Recently, there have been frequent cases in Billings where individuals have faced difficulties after signing contracts without checking HOA regulations. There have been instances where homeowners had to wait months for HOA approval to install a fence in their yard, and others who discovered post-contract that renting was restricted by HOA rules. The housing market in Billings shows somewhat mixed trends lately. According to Zillow, the average home value is $398,212, which is a 1.9 percent increase from the previous year, but inventory has risen to 486 homes as of February 2026, leading to a faster accumulation of listings. Some data indicates that the average transaction period has increased to 106 days (up from 69 days last year). This signals a slowdown in the market compared to before, while prices continue to rise.

This situation could work in favor of buyers, but for properties with an HOA, it may be more important to check the regulations before considering the price. In addition to the monthly HOA fees, it's advisable to confirm the approval process for exterior changes, rental restrictions, and reserve fund status in writing beforehand. In a market where transaction periods are longer, there is ample time to review these documents, reducing the urgency to make quick decisions.

One common mistake when budgeting is overlooking HOA costs in addition to principal and interest. Even if property taxes and insurance premiums are calculated, failing to include HOA fees as a fixed monthly expense can lead to a greater financial burden than expected. The average effective property tax rate in Montana is relatively low, ranging from 0.61 to 0.83 percent compared to the national average, but starting in 2026, a new flat rate of 1.9 percent will apply to second homes or non-residential properties, while a separate reduced rate will be introduced for primary residences. If the property is intended for primary residence, it's wise to verify this distinction before signing a contract. Families coming from out of state may approach it as a second home and find themselves subject to unexpectedly high tax rates, so caution is advised.

It's also important to consider long-term residency plans before making a decision. In a market where inventory is increasing and transaction periods are lengthening, it's worth considering whether there's a possibility of moving within a few years and what the demand in the neighborhood might be when reselling. Particularly in communities with an HOA, it's important to remember that the regulations will carry over to the buyer upon resale. Montana has long winters and significant heating costs, so it's essential to evaluate whether the area is truly livable for several years rather than just deciding based on neighborhood ambiance.

Managing credit scores is another aspect that can be easily overlooked. In a market with longer transaction periods, the time from contract to closing can extend, and making significant expenditures during this time can change the loan conditions by the closing date. It's also easy to overlook comparing conditions from multiple lenders, but in a time like now with ample transaction periods, there is enough time to compare various options. It's advisable to include closing costs in your calculations as well. Typically, these are known to be around 2 to 5 percent of the sale price, which, based on the average home value in Billings, amounts to approximately $8,000 to $20,000, so it should be prepared separately from the down payment.

It's also wise to set aside a contingency fund. After aligning the down payment and closing costs, it's easy to run out of funds, but considering the long winters and the importance of maintaining heating systems, it seems realistic to account for unexpected expenses in the first year of occupancy.

When viewing homes in Billings, it's necessary to develop the habit of assessing not only the conditions of the property itself but also the HOA documents, property tax distinctions, and future residency plans all at once. This article does not constitute investment or legal advice, and it is recommended to review HOA documents with a real estate professional before finalizing any contracts.