2023 Market OutlookFebruary 23, 2023
In this month’s blog we’ve provided a Market Outlook for 2023 prepared by Broker, Keith Handlos.
In 2023 we are anticipating a different market than we saw in 2022 but with some of the same influences. The last couple of years have shown a shortage of inventory on the market, and we see that trend continuing as we move into 2023. One of the factors creating an inventory shortage in the Farm/Ranch/Recreational market is the fact that many new owners have come to the area and those properties are in very strong hands. This cycle ebbs and flows like the rest of the markets but it will take some time before those properties hit the market in the future. Driving through Beaverhead County, one can’t help but notice all the improvements happening. When new owners come in, they generally come with intentions of making their property more desirable whether it be conservation driven or improving recreational components. These improvements can be enhancing waterways, repairing eroding ditch banks for irrigation, adding more efficient irrigation practices, building ponds, planting trees, adding food plots or new agricultural crops, the list is almost endless. The money that goes into these properties only makes them more desirable when they do come back to the market in the future.
2023 seems to be strong in snowfall so far and we can hope that that trend continues. The last few years have shown drought conditions which affect both agriculture and recreation. Having an above average precipitation year always helps improve real estate market conditions as property looks healthier, streams and rivers run stronger, and the overall atmosphere is much more positive. This, in turn, brings more visitors,who stay longer, to enjoy all the things Montana has to offer.
Another factor in our current market are interest rates. When a quality property hits the market with a fair price, it usually sells quickly showing us there are still plenty of buyers waiting in the wings. There are some cash buyers and still a few 1031 buyers fueling that trend, however, high interest rates have sidelined a hefty number of buyers. I feel the housing market has been most heavily affected by the high rates. The interest rates of 2021 had many buyers looking to take advantage of very inexpensive money, and I believe when the current rates correct, those folks will get back in the game.
Having an adequate amount of water and seeing those interest rates fall would go a long way to seeing this market hit stride in 2023.
18 Land Company is a Montana land brokerage company specializing in connecting sellers and buyers. We now are offering our services in assisting you with home sales and purchase.
If you have questions or would like to talk to one of us about how to start a successful Montana ranching or farming operation, or you are looking for a home or recreational property, we welcome you to contact us at 406.988.0055 or firstname.lastname@example.org or email@example.com