Press Room

MISSOULA – The Missoula Organization of REALTORS® (MOR) presented their 2023 Five Valleys Housing Report on Wednesday, March 15th, providing an in-depth review and key insights from the 2022 Missoula housing market. This year’s report illustrates that after two years of a steep rise in median home price, the Missoula housing market is
leveling off. 

2022 saw the transition from historically low mortgage interest rates (30-yr conventional 3.25%), to rates that have not been experienced since the early 2000s (30-yr conventional 6.625%). The interest rates combined with the increase in median home prices has aided in the slowed sales of homes, which was down by 12.5% in 2022, when compared with 2021.

The Absorption1 rate was at an all-time low of 0.64 months at the end of 2021 and has rebounded to a near normal market of 2.64 months at year-end 2022. A normal range is a supply of housing to support three to nine months of demand. The estimated supply gap at year-end (using the mid-point of a normal range and current sales), is approximately 212 homes for this point in time.

Active listings increased by 182%, to 172 in December 2022, despite new listings slowing for a second year, declining 9.5% year-over-year.
The median2 sales price of a Missoula home finished the year at a new high of $520,000 (up 15.6%) from 2021, however, this is a decline from the third quarter median price of $525,000, another indication of a leveling off.

Although Missoula city reported a record number of multi-plex permits, the Missoula rental market remained tight throughout most of 2022 averaging an annual vacancy rate of 1.2%, well below a “healthy” vacancy rate of 5% to 8%. Average rents increasing by 11.4%, with a 2-bedroom house increasing 9.7% and 2-bedroom multiplexes up 15.7%. Rent
increases were beginning to slow in the second half of 2022 and average vacancies finished the fourth quarter at 2.3%.

“Homes Missoulians can afford has been and remains a topic of discussion in our community” said MOR President Carly Kelley McDonnell. “We are pleased to open this year’s presentation showcasing some of the progress our community is making to address the supply shortage. These projects include public and private developments that will supply over 400
new homes Missoulians can afford in 2023,” she continued.

MOR notes the recent projects to increase homes Missoulians can afford are strong proof points of progress. MOR remains committed to ongoing partnerships throughout our community in implementing solutions to encourage housing at all price points.

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1 Absorption rate is calculated by dividing the total number of available homes in the market by the number sold in the last month.
2 “Median” describes the point at which half of the sales are above that price and half are below.

Report Data Sources; Montana Regional MLS, U of M Bureau of Business and Economic Research, the U.S. Census Bureau, the U.S. Department of Housing and Urban Development, the Montana Department of Labor and Industry, the Missoula Housing Authority, Homeword, the City of Missoula and Missoula County. The report uses the most recent available data, which is typically from 2021 but in some cases is from 2019.

The Missoula Organization of REALTORS® (MOR) is a trade association, representing 900 members in four western counties,
dedicated to advocating for equal housing opportunities and private property rights. Chartered in 1947, MOR is committed to
helping build a better Missoula and surrounding areas by providing superior service to members and the community.

MISSOULA – The Missoula Organization of REALTORS® (MOR) is pleased to announce the 2023 Board of Director Officers
and those Local Directors newly-elected by MOR membership.

2023 Board Officers: President – Carly Kelley McDonnell, Berkshire Hathaway HomeServices, President Elect – Brint
Wahlberg, Windermere Real Estate, First Vice President – Sheena Comer Winterer, Ink Realty Group, Treasurer – Judy
Gudgel, Berkshire Hathaway HomeServices, and Past President – Mandy Snook, Montana Land Company.

Newly-elected Directors in 2023: John Herring, RE/MAX All Stars, Josh Plum, Point 6 Real Estate, and Cindy Waltz, Ink
Realty Group. For a complete list of MOR’s Board visit: Board of Directors - Missoula Organization of REALTORS® (missoularealestate.com)

MOR’s strategic plans for 2023 will continue to focus on collaborating with private and public sectors on pathways for
attainable housing throughout all the communities their members serve. Several key efforts include:
• Ensuring that all neighborhoods have a REALTOR® champion as resource and advocate for key Real Estate topics.
• Continue to lead the timely and accurate reporting on housing data across the five valleys.
• Supporting community efforts to create a diverse, growing, and resilient local economy.

“Though market conditions have moved away from the frenzy of 2020 and 2021, it is more important than ever to trust
in the profession of REALTORs® to help provide guidance in today’s housing market,” said Jim Bachand.

“It’s the commitment that REALTOR® members make to a high standard of professionalism that’s sets them apart in the
Real Estate Industry,” Bachand continued.

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MISSOULA – The Missoula Organization of REALTORS® (MOR) provided an update on the Missoula housing market in a
virtual presentation of Q3 data from the Five Valleys Housing Market Report on Thursday.

The data suggests the Missoula urban area housing market is experiencing a sight cooling; illustrated by an average 21% decrease in sales across all unit types and a median price increase of about 18% year-over-year.

Additional supporting data is the median1 home sales price of $525,000 held steady from the second quarter to the third
quarter of 2022, and the median percent of original list price compared to final sale is hovering just around 100% across
all unit types at the end of Q3.

Supply of homes for sale continues to remain below ‘normal’ range, with an absorption rate2 of 1.82 months at the end
of September but increasing from 0.94 months in Q3 2021. 75% of the neighborhoods in the urban area are listed as under-supply or less than 3 months. The estimated supply gap in the month of September (using the mid-point of a
normal range), is a deficit of approximately 425 homes across all price points.

