Sources Are Saying Missoula Housing Market Is Overvalued: This Is by How Much
The answer is "a lot."
37.84% according to Moody's Analytics— check out this article from Fortune to see for yourself, but it's behind a paywall, so maybe take my word for it. Many Missoulians are hoping that our housing will become more affordable. Lucky for them, that process seems to have begun.
This article from Fortune used data from Zillow and found that housing prices in Missoula fell 1.23% between May of 2022 and August of 2022. It's not a big difference but it's possible that this is just the beginning. Though at this pace, we've still got a long way to go before Missoula's home prices match their actual value.
When did Missoula's homes become so overvalued? According to this article from Fortune, from March of 2020 to August of 2022 housing prices in Missoula rose 63.97%. So even if home prices decline to what Moody's Analytics says their value is, they'll still be 26.13% higher than they were before the pandemic.
There are many factors that explain why housing prices are falling. Mortgage rates went to over 6% this year, for the first time since 2008. "For the first time since 2008" is an eerie phrase, which makes me suspect that a full-blown housing market crash isn't out of the question. However, according to another article from Fortune, the experts at Zillow predict that Missoula's home prices will actually increase 5.3% from August of 2022 to August of 2023.
If the chance of Missoula's home prices increasing scares you, you're not alone. Here's an open letter to Missoulians hoping for a housing market crash.
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