A Shift in Market Trends

Montana’s real estate is undergoing a transformation, and it’s creating a buyer’s market. After years of strong competition and rapid price increases in the housing market, things are cooling down and developing more balance. Home inventory has grown by 16.6%, and properties are taking an average of 109 days to sell in Montana.

In Missoula specifically, we’re seeing trends return to pre-pandemic levels, with homes sitting on the market longer and sellers becoming more realistic about pricing. In early 2025, 17.4% of Montana homes saw price reductions, and the typical transaction closed at 97.2% of the list price.

While Montana’s median home price sits above the national average, the market dynamics have shifted in favor of buyers. With decreasing competition, longer listing times, and steadily growing inventory, this is your time to make a move.

The Power of Negotiation

Another major advantage in today’s buyer’s market is the willingness of sellers to negotiate, which doesn’t strictly refer to price. Every seller has different motivations, but they all have at least one common goal: moving on to their next chapter. Here are some common seller concessions you can request:

• Closing cost assistance: Homebuying fees can often be 2-5% of the purchase price and add up quickly. Sellers are now more willing to cover part or all of these expenses to get the deal made.
• Rate buydown: Some sellers will contribute their own money to temporarily lower your mortgage interest rate, allowing your monthly mortgage payments to be reduced in the early years after purchasing a home.
• Home warranty: This can be a minimal cost to the seller but helps provide peace of mind for your first year of homeownership.

Keep this in mind when working with your Windermere agent, who can help you negotiate strategically and advocate for your best interests as the homebuyer.

Time is On Your Side

There was a time when we’d see multiple offers within 24 hours of listing, but those days have mostly passed, for now at least. With homes averaging 109 days on the market, you have the luxury of time, especially for:

• Evaluating your options: Visit homes more than once, at different times of day. You can start imagining your daily routines in the space.
• Due diligence: Ensure you’re scheduling comprehensive inspections, researching the neighborhood, comparing selling costs of neighboring homes, and reviewing HOA documents carefully, if applicable.
• Wait for the right fit: Rather than settling for “good enough,” you can hold out for the home that truly meets your needs and standards.

Make Your Move

So, how do you capitalize on this unique market moment? Here’s an action plan to start with:

Get pre-approved before you start seriously shopping. This shows sellers you’re a serious buyer and gives you confidence in your budget. Once you’re pre-approved, your offer is more attractive.

Partner with local expertise. Market conditions vary significantly by neighborhood and price point. A Windermere agent with deep local knowledge can help you identify opportunities, understand true market value, and negotiate effectively. We know which neighborhoods are seeing price reductions. This means sellers are motivated, and how to structure a good offer that’s likely to get accepted.

Think long-term buy and buy when you’re ready, not when you think the market has hit the “perfect” moment. If you’ve found a home you love in a location that works for your lifestyle, that’s your perfect moment.

Whether you’re a first-time buyer ready to enter the market, a growing family looking to upgrade your space, or someone ready to embrace the Montana lifestyle, we’re here to guide you through every step. The buyer’s market won’t last forever, but the new memories you’ll make in your Montana home will.

Ready to explore your options? Contact a Windermere agent today – let’s find your dream home!