Welcome to our February 2025 Market Update! As the real estate market evolves, staying informed about the latest trends and opportunities is essential. To provide valuable insights, we spoke with local experts Crystal Eckerson and Mary Ahmann Hibbard about interest rates, creative financing solutions, market strategies, and more. To give you a complete picture, we’ve also included key real estate market stats.
Whether you’re a buyer or a seller, their advice offers practical and thoughtful guidance on navigating Helena’s dynamic housing market. Read on for insights, trends, and strategies to help you make informed decisions!
Q&A with Crystal Eckerson, Mortgage Lender at Evergreen Home Loans
Q: What are the current interest rate trends, and how are they affecting buyers in Helena?
A: Over the past six months, we’ve seen conventional loan rate trends in the 6-7.5% range. For government loans, interest rates have been in the low to mid-sixes. Since the election, economic factors indicate that rates are unlikely to drop further, and buyers are starting to adjust to this reality.
Historically, rates in the 6-7% range are actually where we’ve seen the majority of rates over time, even though we were fortunate to experience a decade-long trend of lower interest rates.
Q: Are there any creative financing solutions that buyers should be aware of?
A: Creative financing solutions for buyers really depend on the knowledge and in-depth conversations they have with a lender. Buyers can set themselves apart in the creative financing world by working with a local lender who understands mortgage products and the available options to get approved for specific loan types. Even simple factors, like how income is calculated, can affect the type of product a buyer qualifies for. A local lender typically has much more expertise than a national lender.
In addition, Evergreen Home Loans offers product options through our CashUp and StepUp loan programs. Simply put, our CashUp Program allows buyers to purchase a home using Evergreen’s cash, enabling them to become cash buyers themselves. The StepUp loan product is designed for buyers who need to sell their current house but are unable to qualify without that sale in order to close.
Q: What advice do you have for buyers trying to get pre-approved in this market?
A: My advice for buyers looking to get pre-approved in this market is to be as detailed as possible when working with their local lender. It’s important to provide thorough documentation for income qualification to ensure the full picture is clear. Additionally, it’s a good idea to understand your credit scores and review your credit report to prevent any potential issues down the road.
Lastly, it’s crucial to understand that once you are pre-approved, you should avoid making any changes that could affect your application. This includes changes in how you’re paid, such as switching jobs or altering your pay structure. It’s equally important to avoid changes to your credit, such as opening or closing credit lines, or allowing any payments to become overdue.
Q: What’s the one thing buyers should keep in mind when navigating the lending process in today’s environment?
A: In today’s lending environment, it’s crucial not to be lured by online lenders or the promise of the lowest possible rate—don’t go chasing rates. It’s far more important to prioritize communication, trust, and getting referrals from people you know when selecting a lender. Not all lenders are created equal.
Even within our local lending community, some lenders have more expertise and access to a wider range of products than others. It’s important to ask questions and seek advice from your circle of influence—whether it’s friends, family, or your local real estate professional. Ultimately, choosing relationships and communication over chasing the lowest rate will serve you better in the long run.
Q: What is a buydown?
A: “Buydown” is a big buzzword in the market right now, especially with where rates have settled. Essentially, a buydown allows you to secure a lower interest rate by providing additional upfront funds at closing. In other words, if you want a lower interest rate, you would need to bring more money to closing in addition to the standard closing costs.
There are two types of buydowns: temporary and permanent. Temporary buydowns are typically funded by the seller and provide a lower interest rate for 1, 2, or 3 years after closing, after which the rate reverts to the standard rate. A permanent buydown, on the other hand, offers a lower interest rate for the life of the loan. This type of buydown can be funded by either the buyer or the seller and can be a good affordability solution, allowing you to secure a lower interest rate for the life of the loan and potentially increase your purchase price.
Q: What programs or options are available for first-time homebuyers right now?
A: Options for first-time homebuyers remain the same—there’s nothing new specifically. However, we have great programs available, including the Montana Board of Housing, mortgage credit certificates, and NeighborWorks, for borrowers who qualify.
Please keep in mind that most first-time homebuyer products offering subsidized interest rates or down payment assistance typically have income qualifications. This means the total household income must be below a certain threshold to qualify. Additionally, for buyers utilizing conventional financing, if their income is below the area median income for their county (which is about $90,000 in Lewis & Clark County), they may qualify for a lower interest rate compared to someone who is not a first-time homebuyer.
Q&A with Mary Ahmann Hibbard, Broker/Owner of Helena Home Team
Q: How would you describe the overall health of the real estate market in Helena right now?
