Is Montana Facing A Housing Recession, And Is That A Good Thing?
The "American Dream" has been defined as homeownership for the longest time. However, for many Montanans, that dream seems much more like a nightmare when you look at the price of homes here in Big Sky Country.
You don't have to search far to see article after article about the rise in cost of housing in Montana, with areas like Bozeman and Missoula leading the pack. Over the last few years, it has become increasingly more difficult for the average Montanan to purchase a home.
I live in Bozeman and while I make more than the average median family income per year, I can't afford an average median single-family home.
According to our friends over at the Bozeman Real Estate Group, last month the median price of a single-family home here in Bozeman was 860 thousand dollars. A townhome or condo will cost you less, but the median price for both is just under 600 thousand right now.
Once again, more than the average Montanan can afford.
So, when I saw a news report about a "housing recession," I'll be honest, it piqued my interest. According to the New York Post, the combination of rising interest rates and the high cost of construction has caused home sales to decrease over the last several months. In fact, it's become so bad in parts of the United States that they are using the above term, "housing recession."
According to the article, August was a bad month for buying homes, as it hit its lowest point since 2014 (with the exception of the pandemic). The National Association of Home Builders did some research to find out what consumers are thinking and this is what they discovered:
"The NAHB’s latest findings also indicated that home prices are on the decline, with 19% of home builders that responded to the survey saying they’ve cut prices since July to encourage sales or protect against cancellations. Those listings had a median price reduction of 5% off their initial listing price."
I'm not sure 5 percent will make much of a difference here in Montana, but every little bit helps, right?
This is a tough spot to be in. For housing prices to come down, it seems we need some sort of economic shake-up. However, an economic shake-up could cost folks their jobs and incomes. I'm certainly not an expert on real estate, but it seems to me recession or not, we've got ourselves into a real mess here in Montana.
Credit: Bozeman Real Estate Group, New York Post
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