Are Montana Home Prices Finally Dropping? Experts Weigh In

BUTTE, MT - For years, Montana’s housing market has been on a relentless upward climb.

Get our free mobile app

Driven by a pandemic-era influx of remote workers, limited housing supply, and high demand in scenic areas like Bozeman and Missoula, the state became one of the most unaffordable in the United States.

Now, as interest rates hold steady and buyer enthusiasm cools, many Montanans are asking:

Are home prices finally starting to drop?

A Cooling, Not a Crash

According to the most recent housing data, Montana’s housing market is not in a free fall—but it is showing clear signs of cooling.

The statewide median home price reached $540,100 in January 2025, a 6.5% year-over-year increase. While still rising, the rate of growth has slowed considerably compared to the double-digit spikes of 2020–2022.

Homes are sitting longer on the market as well.

The average listing in Montana now stays active for 109 days, up from 89 days a year ago.

Price reductions are also becoming more common, with 17.4% of active listings seeing cuts in January.

Homes are selling for about 97.2% of their asking price, suggesting buyers now have more negotiating power than in previous years.

Perhaps most importantly, inventory is growing. Montana’s housing market has finally reached about six months of supply—a threshold economists consider “balanced” between buyers and sellers.

Local Markets Tell Different Stories

While statewide data paints a picture of softening, the dynamics vary widely between regions.

In Bozeman and the Gallatin Valley—one of Montana’s most expensive markets—the median home price was $745,000 in Q1 2025, a slight decrease from $749,500 in Q1 2024.

Local agents note that nearly 38% of homes in Bozeman have undergone price reductions, and the average home is now taking 84 days to sell.

Elsewhere in Montana, affordability continues to be an issue.

In Great Falls, real estate professionals predict prices will continue to rise by 5–8% this year due to limited inventory, despite a statewide cool-down.

Here in Butte, home prices have edged upward—but at a gentler pace than in bigger Montana cities.

According to Rocket Mortgage, the median sold home price in May 2025 was $275,133, a 3.8% increase year-over‑year.

Meanwhile, Zillow shows the average home value at about $271,271, up 0.7% over the past year, with a median sale price of $319,000 and homes typically pending in 32 days.

What the Future Holds

Looking forward, most analysts expect Montana’s home prices to remain relatively stable in 2025, with modest increases in the 3–5% range.

However, if interest rates drop in the latter half of the year—as some economists predict—that could reignite demand and push prices higher again.

A long-term forecast paints a sobering picture: by 2030, the median home price in Montana could reach $932,000. To afford that, the average Montana household would need to earn 144% more than today.

What This Means for Buyers and Sellers

For buyers, this is one of the best times in recent years to enter the Montana market—particularly for those who were priced out during the pandemic boom. There’s more inventory, less competition, and increased flexibility from sellers.

For sellers, the days of above-asking-price bidding wars may be behind us, at least for now. Pricing strategically, making modest concessions, and being patient may be key to closing a deal.

In short, Montana’s housing market hasn’t crashed—but it has shifted. And in a state known for its wide-open landscapes and equally wide housing disparities, that shift might be the first sign of a more balanced future.