# The Price of Housing in Montana 2000

May 14, 2001

For The Board of Housing Department of Commerce, State of Montana

 Compiled by The Center for Applied Economic Research   Montana State University Billings   www.msubillings.edu/caer Cheryl Heath Housing Research Manager 406.657.2217   caheath@msubillings.edu

 Results 1 Figure 1: Average Price 2 Figure 2: Average Price by Existing and New 4 Figure 3:Percent Change from 1999 to 2000 10 Charts: Price of Housing, Change Over Time 13 Charts: Price of Existing and New Homes 14 Chart: Average Price in Major Cities 15 Appendix I: 20 Most Popular Prices               Percentile Prices 16

## The Price of Housing in Montana

### 2000

The task was to create a database out of existing data supplied by Robert Morgan of the Montana Board of Housing, and then run appropriate statistics to investigate the average purchasing price of housing in Montana in 2000.  The information will be used to help the Montana Board of Housing establish new Purchase Price Limits for its single-family mortgage loan programs.

The Montana Board of Housing gathered the data on single-family home sales throughout the state.  The data are essentially a convenient sample drawn from realtors and mortgage lenders around the state.

### RESULTS

 Measures of central tendency:[1] Percent increase over 1999 sample (1999 measures are in parenthesis) Mean = \$131,407 6.9% (\$122,914) Median = \$115,000 10.8% (\$103,811) Mode = \$115,000 35.3%  (\$  85,000) Total sample size = 5,661 -13.3% (6,533)

 Percentile Prices[2] Existing New 10 \$58,512 \$95,412 25 \$81,975 \$114,943 50 \$113,000 \$137,100 75 \$150,000 \$180,000 90 \$210,000 \$246,700

### Figure 1 Average Price

 Location/Condition Number Mean Median TOTAL 5,661 \$ 131,407 \$ 115,000 CITIES[3] Belgrade 65 123,039 121,597 Big Timber 63 125,055 115,000 Billings 800 126,938 107,750 Bozeman 154 210,643 159,950 Butte 139 81,066 66,000 Clancy 40 176,455 163,250 Corvallis 44 139,893 137,000 East Helena 83 88,282 89,000 Florence 64 153,026 139,900 Great Falls 406 116,202 99,900 Hamilton 86 120,997 110,250 Helena 603 124,501 114,900 Kalispell 67 146,371 138,500 Laurel 46 106,071 97,000 Lewistown 70 83,962 67,500 Livingston 140 113,804 91,875 Lolo 98 127,692 123,315 Missoula 1,005 151,678 135,000 Polson 56 169,007 138,950 Seeley Lake 53 122,960 101,000 Stevensville 111 141,717 129,900 Other Cities 1,468 107,150 85,000 COUNTIES BEAVERHEAD 29 85,019 75,000 BIG HORN 15 79,920 69,500 BLAINE 7 65,857 63,000 BROADWATER 28 103,782 83,000 CARBON 33 130,108 115,000 CASCADE 568 117,287 98,050 CHOUTEAU 6 90,083 72,750 CUSTER 35 63,811 62,000 DANIELS 2 108,000 108,000 DAWSON 33 68,809 63,800 DEER LODGE 33 59,839 50,000 FALLON 4 52,879 52,250 FERGUS 94 82,828 63,000 FLATHEAD 134 179,741 138,950 GALLATIN 237 182,524 139,900 GARFIELD 1 39,000 39,000 GLACIER 8 73,000 65,750 GOLDEN VALLEY 3 99,167 110,000 GRANITE 15 64,467 57,000 HILL 26 91,388 86,500 JEFFERSON 66 146,345 144,500 JUDITH BASIN 4 31,750 30,000 LAKE 329 190,254 141,000 LEWIS & CLARK 727 121,619 112,194 LIBERTY 2 61,000 61,000 LINCOLN 44 88,860 81,250 MADISON 7 88,686 87,500 MCCONE 1 44,900 44,900 MEAGHER 3 178,000 169,000 MINERAL 31 84,739 79,900 MISSOULA 1,299 147,524 132,000 MUSSELSHELL 14 94,725 80,875 PARK 151 116,818 92,500 PHILIPS 5 62,300 75,000 PONDEROSA 5 73,400 53,000 POWELL 31 83,472 72,500 PRAIRIE 2 32,500 32,500 RAVALLI 330 139,625 129,900 RICHLAND 41 70,695 63,500 ROOSEVELT 11 71,958 55,000 ROSEBUD 20 64,041 71,250 SANDERS 11 133,482 135,000 SILVERBOW 140 80,909 65,500 STILLWATER 53 147,994 127,900 SWEET GRASS 62 124,976 114,546 TETON 10 79,770 76,750 TOOLE 19 67,070 60,000 VALLEY 25 62,850 50,000 WHEATLAND 8 51,853 56,650 YELLOWSTONE 899 125,733 107,500 MONTH JANUARY 315 124,001 108,000 FEBRUARY 310 117,690 107,500 MARCH 419 124,752 114,500 APRIL 389 132,452 115,900 MAY 561 128,596 115,000 JUNE 653 132,111 119,000 JULY 519 134,631 115,000 AUGUST 660 137,517 122,500 SEPTEMBER 523 134,425 112,000 OCTOBER 534 132,066 109,900 NOVEMBER 425 136,768 120,000 DECEMBER 353 131,892 114,900

