The New Year is upon us. 2011 is here. It’s time to take a look back at 2010 and see how Real Estate sales faired compared to previous years. By now, most everyone knows that Real Estate sales have suffered a down turn. But are things improving?
The big news in Real Estate for 2010 is that the overall number of home sales rose. In the greater Bozeman area, sales of single-family homes in 2010 rose 15% over 2009, from 462 sales to 530*.

There is also good news for those in the building industry. 2010 saw a major increase in the sale of lots. In the greater Bozeman area, only 58 subdivision lots sold in 2009. However, 111 lots sold in 2010, an increase of over 91%!*

This increase in sales has yet to create an increase in prices, but it is a step in the right direction. For homeowners looking to sell, price continues to be the most influential factor in whether or not a property sells. There are many properties on the market that are still priced at or near peak pricing. These properties are not seeing much action and continue to sit on the market stagnantly. Sellers that price their property aggressively and according to current market conditions are getting a lot of showings and are usually successful in getting their home sold. There have been more multiple offer situations and bidding wars for properties that are priced attractively.

Predictions for 2011 vary greatly. Across the country, foreclosures are expected to continue to be an issue, and many don’t see prices beginning to rise until most of the foreclosure inventory has been worked through. Montana has had one of the lowest per capita foreclosure rates throughout the past few years, but foreclosures do affect our markets. According to a December, 2010 report by Realtytrac, 1 in 1692 housing units in Montana was a foreclosure property. Compare this to California (1 in 203), Nevada (1 in 84), or Arizona (1 in 201) and Montana looks pretty good.

Most economists agree the housing recovery will be choppy and will follow the jobs. As more out of work people find jobs, the housing market should improve. In the area of unemployment, Montana’s unemployment rate of 7.1% is well below the National average of 9.1% (December, 2010, U.S. Bureau of Labor Statistics).

Interest rates are still at historic lows, so if you have thought of buying but still haven’t, it is still a great time to do so. Buyers are finding they have more buying power with the new, lower interest rates, and are finding homeownership to be much more affordable than in years past. The Mortgage Bankers Association has stated they believe rates will remain low but could start to climb. Freddie Mac has predicted they may exceed 5% before the end of 2011.

2011 looks like a promising year for both buyers and sellers of Real Estate here in the Gallatin Valley. Sellers should look to stay well informed of competing properties and price their home according to current market conditions if they hope to sell. Buyers should make sure they have their financial ducks in a row and work closely with a Realtor® who can keep them informed when new properties hit the market.

*Information was based on information from the Gallatin Association of Realtors, Southwest Montana MLS. Includes only home sales reported through the MLS. This information is deemed reliable but not guaranteed.

Tim Ford is a Realtor® with Vellinga Real Estate. He can be reached by phone at 406-209-1214, email at timothyjford@gmail.com, or online at www.bozemanhouseandhome.com.