A: I would describe the overall health of the Helena real estate market as consistently solid. We do see a slight downturn when interest rates rise, but as people become more accustomed to the current rates, they tend to feel more comfortable purchasing in this market.
We still have people moving in from out of town, though that activity has leveled off over the past year or so. Naturally, during the winter months, we see a bit of a slowdown in the market, likely because many people prefer not to move during that time of year.
Q: How is the real estate market in Helena?
A: We have a very solid real estate market. I believe our community has strong anchors that help maintain a stable economic state, including major employers such as the hospital, Boeing, Northrop Grumman, Carroll College, and others. We’re going to be keeping a close eye on the market and economy after the federal reductions in force (DOGE cuts).
Q: What makes this market different from what we’ve seen in the past few years?
A: The market at this moment feels like it is starting to correct itself. Over the last few years, we’ve seen significant activity, with many people moving into the area and a surge in demand driving up home prices. Right now, it feels like there’s a bit of settling—there isn’t as much inventory, but we’re also seeing less activity from buyers in the market. This is a moment where things are beginning to regulate, which is exactly what the market needs right now.
Q: How do you see current interest rates impacting both buyers and sellers?
A: I think with interest rates where they are, home prices likely won’t escalate as much as they have in the past. When interest rates are higher, there are fewer buyers to purchase homes. It’s important for sellers to be realistic—where we once saw multiple buyers for a single home, there may now be only one, and it might take a little longer for the home to sell. Pricing your property correctly is crucial.
For buyers, it’s equally important to explore all available options before making a decision.
Q: What strategies are you recommending to help your clients succeed in today’s market?
A: Strategies for Sellers: Price your home correctly and ensure it’s ready to go on the market. This includes tasks like decluttering and staging. We also closely monitor market trends to make decisions that are in your best interest.
Strategies for Buyers: I focus on providing my clients with the best tools they need for a successful purchase. For example, working with local lenders to ensure you’re well-qualified and informed about the steps of the home-buying process. It’s important to have a dedicated team—including your real estate agent, lender, and others—who truly care and work together to help you reach the finish line and find the home that’s right for you.
Q: How do you choose the “right” real estate agent?
A: When looking for the right agent, it’s essential to find someone who is willing to work with you and understand your needs. Buying or selling a house is a highly personal decision, and having the right REALTOR® by your side is one of the most important choices you can make. Your REALTOR® should not only guide you through the process but also act as your advocate, counselor, and even a friend, because, at the end of the day, it’s one of the biggest decisions you’ll ever make.
Q: Why should you work with Helena Home Team?
A: When you work with Helena Home Team, you’re not just partnering with someone who cares about you—we also deeply care about the Helena community and the unique fabric that makes this place so incredible. We hope you choose to work with us so we can continue giving back to the people who make Helena the amazing place it is.
The Real Estate Market Stats
The Lewis & Clark County real estate market closed out December 2024 with notable shifts compared to the same period in 2023, reflecting both opportunities and challenges for buyers and sellers:
- Average Sale Price Sees Strong Growth 💰
The average sale price for single-family homes in February 2025 climbed to $555,410, reflecting a 12.48% increase from $493,791 in February 2024. This jump underscores the steady demand for homes and rising property values in Lewis & Clark County. Sellers are still in a great position to capitalize on these gains, while buyers should be prepared for competitive pricing. - Homes Taking a Bit Longer to Sell 🕒
The average days on market increased slightly from 84 days in February 2024 to 89 days in February 2025—a 5.95% rise. While not a major shift, this suggests that buyers may have a little more breathing room when making decisions. However, well-priced homes are still moving quickly, making strategic pricing essential for sellers. - More Homes Hitting the Market 🏠
Inventory saw a huge increase, with 212 homes for sale in February 2025, compared to just 134 in February 2024—a 58.21% jump. More homes on the market mean more choices for buyers, potentially shifting the market toward a better balance.
These stats paint a picture of a market in transition. While rising prices remain a win for sellers, the increased inventory and longer days on market suggest the landscape is becoming more favorable for buyers. Whether you’re planning to buy, sell, or simply stay informed, these trends are shaping the Helena real estate market as we head further into 2025.
At Helena Home Team, we’re passionate about helping our clients find success in their real estate journeys while supporting the incredible Helena community. Whether you’re just starting your search, ready to list your property, or exploring creative financing options, we’re here to provide guidance, expertise, and care every step of the way. Let’s work together to make 2025 a year of achieving your real estate goals!
