What You Need to Know About the Montana Real Estate Market in 2023

Did you know that 73% of people are moving to Montana?

Investing in real estate can be a great way to build wealth, but it’s important to understand the current market conditions before you make any decisions.

With so much uncertainty in the economy right now, it can be difficult to know what the future holds for Montana’s real estate market this year.

Don’t worry – we’ve got you covered! Keep reading because this property guide will provide all of the information you need to know about investing in Montana real estate in 2023 and help you make an informed decision that works best for your financial goals.

What Is the Current State of the Real Estate Market In Montana?

The real estate market in Montana has been booming over the past few years. Zillow reports that the current median sale price for homes in Montana is around $376,400 – an impressive 5% increase from last year’s data.

This includes both single-family houses and condos/townhomes making them relatively affordable options for prospective buyers.

In terms of rental properties, vacancy rates are currently hovering around 4%, which means that there is a healthy demand for rental properties across the state. The average rent for one-bedroom apartments is around $890 per month, with two bedrooms commanding an average of $1,065.

Montana also has some of the lowest property taxes in the nation at .69% – making it an attractive option for real estate investors who are looking to save money on their investments.

Overall, Montana presents a viable opportunity for those looking to invest in real estate this year. With relatively low prices and high demand, now could be a great time to take advantage of the current market conditions and make a smart investment.

Factors Affecting Montana Housing Market

Several factors are influencing the current state of the Montana housing market. Let’s look at them now:

Mortgage Rate Interests

If you’re looking to invest in Montana real estate, then you may be happy to know that mortgage rates are still relatively low. The average 30-year fixed mortgage rate stands at 3.12%, which is a slight increase from last year’s figure but still much lower than the historical average of 6%.

This makes it easier for aspiring homeowners and investors to acquire financing for their property purchases.

Population Growth

The population of Montana has been steadily growing over the past few years, and this trend is expected to continue into 2023. With more people moving into the state, there will naturally be an increased demand for housing – making now a great time to invest in real estate.

Job Market

The job market in Montana is continuing to improve, with unemployment rates currently sitting at about 6%. This creates a favorable environment for real estate investment since more people will have the means and resources to purchase the property.

Incentives Available In Montana

Furthermore, there are several incentives available in Montana that can help reduce your costs even further. Let’s look at them:

The Homestead Act: Qualifying Montana homeowners may be eligible for up to a $2,000 annual tax credit on their property tax payments.

Home Improvement Tax Credit: Montana offers homeowners a tax credit of up to $1,000 for any improvements made to their homes that add energy efficiency and value.

Property Tax Exemptions and Credits: Qualifying property owners may be eligible for a variety of property tax exemptions and credits depending on the county they are located in. These can include disabled veteran exemptions, senior citizen exemptions, and agricultural land exemptions.

Real Estate Investment Incentives: Those looking to invest in Montana real estate may also be eligible for several investment incentives. These could include reduced taxes on rental income, reduced capital gains taxes on sales, or special tax deductions available when investing in certain types of properties.

Best Places to Invest In Montana

Montana is a great place to invest in real estate. The state has several desirable markets, and the current market conditions are conducive to making a smart investment. Here are some of the areas you should keep an eye on when considering investing in Montana real estate:

Bozeman

This college town is home to a booming economy, with many high-tech companies choosing it as their home base. Bozeman’s job market is growing rapidly, which makes it very attractive for potential renters and buyers alike.

Bigfork

This small mountain town is right on the edge of Flathead Lake and offers stunning views of mountains, forests, and waterfalls. It’s also surrounded by ski resorts and trails that make it attractive for outdoor enthusiasts. The real estate market in Bigfork is booming, and prices are rising steadily.

Missoula

This college town has a vibrant food scene and plenty of cultural attractions that draw people from all over the state to visit. It’s also home to a diverse economy, with many companies setting up shop here, which provides plenty of job opportunities and keeps rental rates high.

Helena

Helena is the state capital, so it attracts a lot of businesses and government employees that provide stable employment for residents. The city itself offers plenty of amenities like great schools, parks, museums, and more that make it attractive for buyers looking for homes or families who want good quality living conditions.

Invest In Montana Real Estate Today

The Montana real estate market will continue to be an attractive investment due to its decent appreciation rates and high demand. Investors should be aware of the risks associated with this type of investment, but with proper research and a knowledgeable agent, these can be mitigated.

Are you interested in moving to Montana? If so, Bloomstone can help you. Don’t hesitate to contact us today if you want to find out more about our new residential subdivision which is located in the heart of Kalispell.