In 2022 we saw the continuation of the very high demand for Montana land that exploded in 2021, and that has depleted supply of available properties that has continued into 2023.
2021 was a record-breaking year for sales volume in the Montana land market. High demand spilled over from 2020 when COVID-19 initially drove buyers to the Montana land market seeking refuge from the pandemic. Then additional factors such as political and social unrest in other states, massive wildfires in other states, the release of the hit TV show Yellowstone and a sudden ability for workers to work remotely added to dramatic increase in demand. Many buyers reported that these events were "tipping points," causing them to act on what they had been dreaming of for some time; moving to and/or buying land in Montana.
The exceptionally high demand led to an extraordinary volume of sales, and increased sale prices. The Montana land market had a large backlog of inventory going into 2021. Historically, many sellers have had unrealistic expectations of value, and as a result, many properties sat on the market for years. The extreme high demand in 2021 and 2022 cleared out much of that inventory, and as a result the median days on market decreased dramatically. Going into 2023, the available inventory of land for sale in Montana is at an all time low.
For over twenty years, the annual For Lands Sake presentation has been the premier annual Montana land values event, where the state's top land appraisers share their market data for the benefit of rural real estate industry professionals. Started by Clark Wheeler of Norman C Wheeler & Associates, this year's event also included presentations Andrew Rahn of Montana Land Source, and Wade McAlpine and Christine Murphy from Northwest Farm Credit Services, Tom Kingsbury from Part & Parcel, and Mike McDonnell from Norman C. Wheeler & Associates. The meeting is always highly attended, as it is the best opportunity of the year to learn in depth about rural Montana land values and trends.
Here is the video of Andrew Rahn's presentation:
Below is a PDF of Andrew Rahn's presentation from Montana Land Source data:
The presentation was part of the 3nd Annual Winter Real Estate Roundup, which is a collaboration between Montana rural land appraisers and land brokers to provide a high-quality education and networking seminar for Montana's top rural real estate industry professionals. The three-day event was held March 7 - 9, 2023 in Bozeman, and was a resounding success. The event was jointly organized by the Montana Chapter of the American Society of Farm Managers and Rural Appraisers (ASFMRA) and the Montana Farm & Ranch Brokers Association.