The New Year is upon us, and I would like to wish a Happy 2012 to you! In next month’s article, I’ll have a more in-depth overview of the 2011 season and compare it to years past. This month, I have included numbers year to date current as of December 1st, 2011.

As shown, 2011 sales numbers continue to outpace the past 4 years. However, prices this past year have been somewhat stagnant. For a time in the spring and early summer, it seemed as if prices may be rising in some residential areas, and then cooled as we moved into fall and winter. I expect to see a similar event this coming spring and summer.

Although many like to focus on prices as the greatest indicator of the Real Estate market, the overall number of sales is potentially more important. In order for prices to begin to rise, the number of sales must first increase, and I feel that we’re getting very close to a healthy number of sales throughout the valley.

Rates continue to remain at historic lows, hovering around and dipping below 4%. For the first time in years, owning in many areas throughout the valley has become less expensive then renting. Renting continues to be a great option for households that are unsure of what the future holds, but for those that see themselves in their next home for years to come, many buyers are finding that owning just makes more sense right now.

For individuals that are trying to decide whether to rent or buy, the biggest question to ask is how long they see themselves in their next place? If they have potential career transfers or relocations in their future, then the flexibility of renting makes more sense. However, for people that don’t see any big moves in their future, the perfect storm of low interest rates and great prices makes it an ideal time to buy.

Please peruse the data included for a snapshot of what’s happening in the market and look for my year-end report in next month’s issue. The included data reflects sales of homes in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. The data includes home sales reported through the local Southwest Montana MLS, and does not include private party sales.

Tim Ford – REALTOR ©