Real Estate Information

Thought to ponder-----

October of 1981 the 30 year mortgage topped at 18.45%, the consumer price index stood at 93.4 for the basket of goods

Fast forward to today

consumer price index stands at 226.72 or an increase of 243%,  the 30 year mortgage stands at 3.96% or a drop of 78.54%

NOW LETS TRANSLATE INTO A PROPERTY PURCHASE IN YELLOWSTONE COUNTY

1981 THE AVERAGE PROPERTY THROUGH MLS SOLD FOR $63,337 @18.45% FOR 30 YEARS  $977.83 PRINCIPAL AND INTEREST

2011 THE AVERAGE PROPERTY THROUGH MLS SOLD FOR $190,089 @3.96% FOR 30 YEARS  $917.39 PRINCIPAL AND INTEREST

NOW LETS TRANSLATE INTO A PROPERTY PURCHASE IN  THE UNITED SATES

1981 THE AVERAGE HOME IN THE U.S SOLD FOR $83,700 @18.45% FOR 30 YEARS  $1292.21 PRINCIPAL AND INTEREST 

2011 THE AVERAGE HOME IN THE U.S SOLD FOR  $257,600 @3.96% FOR 30 YEARS  $1223.89 PRINCIPAL AND INTEREST

SO THE THOUGHT TO PONDER ………

DO YOU BELIEVE THE INTEREST RATE OR PRICING ON HOUSES WILL FALL FURTHER AND MAKE HOUSING LESS COSTLY …..OR …….. ARE WE AT THE LOW POINT IN THE CYCLE, SO  WHETHER IT IS INTEREST RATES OR THE PRICE OF HOUSE THE COSTS WILL GO UP ?

IS THIS A HISTORIC TIME TO BUY PROPERTY?

549 Cherry Hills Road

NEW PRICE  $259,549

Don't miss out on this brand new home, located near Lake Hills Golf Course, 3 bedrooms, 2 baths, 3 car attached garage, large yard, storage space & room to expand!  Call  Howard today to view this beautiful home 245-6890

2011 END OF THE YEAR REPORT

THE GOOD, THE BAD, THE DIRECTION

MY FIRST COMMENT ABOUT 2011 IS, I AM GLAD IT IS IN TH REAR VIEW MIRROR. MY BELIEF IS 2011 GOES INTO THE RECORD BOOKS AS THE LOW POINT IN REAL ESTATE UNIT SALES AND MOST PROBABLY PRICING IN THIS REAL CYCLE IN YELLOWSTONE COUNTY. THAT BEING SAID THAT DOES NOT MEAN A BOUNCE IN 2012. WHAT IT MEANS IS, MOST PROBABLY, STABILITY WITH A BIAS TOWARDS AN UPWARD MOVEMENT. THE MOST DIFFICULT ASPECT OF 2011 WAS THE FINANCING ARENA, ALTHOUGH RATES ARE INCREDIBLE, THE HOOPS TO JUMP THROUGH TO OBTAIN FINANCING ARE NOT INSIGNIFICANT AND LEAD TO DISCOURAGEMENT OF PURCHASERS DURING THE PROCESS. 2011 WAS THE HIGHEST RATE OF FAILED TRANSACTION THAT I HAVE EXPERIENCED IN MY THIRTY YEARS IN THE BUSINESS.  I HOPE 2012 SLOWS THE CHANGES WITHIN LENDING PRACTICES TO GIVE MORE STABILITY AND CONFIDENCE TO PURCHASERS.

FIRST THE POSITIVES OF 2011. THERE ARE ACTUALLY THREE MAJOR POSITIVES THAT YELLOWSTONE COUNTY ENDED 2011 WITH, ONE IS INVENTORY 20% BELOW 2010 AT THE END OF THE YEAR, THE PENDING SALES BEING UP 17% AS COMPARED WITH 2010 AND LAST WOULD BE THE SMALL DECLINE IN UNIT SALES COMPARED TO 2010.                                                                                                                          WE CONTINUED TO SEE NEW HOME CONSTRUCTION DECLINE AND 18% DECLINE COMPARED TO 2010 AND A FALL OF 54% SINCE 2007. WHILE EXTREMELY DIFFICULT BUSINESS ENVIRONMENT FOR MY FRIENDS IN THE BUILDING OF HOMES, IN THE LONG RUN THE SURVIVORS WILL BE HEALTHIER AND MORE  PROFITABLE.                                                                                                                                           LAST THE RENTAL MARKET SHOWS THAT GROWTH IS OCCURRING WITH YELLOWSTONE COUNTY WITH LESS UNITS AVAILABLE AND POSITIVE GROWTH IN RENTAL RATES. AS THE RENTAL MARKET CONTINUES TO STRENGTHEN THIS WILL CONTRIBUTE TO THE CONFIDENCE OF PURCHASERS SINCE AT THIS TIME THERE IS JUST $86 DOLLARS DIFFERENCE IN THE MONTH COST TO RENT THE MEDIAN HOUSE FOR RENT AS COMPARED TO PURCHASING THE MEDIAN PRICED HOUSE PAYMENT WITH TAXES AND INSURANCE. THAT DIFFERENCE IN 2008 WAS $391.    

