State Real Estate Market Outlook
Realty Market Outlook Montana State Profile - Spring 2006
Housing market conditions remained solid
In-migration supported a record level of housing permits in 2005. Year-over-year home price gains in the state accelerated to 14.6 percent in fourth quarter 2005, outpacing the national rate. However, rising interest rates may weigh on housing markets going forward.
Innovative mortgages and investors also may be influencing housing demand. Interest-only and negative amortization loans accounted for 31 percent of non-prime mortgage originations in Montana during the first 11 months of 2005. During the same period, investors and second-home purchasers accounted for 23 percent of Montana Alt-A mortgage originations.
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