Buyers Gain Power as Montana Housing Market Shifts

The long American sellers’ market appears to be ending, shifting leverage more toward buyers.

Realtor.com and senior economist Joel Berner report that the era of bidding wars is over, indicating a shift in housing market dynamics. This shift matters because it transitions power from sellers to buyers, reshaping pricing strategies and sales velocity.

Homes priced correctly now sell faster and closer to asking price, with those closing within four weeks fetching 1.8% more relative to asking price than most homes during the same period. Conversely, homes lingering on the market lose leverage and sell for about 1.3% less after 18 weeks. Single-family homes are selling for an average of 99.2% of asking price, while condominiums lag at 97.9%, reflecting a 6% drop in condo list prices since March 2022 compared to a 7.5% rise for single-family homes. Factors such as rising condo ownership costs and increased financial reserves following the Surfside, Florida collapse weigh heavily on the condo segment. Real estate agent Steve Reese confirms these trends in metropolitan Oklahoma City, underscoring the local variation in market behavior.

Montana, with its dispersed population and varied housing stock, could see similar buyer leverage emerge if local sellers adjust pricing accordingly. Given Montana’s preference for single-family homes, the state might experience more resilient prices than urban condo markets, though rising costs and local economic factors will influence outcomes.

Seller beware? The housing ‘bidding war era is over,’ report finds
By Andrea Riquier, USA TODAY