MATT GOURAS Associated Press Writer HELENA
A new survey of housing prices in Montana shows the booming market has hit a speed bump, although the state is still faring better than many areas of the country. The survey, released Thursday by the Office of Federal Housing Enterprise Oversight, draws from home sale data reported by the big mortgagefinance companies Fannie Mae and Freddie Mac. It shows the housing market slowdown is showing up in Montana. “We have definitely seen a deceleration in Montana’s house price growth,” said Paul Polzin, a University of Montana economist. Overall, housing prices increased 2.5 percent in Montana during the first quarter of 2007, which ended March 31. That’s down from a 3.6 percent increase in the same quarter last year. The slowdown was most noticeable in Missoula, where housing prices remained flat during the first quarter. Billings saw price growth of less than 1 percent. The Great Falls market prices grew 2.6 percent. Data was not available for other individual Montana cities. Montana has not been as quick as other areas to see a slowdown in pricing growth. Over the last 12 months, Montana was among the leaders in the appreciation of homes at 11. 7 percent. Polzin said Montana did not grow as fast as other areas, and is unlikely to see actual decreases, or depreciation, in home values. Still, the large increases are probably behind the state. “I think you will be seeing more deceleration in Montana. We can’t hold out forever,” he said. Across the nation, average home prices increased just 0.5 percent during the first three months of the year. On the Net: Office of Federal Housing Enterprise Oversight: http://www.ofheo.gov Fannie Mae: http://www.fanniemae. com Freddie Mac: http://www.freddiemac.com
