Key Takeaways from the Annual Missoula Housing Report

Missoula, Montana

The Missoula Organization of REALTORS® (MOR) recently released their 2025 Five Valleys Housing Report, providing some great insights into home sales, pricing trends, and supply challenges. For those navigating the real estate market in Missoula—whether as buyers, sellers, or investors—here are the key takeaways from this year’s report:

1. Home Prices Are Rising at a Slower Pace

The median sales price of a home in Missoula reached $562,400 in 2024, which was a 2.25% increase from the previous year. This is a big slowdown compared to:

• 5.8% increase in 2023

• 15.5% increase in 2022

• 28.6% increase in 2021

This suggests that Missoula's housing market may be shifting back toward traditional norms after years of surging appreciation.

2. Home Sales Are Increasing for the First Time Since 2020

One of the biggest highlights from the report is that home sales volume is up for the first time in four years.

• 964 homes were sold in 2024, compared to 924 in 2023.

• While this is a positive move, it’s still well below the annual average of 1,352 homes sold between 2011-2020.

For sellers, this means buyers are active again, but competition is still tight due to ongoing supply constraints.

3. Negotiation & Time on Market Are Making a Comeback

The market is experiencing a return of negotiations and longer time-on-market—hallmarks of a more balanced real estate environment. For buyers, this could mean more opportunities to negotiate on price and terms. For sellers, pricing correctly and preparing your home for sale will be more important than ever.

4. Supply Challenges Are Still a Concern

Despite positive trends, Missoula is not yet in a fully healthy housing market due to ongoing inventory shortages:

• Absorption rate (the time it takes for homes to sell) is at 3.14 months—barely within the normal range of 3-9 months.

• Lot sales hit a 12-year low, with only 62 lots sold in 2024, compared to 194 in 2021.

This continued lack of available housing is keeping demand high and limiting options for buyers.

What This Means for You

If you’re thinking about buying or selling in Missoula, here’s what to consider:

• For Buyers: Prices are rising more slowly, giving you a better chance to enter the market before they climb further. With negotiations returning, you may have more flexibility in making offers.

• For Sellers: While demand remains strong, correct pricing and strategic marketing will be key in this shifting market. Homes are taking longer to sell, so preparation matters.

• For Investors: Missoula still faces supply challenges, and addressing housing availability will be critical for long-term market health.

To explore more details from the 2025 Five Valleys Housing Report, visit missoularealestate.com under "Market Data."

If you have questions about how this market impacts your real estate goals, feel free to reach out—I’d love to help you navigate your next steps in Missoula’s evolving housing landscape!