Bad News For Montana? New Housing Predictions Are Alarming.
My buddy Abe is a real estate guy here in Bozeman, so whenever I have a question about real estate, Abe is who I ask.
So when I came across some information a week or so ago talking about how some experts are predicting a massive housing crash and I asked Abe what he thought and he told me "I'm actually hearing the opposite"
There is no way home prices can continue to skyrocket here in Bozeman is there? Surely they will drop off, I mean, who can afford these prices? Not a whole lot of people that I hang out with, that's for sure.
Oh, and it's not just in Bozeman either. It's happening all over Montana and the rest of the United States. Homes are in high demand and people are overpaying for them all over the country. So, if home prices aren't going to decrease, does that mean they're going to level off and stay where they're at now?
Wishful thinking, I'm afraid.
According to Fortune.com, we might not have seen the worst of it yet. The article which takes information from Zillow states that in the last year we've seen over an 18 percent increase for homes. Now, keep in mind that is the average for the country, it's been much higher here in Montana, especially in places like Bozeman and Missoula. In fact, in Bozeman alone, we've seen a 45 percent increase in the last year.
The article goes on to state that the 18.8 percent national jump is just the beginning. In fact, experts say that through this spring, we can expect that average to hit 22 percent across the country.
So, what does that mean for Montana? Well, if the predictions are true, it means that the cost of owning a home here will continue to increase through 2022 and into 2023 and then begin to level off. The truth is, it isn't just a Montana problem, it's a United States problem. Lots of people want to buy a home, there aren't a whole lot of homes for sale, so people are spending much more than before.
I came across an interesting comment on Reddit from a guy living in Missoula on a post about complaining about the high cost of rent in the city. He remarked about how his monthly rent had gone up 550 dollars a month then went on to say that he "just can't justify spending 500 thousand dollars on a 250 thousand dollar house."
Personally, I'm right there with him, unfortunately, it seems a whole lot of folks can and that seems to be the problem.