By Taylor Owens CONTENT MARKETING DIRECTOR
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For many, owning a home in Montana starts as an idea—more space, closer access to the outdoors, and a different pace of life. In places like Big Sky, Bozeman, Whitefish and across southwest Montana, that idea continues to draw interest from out-of-state buyers.
While the market has shifted in recent years, demand hasn’t disappeared—it’s simply evolved.
“We’re still seeing a very steady demand from out-of-state buyers to purchase properties in Montana,” Tim Gaertner, vice president of mortgage lending at Whitefish Credit Union, says.
Montana’s real estate surge during the pandemic brought a wave of new buyers into the market, many drawn by lifestyle changes and historically low interest rates. But that pace wasn’t sustainable.
“During COVID and immediately after COVID, there was a frenzy to buy Montana properties for out-of-state buyers,” Gaertner says.
As interest rates climbed in 2023, activity slowed and inventory tightened. Many homeowners chose to hold onto properties secured with ultra-low mortgage rates, limiting options for new buyers.
“So people have been in a situation where they have a lot of equity in their house, but they have a low interest rate and they don’t want to touch it,” he says.
That dynamic created a bottleneck in the market—but it’s beginning to ease.
“We’re having the busiest year we’ve had since that time, since the COVID boom,” Gaertner says.
With more buyers and sellers re-entering the market, conditions are starting to feel more active again, particularly in high-demand areas across western Montana.
One major shift for out-of-state buyers is pricing. Montana is no longer the relative bargain it once was.
“If they’re not coming from a high-value area of the country, our median prices…are well ahead of the national average,” says Gaertner. “So it just makes it that much harder.”
For buyers relocating from higher-cost markets, the transition may still feel manageable. For others, it can require a reset in expectations—and careful financial planning before entering the market.
For out-of-state buyers, one of the most important decisions happens before closing: choosing the right lender.
“We do a lot of what we call rescue loans,” Gaertner says.
In many cases, buyers begin the process with large, national lenders, only to encounter issues late in the transaction—often when it’s hardest to recover.
“They get all the way to the appraisal point… and all of a sudden there’s something in the appraisal that doesn’t meet their cookie cutter box and they can’t do the loan,” he explains.
That’s a common challenge in Montana, where properties don’t always fit standardized lending guidelines.
Working with a local institution like Whitefish Credit Union can help avoid those surprises. Because the credit union keeps its loans in-house, it can take a more flexible approach to both borrowers and properties.
“We portfolio everything, lend our own money and keep our loans,” Gaertner says. “It allows us a ton of flexibility on different situations.”
That flexibility is especially important in Montana, where buyers are often looking for something beyond a typical suburban home. Larger parcels, rural properties, and unique builds are part of the appeal—but they can complicate financing through traditional channels.
Local lenders who understand the landscape are often better equipped to navigate those complexities and keep transactions on track.
Beyond financing, one of the biggest factors impacting buyers today is insurance—particularly in more rural or forested areas.
“Checking early on in that process, is that property that you want to buy—one, is it insurable at all? And what will it cost?” Gaertner says.
In recent years, costs have risen significantly, adding another layer of consideration for buyers evaluating affordability.
“We’ve seen premiums…triple, quadruple…in the last two or three years,” he adds.
For some properties, especially those farther from town, availability and affordability of coverage can ultimately shape purchasing decisions as much as price or location.
Another factor that can influence overall cost is how a loan is structured. Unlike many lenders that sell mortgages on the secondary market, Whitefish Credit Union operates differently.
“We don’t charge lender origination fees.” Gaertner says. “Our model is unique for Montana lenders,” Gaertner says.
That approach can reduce upfront costs for borrowers, particularly on higher-value properties where fees can add up quickly, and for first-time homebuyers, whose limited funds can be directed toward immediate equity instead of closing costs.
As Montana’s market continues to normalize, out-of-state buyers are finding opportunity—but also a need for deeper due diligence. Understanding local pricing, working with lenders familiar with the region, and evaluating long-term costs like insurance are all key parts of the process.
With the right preparation and guidance, the path to owning property in Big Sky Country is still very much within reach—it just looks a little different than it did a few years ago.
Whether you’re buying or selling in the Montana market, learn more from local experts at whitefishcu.com
