TAKING THE LONG VIEW OF HOMEOWNERSHIP
Montana housing prices have increased 78% in the last five years, 20% higher than the national medianPosted: October 30, 2023 by Erin Duval
We're into the heart of the holiday trilogy now — Halloween has passed, thoughts are turning toward turkeys and family time, and department stores are somehow already decked out in tinsel!
The coming holiday season is a time when family and friends gather together, and you might be thinking about whose home will be hosting the feasts and friendship this winter. Maybe it's time to think about buying a home of your own, but you're unsure if it's a good investment right now.
Whether a first-time home buyer or someone looking to relocate or acquire an investment property, buying a home is one of the biggest decisions you’ll make in life, it’s natural to have some concerns! With news headlines calling out positive and negative market factors on a regular back-and-forth basis, it can be hard to filter through the noise and truly understand what’s at stake.
While department stores are good at gazing ahead in the calendar, it can be more difficult for the rest of us to look far enough into the future to understand the benefits that await. That’s why there’s one metric we at PureWest Montana like to point out regularly: home appreciation. While mortgage rates and short-term market price fluctuations are regularly heard numbers in the real estate world, what’s often glossed over is the benefit of long-term home ownership.
Much like the basic tenet of the stock market — that it always goes up in the long term — home values can be viewed with the same lens. Even with higher mortgage rates these days, there's no denying the benefits of long-term homeownership if you have enough data to look at.
Take this recent data from the Federal Housing Finance Agency (and shown in the graphic below), for example. Home prices in Montana have risen in the last quarter, last year, and the last five years in parabolic fashion. Montana housing prices have increased nearly four percent in the last year, but a whopping 78% in the last five years, a full 20% higher than the national median and fourth highest of the 50 states!
But what about going back even further, accounting for some longer dips and peaks in the market? The data stretches back to 1991 and shows triple-digit changes in valuation. Montana property values have soared twice as high as the national average, coming in at a 583% increase! Now, that’s a tangible financial benefit for a long-term homeowner and shows that if you're in it for the long haul, short-term variables can seem less intimidating.
Homeownership is a cornerstone of the American dream, and its benefits extend far beyond providing shelter. When viewed as a long-term investment, owning a home can lead to financial security as well as offering you and your family a stable living environment, a sense of community belonging, and the joy of having a little piece of the Montana dream. Reach out to your PureWest Montana agent anytime, and let’s talk about how homeownership can benefit you for years to come!