Interest in Montana real estate appears to be growing and summer may not be the only reason. However, sales in Jefferson County so far are not following that trend, according to the Montana Multiple Listing Service.
Broker Steve Youde with Avatar Realty in Helena said he’s noticed an increase in property inquiries from out-of-state folks, many from the West Coast and Colorado, who want to escape urban growth, political unrest and COVID-19.
Youde said one customer had been on a “three-year plan” to move to Montana, but with ongoing riots in his city, he’s ready to go now.
Mark Stahly, a broker with Big Sky Brokers in Helena, said he’s seen an increase in out-of-state buyers looking for land, as well as a surge in online inquiries. He said it’s hard to gauge the reasons for the increase, but speculated that COVID has sped up the plans of some people who were already thinking of coming to Montana to retire.
Both Avatar and Big Sky have properties for sale in Jefferson County.
Stahly said Californians have always been attracted to Montana for its lifestyle and low population density, but with COVID-19 thrown in the mix, “it’s fanning the flames.”
Stahly said some of his buyers have initially looked in Bozeman and the Flathead Valley, but ultimately have moved to this part of the state because prices are lower.
Across Montana, sales have hit a steep increase so far this year after a decline that began in 2018, according to the Montana Multiple Listing Service. The steady price increases that began in 2010 have persisted through the pandemic, while the average time on market has fallen from around 95 days in 2017 to less than 75 so far this year, according to Montana MLS.
The median sales price of homes in Lewis and Clark County has increased from about $245,000 in 2019 to more than $270,000 so far this year, according to the Montana MLS.
In Jefferson County, sales of single family homes were down 63% from May of last year, as was the median sales price, which fell nearly 13%, according to the Montana MLS. Closed sales in Jefferson County for January through May were also down by 13%, as compared to last year, and the median sales price fell by 1.4%, according to the Montana MLS. Information for June was not available by press time.
Youde and Stahly said inventory is a real problem as demand increases.
Business is good, but it’s frustrating because there aren’t enough properties, said Youde.
Stahly said COVID-19 initially put a cramp on showing houses to buyers, but “they got over that quickly.”
For those coming from out-of-state, concern over the virus seemed to lessen upon arriving in Montana, said Stahly.
They were coming from areas with more cases than Montana, which has far fewer.
“I really noticed that with out-of-staters,” Stahly said.
Youde said some folks will enter into a contract on a house before actually seeing the property and then come here to view and inspect. In some cases, there are buyers with competing offers, he said.
Jeff Yanzick with Realty 406 in Boulder said the local housing market is doing pretty well, and Helena is particularly busy. With increased interest in bigger markets such as Helena and Bozeman, perhaps it could eventually bleed over into Boulder, he said.
Yanzick is not sure where the buyers are coming from, but given the way the virus is spreading he’s not surprised that people may be attracted to Montana, given that it has one of the lowest number of COVID-19 cases in the country.
“We’re kind of the last best place,” he said.
