February Market Update: A Region in Rebalance

The overarching story this February is one of rebalancing. Inventory is climbing across virtually every market we track, with some counties seeing gains of more than 50% year-over-year. That growing supply is giving buyers more options and putting modest pressure on prices in several areas, while markets with tighter inventory continue to hold firm.

Here's a county-by-county look at the numbers through March 5, 2026:

Flathead County

Flathead had 87 total sales in February, down 10.3% from last year, but the pricing story tells a different tale. The average sale price jumped to $1,106,474, a 43.9% increase, while the median sale price rose a more measured 6.2% to $658,000. The average price per square foot came in at $447, up 15.2%. Much of that average price surge is being driven by a strong luxury segment: 21 homes sold above $1 million, up 23.5% year-over-year. Active inventory has grown significantly, with 830 homes currently for sale, up 38.8%, giving buyers more to choose from heading into spring.

Lake County

Lake County was one of the standout performers this month, with gains across every metric. Sales rose 33.3% to 16 transactions, the average sale price climbed 31.7% to $941,279, and the median sale price increased 29% to $642,000. Price per square foot was up 26.7% to $384. Five luxury sales closed, a 66.7% jump, and inventory grew 26.9% to 184 homes. Across the board, this was a notably strong February for Lake County.

Missoula County

Missoula saw a significant uptick in activity, with 79 sales, up 38.6% from last February. However, rising supply appears to be putting downward pressure on values. The average sale price dipped 2.3% to $630,380, the median fell 5% to $546,000, and price per square foot declined 7.4% to $313. Inventory surged 54% to 445 homes, one of the largest supply increases in the region. Luxury activity also pulled back, with 5 sales above $1 million compared to the prior year's pace.

Ravalli County

Ravalli is holding steady. Sales rose 8.8% to 37 transactions, and pricing remained positive across the board. The average sale price edged up 2.4% to $637,375, the median increased 2.3% to $532,000, and price per square foot was up 1.5% to $330. Four luxury homes sold, up 33.3%. The headline number to watch is inventory: 305 homes are currently for sale, up 69.4% year-over-year, one of the sharpest supply buildups in the region.

Lewis & Clark County

Lewis & Clark posted a modest sales increase of 8.3%, with 52 closings in February. Prices moved meaningfully lower, with the average sale price falling 12% to $494,226 and the median declining 12.9% to $437,000, even as price per square foot held essentially flat at $259, up 1.2%. Inventory rose 49.7% to 259 homes. For buyers, this county is offering some of the more accessible price points in the region right now.

Lincoln County

Lincoln County recorded 15 sales in February, up 25% from last year. The median sale price rose 3.1% to $435,000, though the average sale price dipped 7.5% to $439,539 and price per square foot edged down 1.7% to $234. No luxury sales closed this month. Inventory grew a relatively modest 7.8% to 193 homes, keeping supply more balanced here than in most neighboring markets.

Kootenai County (Idaho)

Kootenai had 208 sales in February, down 7.1%, but the market dynamics here look notably different from much of Montana. Inventory actually declined 16.4% to 671 homes, while pending sales rose 14.9% to 278. That tighter supply is supporting prices: the average sale price climbed 17.7% to $772,000. The median sale price held nearly flat at $558,000. With 355 new listings hitting the market, up 4.1%, demand appears to be absorbing supply fairly quickly.

Spokane County (Washington)

Spokane saw 470 sales in February, down 4.7%, with the median sale price holding flat at $400,000. Homes are taking longer to sell, with the median days on market rising 30% to 26 days. Price per square foot softened 3.2% to $211. Inventory rose 17.3% to 2,324 homes, and new listings jumped 20.3% to 979. The market is slowing, but the median price holding steady at $400,000 may provide some reassurance for both buyers and sellers.

The Bottom Line

Inventory is the defining theme of February across our region. Supply is up sharply in most markets, and in places like Missoula, Ravalli, and Lewis & Clark, that shift is beginning to show up in softer pricing. Kootenai County is the notable exception, where tighter inventory continues to support values. For sellers, pricing accurately to current conditions matters more than ever. For buyers, there is more selection and, in many markets, more room to negotiate than there has been in recent years.

Data sourced from the Montana Regional MLS through March 5, 2026. Deemed reliable but not guaranteed.