FIGURE 2

Average Price by Existing and New

 Location/Condition Number Mean Median TOTAL 5,661 \$  131,407 \$  115,000 CONDITION Existing 5,278 128,982 113,000 New 383 164,824 137,100 CITIES[4] BELGRADE Existing 54 124,049 120,252 New 11 118,079 124,250 Total 65 123,039 121,597 BIG TIMBER Existing 59 125,422 115,000 New 4 119,648 129,546 Total 63 125,055 115,000 BILLINGS Existing 780 124,512 106,000 New 20 221,568 170,488 Total 800 126,938 107,750 BOZEMAN Existing 134 204,279 155,950 New 20 253,278 209,235 Total 154 210,643 159,950 BUTTE Existing 137 80,169 66,000 New 2 142,535 142,535 Total 139 81,066 66,000 CLANCY Existing 40 176,455 163,250 New 0 Total 40 176,455 163,250 CORVALLIS Existing 35 139,289 140,000 New 9 142,244 130,000 Total 44 139,893 137,000 EAST HELENA Existing 79 87,723 88,400 New 4 99,325 120,750 Total 83 88,282 89,000 FLORENCE Existing 58 154,697 139,950 New 6 136,880 138,450 Total 64 153,026 139,900 GREAT FALLS Existing 395 112,672 98,500 New 11 242,979 160,000 Total 406 116,202 99,900 HAMILTON Existing 80 121,861 110,250 New 6 109,483 108,500 Total 86 120,997 110,250 HELENA Existing 543 124,394 114,999 New 60 125,471 113,810 Total 603 124,501 114,900 KALISPELL Existing 66 145,392 138,200 New 1 211,000 211,000 Total 67 146,371 138,500 LAUREL Existing 46 106,071 97,000 New 0 Total 46 106,071 97,000 LEWISTOWN Existing 68 82,211 66,750 New 2 143,500 143,500 Total 70 83,962 67,500 LIVINGSTON Existing 137 114,321 92,500 New 3 90,201 89,913 Total 140 113,804 91,875 LOLO Existing 78 128,690 123,500 New 20 123,802 122,531 Total 98 127,692 123,315 MISSOULA Existing 902 148,251 132,000 New 103 181,691 169,500 Total 1,005 151,678 135,000 POLSON Existing 55 167,262 136,000 New 1 265,000 265,000 Total 56 169,007 138,950 SEELEY LAKE Existing 51 123,413 101,000 New 2 111,400 111,400 Total 53 122,960 101,000 STEVENSVILLE Existing 96 141,631 127,000 New 15 142,269 131,950 Total 111 141,717 129,900 COUNTIES[5] BEAVERHEAD Existing 26 87,538 75,000 New 3 63,181 50,000 Total 29 85,019 75,000 BIG HORN Existing 15 79,920 69,500 Total 15 79,920 69,500 BLAINE Existing 7 65,857 63,000 Total 7 65,857 63,000 BROADWATER Existing 21 89,895 81,000 New 7 145,443 129,000 Total 28 103,782 83,000 CARBON Existing 32 125,267 112,500 New 1 285,000 285,000 Total 33 130,108 115,000 CASCADE Existing 552 112,360 97,825 New 16 287,278 179,950 Total 568 117,287 98,050 CHOUTEAU Existing 6 90,083 72,750 Total 6 90,083 72,750 CUSTER Existing 35 63,811 62,000 Total 35 63,811 62,000 DANIELS Existing 2 108,000 108,000 Total 2 108,000 108,000 DAWSON Existing 33 68,809 63,800 Total 33 68,809 63,800 DEER LODGE Existing 33 59,839 50,000 Total 33 59,839 50,000 FALLON Existing 4 52,879 52,250 