Central Missoula, an area most easily identified as falling between Russell and Reserve street, used to actually be on the outskirts of town and featured homes on larger parcels of lands with farms and homesteads spread all around. As Missoula grew around this area it became incorporated with the city and started to fill in. Today you’ll find homes of all ages in this area, old and new, as well as some condos, townhomes, and multi-unit apartment buildings. Additionally you’ll even come across two farms that are still active as well as a few large fields where you’ll find horses or cattle grazing.
Looking at 2010 there were 125 total residential sales in this area with a median sales price of $170,000. For these sold homes their average time on the market was 109 days. The median list price was $174,900 showing that homes were getting roughly 97% of their original listing price. There were 4 foreclosures sold in this area in 2010.
Going forward to 2011 the number of sales dropped to 97 total sales and at a median sales price of $165,000. With these sold properties their average time on the market was 117 days. The median listing price was $168,900 showing that homes were selling for about 98% of their original listing price. The amount of foreclosure sales jumped dramatically, 16 total sales in this area, which represents 16.5% of the total market.
This area with its lower overall prices was an appealing neighborhood for first time home buyers in 2010 but as we see in 2011 its appeal slowed with a 22% drop in sales volume. The median price didn’t dip too bad, which is a bit of a surprise considering that the amount of foreclosure sales went from 4 to 16. This market saw some pretty heavily volatility considering the other neighborhoods that I’ve already reviewed so far.
Looking forward I’m assuming that foreclosures will remain a large factor in this area and median prices could continue to recede as well. A big challenge many of the homes face in this area is competition with new/newer affordable construction in other areas that are similarly priced and meeting FHA approval standards. For many of the homes in this area that are over 15 years old they’ll need updates and improvements to meet the ever stronger growing list that FHA requires for their lower-down financing programs.
Edit: Forgot to add absorption rates! Right now in this area I'm seeing that there are 12.25 months of supply currently listed for sale in this area. That's an over-supply for sure. This will probably only climb as the spring sets in as well as more new listings hit the market.