Home prices have plateaued at around $550,000, down from a pandemic-era median peak of $690,000, since the Federal Reserve began raising interest rates in 2022. But real estate experts say prices remain out of reach for many homebuyers in the Flathead Valley, which is struggling with 7% interest rates and a lack of inventory.
Erica Wirtala, spokesperson for the Northwest Montana Association of Realtors, spoke to The Beacon about housing trends and interest rates in the Flathead Valley.
Below are excerpts from that conversation, edited for clarity.
Have pre-pandemic housing market trends returned?
Typically, this is the time of year when things really pick up as kids finish school and families start talking about moving. Real estate agents are all so busy, this is the last time they show up. We are seeing more of a seasonal recovery compared to the COVID-19 disruption. We are hearing from agents that they have to work harder to sell homes, so they are doing open houses again. This is a change from the COVID-19 era, when properties were being sold without being seen in person.
What has happened to prices since the Federal Reserve started raising interest rates?
The market is softer and calmer, and prices are lower than they were two years ago. Everyone was hoping the Fed would lower interest rates, but is disappointed that it may be delayed until September. This will have a big impact on people’s ability to buy a home. It’s hard to buy a new home with high interest rates, but I think people who are struggling to downsize or upsize are still doing so. I haven’t heard of many deals falling through.
Is your inventory expanding?
Developers are still building up inventory and projects are finishing up. Even as things start to ease, we hear from builders that it’s sometimes hard to find subcontractors. The supply chain seems to be improving, and you can even order a dishwasher. It’s not as difficult as it used to be.