Total 4 52,879 52,250 FERGUS Existing 91 80,943 62,500 New 3 140,000 137,000 Total 94 82,828 63,000 FLATHEAD Existing 128 180,052 138,950 New 6 173,117 141,500 Total 134 179,741 138,950 GALLATIN Existing 206 179,096 139,900 New 31 205,304 136,650 Total 237 182,524 139,900 GARFIELD Existing 1 39,000 39,000 Total 1 39,000 39,000 GLACIER Existing 8 73,000 65,750 Total 8 73,000 65,750 GOLDEN VALLEY Existing 3 99,167 110,000 Total 3 99,167 110,000 GRANITE Existing 15 64,467 57,000 Total 15 64,467 57,000 HILL Existing 26 91,388 86,500 Total 26 91,388 86,500 JEFFERSON Existing 64 148,193 150,500 New 2 87,228 87,228 Total 66 146,345 144,500 JUDITH BASIN Existing 4 31,750 30,000 Total 4 31,750 30,000 LAKE Existing 319 191,591 141,900 New 10 147,600 108,500 Total 329 190,254 141,000 LEWIS & CLARK Existing 653 120,985 111,900 New 74 127,208 125,200 Total 727 121,619 112,194 LIBERTY Existing 2 61,000 61,000 Total 2 61,000 61,000 LINCOLN Existing 43 87,729 80,000 New 1 137,500 137,500 Total 44 88,860 81,250 MADISON Existing 7 88,686 87,500 Total 7 88,686 87,500 MCCONE Existing 1 44,900 44,900 Total 1 44,900 44,900 MEAGHER Existing 1 130,000 130,000 New 2 202,000 202,000 Total 3 178,000 169,000 MINERAL Existing 29 83,617 79,900 New 2 101,000 101,000 Total 31 84,739 79,900 MISSOULA Existing 1,150 144,936 129,900 New 149 167,503 157,100 Total 1,299 147,524 132,000 MUSSELSHELL Existing 14 94,725 80,875 Total 14 94,725 80,875 PARK Existing 148 117,358 92,500 New 3 90,201 89,913 Total 151 116,818 92,500 PHILIPS Existing 5 62,300 75,000 Total 5 62,300 75,000 PONDEROSA Existing 5 73,400 53,000 Total 5 73,400 53,000 POWELL Existing 30 82,921 72,141 New 1 100,000 100,000 Total 31 83,472 72,500 PRAIRIE Existing 2 32,500 32,500 Total 2 32,500 32,500 RAVALLI Existing 293 139,481 128,900 New 37 140,768 130,000 Total 330 139,625 129,900 RICHLAND Existing 39 68,044 60,000 New 2 122,400 122,400 Total 41 70,695 63,500 ROOSEVELT Existing 11 71,958 55,000 Total 11 71,958 55,000 ROSEBUD Existing 20 64,041 71,250 Total 20 64,041 71,250 SANDERS Existing 10 137,030 135,000 New 1 98,000 98,000 Total 11 133,482 135,000 SILVERBOW Existing 138 80,015 65,500 New 2 142,535 142,535 Total 140 80,909 65,500 STILLWATER Existing 51 137,054 126,000 New 2 426,963 426,963 Total 53 147,994 127,900 SWEET GRASS Existing 58 125,343 114,500 New 4 119,648 129,546 Total 62 124,976 114,546 TETON Existing 10 79,770 76,750 Total 10 79,770 76,750 TOOLE Existing 19 67,070 60,000 Total 19 67,070 60,000 VALLEY Existing 24 60,885 50,000 New 1 110,000 110,000 Total 25 62,850 50,000 WHEATLAND Existing 8 51,853 56,650 Total 8 51,853 56,650 YELLOWSTONE Existing 876 123,554 106,000 New 23 208,728 151,000 Total 899 125,733 107,500

