Home Sales

A house with a sale pending sign is viewed, Monday, Jan. 23, 2023, in Brooklyn Park, Minn. Idaho and Montana have seen the highest home price spikes the past five years, according to a new report. They also rank last in the U.S. for affordable housing across multiple income levels, according to another analysis.

Home prices in Montana have jumped more than 79% — the second highest housing spike in the U.S., according to new report.

Real estate firm Boulder Home Source analyzed Zillow price data for the past five years and found the largest price spikes in Idaho (91.9%), Montana, Georgia (76.5%) and New Mexico (76.2%).

“Montana has seen the second largest increase in house prices out of all fifty states. The average house price in Montana is now $430,528 after increasing 79.4 % in the past five years,” according to the report from the Colorado-based residential real estate firm.

Idaho home prices have jumped to $429,606 on average, according to the report.

Mountain West and Southern states saw significant growth during and since the coronavirus pandemic which saw unprecedented home sales and price spikes. Tennessee, Arizona, Florida, North Carolina, Maine and Utah round out the top ten for price jumps for the past five years.

Lack of affordable and entry level housing have been a challenge nationally and in Montana with prices jumping significantly. Forty-year highs with inflation have also prompted multiple interest rate hikes and Federal Reserve Chairman Jerome Powell said Wednesday that more increase will be coming.

That will raise interest rates on mortgages and other financing with the costs of rents up 8.6% from a year ago, according to the Consumer Price Index.

The highest average home prices are in Hawaii ($826,348), California ($716,909), New York ($629,516) and Massachusetts ($545,865), according to Boulder Home Source.

The only states with home prices averaging under $200,000 include West Virginia ($144,330), Mississippi ($163,052), Arkansas ($177,226), Oklahoma ($183,733), Louisiana ($186,795), Kentucky ($188,241) and Iowa ($193,341)

The lowest price growth for homes over the last five years was found in North Dakota (22.7%), Louisiana (23.6%), Alaska (26.7%) and Maryland (33.9%).

The real estate industry is an important economic driver in Montana and other states. The sector totaled $11.3 billion in Montana in 2021 and accounted for 19% of the state’s economy, according to the National Association of Realtors.

Montana also ranks as the least affordable state in the U.S. for housing — along with Idaho, according to an NAR analysis. Montana’s affordable housing crunch is even tougher than California and Hawaii when it comes to affordable housing across various income levels, according to the NAR.

Originally published on belgrade-news.com, part of the BLOX Digital Content Exchange.