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%.