FIGURE 3

Percent Change from 1999 to 2000[6]

 Location/Condition Number Mean Median TOTAL -13.35% 6.91% 10.78% CONDITION Existing -14.69% 6.90% 11.55% New 10.69% 0.94% -3.21% CITIES BELGRADE 140.74% 6.51% 9.43% BIG TIMBER 200.00% 12.85% 17.35% BILLINGS -1.23% -1.22% 0.70% BOZEMAN 43.93% 32.32% 20.26% BUTTE -59.59% 6.89% 1.54% CLANCY 66.67% 14.77% 6.37% CORVALLIS -12.00% -3.43% -1.58% EAST HELENA 159.38% -30.23% 3.49% FLORENCE -37.86% -7.31% -3.52% GREAT FALLS 9.73% 10.03% 10.39% HAMILTON 3.61% 1.01% 0.32% HELENA 177.88% 2.60% 2.68% KALISPELL -57.86% 19.92% 35.25% LAUREL -24.59% 2.73% 14.12% LEWISTOWN 169.23% 1.21% -9.09% LIVINGSTON 204.35% -2.92% -2.78% LOLO 44.12% -2.54% 3.19% MISSOULA 25.63% 0.57% 2.86% POLSON -35.63% 18.10% 15.79% SEELEY LAKE 112.00% 32.57% 13.61% STEVENSVILLE -23.45% -12.25% 0.74% COUNTIES BEAVERHEAD -6.45% -1.39% -10.18% BIG HORN 114.29% -14.71% -8.55% BLAINE 133.33% 39.13% 26.00% BROADWATER 115.38% -6.71% 4.40% CARBON -15.38% 17.40% 21.05% CASCADE -57.74% 17.85% 10.17% CHOUTEAU -33.33% -1.01% -19.61% CUSTER -43.55% -5.80% -4.62% DANIELS 100.00% 140.00% 140.00% DAWSON 10.00% 15.97% 1.75% DEER LODGE -21.43% -23.27% -30.56% FALLON -55.56% -1.97% -3.24% FERGUS 64.91% -13.91% -21.25% FLATHEAD -50.74% 43.03% 28.66% GALLATIN 23.44% 6.37% 2.12% GARFIELD 0.00% -46.58% -46.58% GLACIER 14.29% 1.56% -4.01% GOLDEN VALLEY 200.00% -30.60% -23.02% GRANITE 7.14% 2.15% 7.55% HILL 18.18% 1.68% 11.25% JEFFERSON 24.53% 1.55% 7.04% JUDITH BASIN 100.00% -54.64% -57.14% LAKE 109.55% 21.88% 10.24% LEWIS & CLARK 157.80% -28.01% 1.99% LIBERTY 100.00% -35.79% -35.79% LINCOLN -18.52% 0.48% 2.85% MADISON -65.00% -34.80% -14.32% MCCONE -50.00% -16.07% -16.07% MEAGHER 0.00% 69.79% 98.82% MINERAL -47.46% -25.49% -18.39% MISSOULA 31.88% -0.80% 1.54% MUSSELSHELL 40.00% 1.64% -13.18% PARK 11.03% 0.74% -4.87% PHILIPS -61.54% -5.99% 3.45% PONDEROSA -37.50% 4.50% -14.10% POWELL 72.22% 46.37% 35.51% PRAIRIE -33.33% -45.22% -50.00% RAVALLI -65.34% -4.17% 3.92% RICHLAND -57.73% 14.06% 9.48% ROOSEVELT -38.89% 54.66% 37.50% ROSEBUD 233.33% 8.70% 14.46% SANDERS 0.00% 36.18% 42.86% SILVERBOW -63.16% -0.25% -2.96% STILLWATER -15.87% 29.63% 27.26% SWEET GRASS 129.63% 4.50% 16.29% TETON 25.00% -17.67% -14.67% TOOLE 5.56% 1.18% -5.33% VALLEY 19.05% -5.12% -19.35% WHEATLAND 300.00% -9.82% -1.48% YELLOWSTONE -6.94% 0.55% 3.37% MONTH JANUARY -14.63% 1.47% 7.46% FEBRUARY -15.76% 5.08% 16.85% MARCH -28.74% 3.95% 9.11% APRIL -31.87% 1.10% 5.46% MAY -19.16% 5.43% 9.63% JUNE -14.75% 3.02% 6.25% JULY -29.67% 10.64% 13.02% AUGUST 6.80% 14.43% 22.84% SEPTEMBER -8.25% 9.56% 9.54% OCTOBER 3.69% 6.18% 9.90% NOVEMBER 4.17% 11.84% 15.66% DECEMBER 6.65% 7.74% 13.76%

New and Existing Housing

Existing housing is defined as any housing that has had a previous occupant. For 2000, the average price of new housing was \$164,824 and the average price of existing housing was \$128,982. The average difference was \$35,842.

