The Housing Market In Montana Has Changed Dramatically.

So much has been said lately about the housing market in Montana over the last few years.

Covid drove so many people to Montana for various reasons, such as the ability to work from home, and also the sparseness of population which helped reduce the risk of infection.

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Recently Business Insider released an article which asked the question on whether houses in each state are being overvalued or undervalued.

So, what makes a house over or undervalued? Well, according to Moody's economist Matthew Walsh, anything 10% over the perceived value of the house means the house is overvalued.

Knowing this then, where does Montana stand when it comes to being over or undervalued?

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Are Houses In Montana Overvalued Or Undervalued?

According to Matthew Walsh, he says, housing in America as a whole is overvalued.

According to the renowned market research firm's model, national median prices are currently 15.7% above their fundamental value, leading Walsh to believe they'll face another 4-4.5% decline in the coming months. The model accounts for variables like construction costs, household formation rates, and where home prices stand relative to median incomes. Nationally, homes are the least affordable relative to incomes that they've been in four decades, Walsh said.

This fact was hammered home by the New York Post recently as they reported that it now costs 52% more to buy a home than rent one.

But that brings us back to Montana, what about our housing market and our perceived value?

Currently Montana stands at 16.46% overvalued, which I feel most Montana residents would agree feels right.

Even a 4 to 5% drop as Matthew Walsh talks about still keeps Montana houses at an overvalued rate.

Check out the gallery below to see where we rank compared to the rest of the United States 👇