The rental market persists with a limited availability of rentals; the vacancy rate declined in 2022 to 1.0% through the
third quarter. This vacancy rates remains well below a ‘healthy’ market of between 5% to 8%. Average rents across all
types saw an increase of 8.6% annually. For example, a two-bedroom house experienced an average rent increase of
7.5% and a two-bedroom multiplex saw a 10.5% increase.

Residential building permits are tracking slightly above the ten-year average of 600 in the city of Missoula. A combination of single family at 107, and multi-family at 566 year-to-date, totals 673. County single family building permits are also close to ten-year average at 142. Final plat approvals through the third quarter created 69 buildable lots
in the city, which is slightly less than half of 2021 results. The county approved 185 lots through the third quarter, which
is only three less than all of 2021.

Mortgage rates have more than doubled in 2022, making the need for assistance programs even more important.
Programs and services reviewed included Down Payment Assistance (DPA) programs and financial education and
coaching services provided by Homeword. For a complete list of these programs and several others please visit Home Financing Resources.

Several exciting and notable Income Eligible Required Home Developments (f.k.a. affordable housing) in Missoula are
nearing completion. Projected for the first quarter 2023, roughly 400 homes are forecasted for occupancy; eclipsing the
total Income Eligible Required units built in the last decade.

MOR is continuing our collaboration with business and community leaders to identify, develop, and implement solutions
to encourage housing at all price points. Earlier this fall, MOR held a Real Estate Education Forum for local legislators,
legislative candidates, and other local government leaders to examine the creation of market rate housing, current
impediments/barriers to development, and development of ideas to reduce our housing deficit. We hope that the ideas
and action plans from the forum can be catalysts for increased housing growth in our communities.

Report Data Sources; Montana Regional MLS, U of M Bureau of Business and Economic Research, the U.S. Census
Bureau, the U.S. Department of Housing and Urban Development, the Montana Department of Labor and Industry, the
Missoula Housing Authority, Homeword, the City of Missoula and Missoula County. The report uses the most recent
available data, which is typically from 2022 but in a few cases from 2019.

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1 Median” describes the point at which half of the sales are above that price and half are below.
2 Absorption rate is calculated by dividing the total number of available homes in the market by the number sold in the
last month. A normal range is a supply of housing to support three to nine months of demand.

For Immediate Release

Missoula Organization of REALTORS® (MOR) announces Montana RPAC endorsement of Missoula County Commissioner candidate.

The Board of Directors of MOR are pleased to announce Montana RPAC endorsement of Kim Chambers for Missoula County Commissioner District 2.

MOR’s candidate review process like that of most trade associations is designed to include candidate questionnaires and in-person interviews to establish alignment with organizational positions. Copies of candidates completed questionnaires can be found on the missoularealestate.com website.

“The greater Five Valleys area faces ongoing challenges in addressing the shortage of housing. Missoula Organization of Realtors encourages all people in public office to partner with us in developing and implementing solutions to address this urgent need” - Mandy Snook, MOR Board President

We encourage all Missoulians to review the published candidate responses and participate in the upcoming elections. A complete list of MOR position statements can be found at https://www.missoularealestate.com/public-affairs.

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The Missoula Organization of REALTORS® (MOR) is a trade association, representing over 880 members in four western counties of Montana, dedicated to advocating for equal housing opportunities and private property rights. Chartered in 1947, MOR understands that changes are happening all around us created in large part by forces that are global in nature. These changes touch many aspects of the Missoula community. In the midst of the transitions, people want to maintain their connections to the place they call home. As an industry that builds community while carrying out everyday commerce, we choose to make a difference in the communities where our members live and work.
Contact: comments@missoularealestate.com
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For Immediate Release

Missoula Organization of REALTORS® (MOR) announces Montana RPAC endorsement of state legislative candidates.

The Board of Directors of MOR are pleased to announce Montana RPAC endorsement of the following candidates for the state legislature.  Marilyn Marler HD 90, Mike Hopkins HD 92, Jonathan Karlen HD 96, Lyn Hellegaard HD 97 and Mark Thane HD 99.

MOR’s candidate review process like that of most trade associations is designed to include candidate questionnaires and in-person interviews to establish alignment with organizational positions.  Copies of candidates completed questionnaires can be found on the missoularealestate.com website.

“The greater Five Valleys area faces ongoing challenges in addressing the shortage of housing. Missoula Organization of Realtors encourages all people in public office to partner with us in developing and implementing solutions to address this urgent need” - Mandy Snook, MOR Board President

We encourage all Missoulians to review the published candidate responses and participate in the upcoming elections. A complete list of MOR position statements can be found at https://www.missoularealestate.com/public-affairs.

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The Missoula Organization of REALTORS® (MOR) is a trade association, representing over 880 members in four western counties of Montana, dedicated to advocating for equal housing opportunities and private property rights.  Chartered in 1947, MOR understands that changes are happening all around us created in large part by forces that are global in nature. These changes touch many aspects of the Missoula community. In the midst of the transitions, people want to maintain their connections to the place they call home. As an industry that builds community while carrying out everyday commerce, we choose to make a difference in the communities where our members live and work.

Contact: comments@missoularealestate.com