase from the end of 2019. “Median” describes the point at which half the sales are above that price and half are below.
The Missoula Organization of REALTORS®(MOR) and our partners who prepared the 2020 housing report acknowledge the current crisis, and the significant impact the COVID-19 pandemic is having and will continue to have on our community. While it is not yet known the level of social-economic impact, we do expect it will impact incomes, home ownership, and all other fields that the housing report tracks. In hopes of brighter days ahead, REALTORS®, and our business partners are focused on ways to accelerate economic growth when we move from responding to recovering from this crisis.
Report Data Sources; Montana Regional MLS, the City of Missoula and Missoula County.