FINALLY I WANT TO THANK ALL MY GREAT CUSTOMERS FOR ALLOWING ME TO HELP THEM ACHIEVE THEIR REAL ESTATE GOALS IN 2011, ALTHOUGH A DIFFICULT, WITHOUT LOYAL CUSTOMERS IT WOULD HAVE BEEN A MORE DIFFICULT YEAR.      

Open 1-3 PM

549 Cherry Hills Road

Be the first family to own this energy efficient & spacious home!  Over 2,800 s. ft. with 3 bedrooms, 2 baths, 3 car garage, lower level ready for your personal touch.  Located near Lake Hills Golf Course in an area of new homes!  Come see it now!

The market positives inventory down and number of sales  is closing the gap on 2010, prices are down about 3% year over year same time period.My belief is 2011 will go down as the low point in the market place this cycle and by the end of the 1st quarter we should be seeing year overyear increase in sales and at the minimum stable prices. this should help give both buyers and sellers confidence which will improve market conditions from both perspectives.

ONLY ONE OTHER TIME IN THE PAST THIRTY YEARS HAVE I SEEN WHERE IT IS CHEAPER TO OWN THAN RENT IN YELLOWSTONE COUNTY. THAT TIME THE LATE 1980'S, CAUSED BY THE RECESSION AND FORECLOSURES OF THAT PERIOD OF TIME. YELLOWSTONE COUNTY WAS LIKE LAS VEGAS IS NOW WITH OVER 600 FHA REPOS AND 100 VA REPOS ADVERTISED IN THE PAPER EVERY SUNDAY. HOME PRICES HAD FALLEN FROM FORECLOSURES AND POPULATION DECLINE IN YELLOWSTONE COUNTY AND INTEREST RATE HAD DROPPED FROM 13% ON A 30 YEAR MORTGAGE ALL THE WAY DOWN TO THE REASONABLE 9% RANGE. THIS TIME AROUND WE HAVE SEEN PRICES DECLINE SLIGHTLY AND INTEREST RATES SHARPLY DECLINE FROM 6.38% TO 4.11% FOR A 30 YEAR MORTGAGE. RENTS HAVE MOVED UP AND POPULATION IN YELLOWSTONE COUNTY HAS ALSO INCREASED.  JUST LIKE THE LAST TIME AROUND THERE WILL BE A WINDOW OF OPPORTUNITY TO MOVE FROM RENTING TO OWNERSHIP THAT WILL PROBABLY BE OPEN FOR 6 TO 12 MONTHS. BELOW IS THE COMPARISONS IN GRAPHS. PLEASE FEEL FREE TO CALL OR E-MAIL WITH QUESTION OR IF YOU NEED HELP BUYING OR SELLING.

Open 1-3

Sunday, November 13, 2011

2545 Avalon Road

Located off Poly Drive West of Zimmerman Trail

Life flows easily in this wonderfuly family home!

$214,000

Open 1-3 PM

719 Wyoming Avenue, Laurel

Sun filled rooms, lovingly cared for home!  You will be impressed with this neat & tidy home featuring 2 bedrooms, 1 bath, laundry room, country style kitchen with tile flooring, storage, huge deck, fenced yard, garage and more!  See it today!

Open 1-3

Saturday, October 22, 2011

549 Cherry Hills Road

Directions:  Wicks Lane to St. Andrews, North on St. Andrews to Annandale, West on Annandale to Cherry Hills Road

$269,900

Brand new home built by Specialized Construction and waiting for your family.  3 bedrooms, 2 baths, open living area, custom kitchen, 3 car garage plus room to expand.  Energy saver package