The question I get asked most often is “Is anything selling?” And the answer is a resounding “Yes.”

As I mentioned in my last Real Estate Market update, many people were concerned that housing sales could not keep up with the increase seen in 2010 because there is no longer a tax credit for first time homebuyers. The reality? Sales for the first half of 2011 actually outpaced the first half of 2010. 280 homes sold in Bozeman from January 1st through July 1st in 2011, versus 273 homes in 2010, even without the tax credit incentive.
Bad news coming from the National level continues to influence local emotions. However, Real Estate is local and the State of Montana and City of Bozeman are fairing much better than most of the country. Montana’s unemployment rate continues to hover around 7.3%, down considerably from the National average of 9.2%.

On the National level, Foreclosure filings dropped for the 8th consecutive month, according to Realtytrac, a National foreclosure tracking firm. In May, they were down 3.8% from April, and down 29% from a year ago. The National average foreclosure rate is 1 out of every 605 households. In Montana, that number is 1 out of every 1,919 homes. Nevada is still fairing the worst, with 1 out of every 103 homes facing foreclosure.

According to the City of Bozeman’s website, permits for new construction of homes in Bozeman are also up this year. Permits for single family homes reached their peak in 2005 at 265 homes. They dropped to 93 in 2008 and 71 in 2009. 2010 saw a big uptick as 144 permits for new construction were applied for, and 2011 has already outpaced 2010 as 147 permits were applied for as of June.

The data below reflects sales of homes in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. It includes sales of single family homes and does not include townhomes or condominiums. The data includes home sales reported through the local Southwest Montana MLS, and does not include private party sales.

Tim Ford – REALTOR©