By Built Different Coaching – From Dirt to Deals.
The luxury real estate market is splitting in two – and yes, it’s hitting Montana too. According to a recent CNBC article, America’s high-end housing scene is now clearly divided:
-The ultra-wealthy (think: $30M+ net worth) are still buying homes – and fast – often with cash.
– Meanwhile, the affluent-but-not-ultra are pulling back, waiting on rates or better deals.
– Moving fast
– Paying cash
– Looking for turnkey luxury They’re not flinching at 7% mortgage rates because… they’re not getting mortgages.
They’re wealth holders looking to diversify out of stocks or escape urban congestion. The ‘Comfortably Wealthy’ Are Slowing Down The buyers who need financing – even if they have good income – are stalling. They want:- Lower interest rates- More negotiating power- And more value for their dollar That’s creating longer DOM (days on market) for higher-end listings and more price cuts in the $1-2M range especially in secondary markets or non-resort areas.
2. Price Smart for the Middle-Tier Luxury: The $900k-$1.5M homes need sharper pricing and possibly incentives – like rate buy-downs or upgrade credits.
3. Watch the High-End Rental Market: Some upper-middle-tier buyers are choosing to rent while they wait for better buying conditions. This is an opportunity for furnished, high-end rentals.
The luxury real estate market is splitting in two – and yes, it’s hitting Montana too. According to a recent CNBC article, America’s high-end housing scene is now clearly divided:
-The ultra-wealthy (think: $30M+ net worth) are still buying homes – and fast – often with cash.
– Meanwhile, the affluent-but-not-ultra are pulling back, waiting on rates or better deals.
So what does that mean for us here in Big Sky Country?
Cash Buyers Are Dominating in Montana Too In markets like Bozeman, Flathead, or even Billings’ West End, we’re seeing similar trends. The buyers that are closing deals are:– Moving fast
– Paying cash
– Looking for turnkey luxury They’re not flinching at 7% mortgage rates because… they’re not getting mortgages.
They’re wealth holders looking to diversify out of stocks or escape urban congestion. The ‘Comfortably Wealthy’ Are Slowing Down The buyers who need financing – even if they have good income – are stalling. They want:- Lower interest rates- More negotiating power- And more value for their dollar That’s creating longer DOM (days on market) for higher-end listings and more price cuts in the $1-2M range especially in secondary markets or non-resort areas.
What Builders, Agents & Investors Should Do Now
1. Cater to Turnkey Expectations: These cash buyers want to close fast and move in faster. Homes should be finished, staged, and stunning – no ‘projects’ please.2. Price Smart for the Middle-Tier Luxury: The $900k-$1.5M homes need sharper pricing and possibly incentives – like rate buy-downs or upgrade credits.
3. Watch the High-End Rental Market: Some upper-middle-tier buyers are choosing to rent while they wait for better buying conditions. This is an opportunity for furnished, high-end rentals.