Appendix  I

## 20 Most Popular Prices

 Price Number Sold 1 115,000 76 2 125,000 66 3 85,000 58 4 75,000 57 5 135,000 56 6 110,000 53 7 120,000 52 8 105,000 49 9 65,000 47 10 95,000 45 11 90,000 44 12 130,000 43 13 140,000 42 14 100,000 41 155,000 41 16 145,000 38 160,000 38 18 165,000 36 19 89,900 34 20 185,000 32

## Percentile Prices

 Percentiles Total Existing New 0.5 25,000 25,000 23,944 1.0 29,000 29,000 49,200 1.5 32,500 32,093 57,101 2.0 36,000 35,551 70,000 2.5 38,000 37,500 73,240 3.0 40,000 40,000 74,760 3.5 42,000 41,000 75,660 4.0 43,000 42,000 80,296 4.5 45,000 44,356 82,758 5.0 46,500 45,000 83,737 5.5 48,000 47,052 85,072 6.0 50,000 48,974 85,816 6.5 51,000 50,000 87,336 7.0 52,000 51,000 88,755 7.5 53,760 52,416 89,814 8.0 55,000 54,000 91,540 8.5 55,708 55,000 91,984 9.0 57,500 55,511 92,280 9.5 58,900 57,500 93,912 10.0 60,000 58,512 95,412 15.0 69,900 68,000 105,303 20.0 76,900 75,000 110,000 25.0 84,000 81,975 114,943 30.0 89,500 87,500 119,200 35.0 95,500 93,500 124,470 40.0 102,000 99,900 129,900 45.0 109,041 106,000 134,605 50.0 115,000 113,000 137,100 55.0 120,000 119,000 146,000 60.0 127,000 125,000 153,000 65.0 134,900 131,756 161,000 70.0 142,000 140,000 168,720 75.0 153,950 150,000 180,000 80.0 165,000 163,000 189,920 85.0 182,000 179,500 216,740 90.0 214,000 210,000 246,700 90.5 218,762 214,774 251,992 91.0 222,326 220,000 254,290 91.5 225,000 225,000 263,400 92.0 230,075 227,500 266,613 92.5 235,000 232,113 276,345 93.0 240,000 237,000 285,313 93.5 248,967 245,000 289,260 94.0 255,000 251,260 299,820 94.5 260,000 259,103 304,676 95.0 269,860 265,000 318,400 95.5 280,000 275,000 337,773 96.0 287,318 285,000 357,386 96.5 300,000 299,212 369,560 97.0 319,126 311,008 385,822 97.5 334,175 328,025 424,740 98.0 361,217 357,893 432,525 98.5 397,710 390,000 540,600 99.0 455,000 450,000 702,897 99.5 583,450 550,000 1,008,000

[1]  The CPI-U (national CPI for all urban consumers) increased 3.4% in 2000; the national CPI-U for housing increased 4.3%.

A variable like housing price can create a distribution that is highly skewed.  With such a distribution, the central tendency can have several values depending upon what needs to be emphasized:

The mean:  The average price.  This would be a good measure to use to promote the area’s economic viability.

The median:  Half cost more, half cost less.  This is a good measure if you want to know what your money will buy.

The mode:  The most frequently occurring price.  The mode has risen significantly from 1999.  It is a coincidence that the median and the mode are identical.  The increase in the mode reflects the trend of purchasing more expensive housing.

[2]   Additional percentiles are listed in Appendix I.o

[3] Locations with 40 or more sales sampled.

[4] Locations with 40 or more sales sampled.

[5] New housing is listed only in counties with reported new housing.

[6] Numbers represent percent change from 1999 to 2000.  For example, the sample size is 13.35% smaller, the average price of houses increased 6.91%, and the median price increased 10.78%.