Billings Montana Real Estate Blog Market Stats

Open House, Sunday, May 20, 2012

Thu, 17 May 2012 01:00:00 GMT

1126 Miles Avenue

Open 1-3

Sunday, May 20, 2012

$120,900

Delightful home with designer colors, great living spaces both inside & out 2 bedrooms, 1 bath, storage shed, fenced yard and more!

Market update at glance April 2012

Sat, 05 May 2012 01:00:00 GMT

Another month and a third of the way through 2012. The market is moving faster than what I expected, I truly believed that it would take till late summer to have the improvement in numbers that we are seeing. All the numbers are stand outs, so I will comment first on price movement. When you look at the both the average and median selling price it appears the market is really making a movement and it has, yet not quite as big as it appears on the surface the “REAL APPRECIATION” YEAR OVER YEAR BASED BOTH ON PRICE AND SIZE IS A GOOD SOLID 2%. Reviewing the numbers below you can see the market has turned in all categories. This does not mean all the sudden that sellers have the upper hand in negotiations, but it does mean we have left the “buyers” market where the buyer had the upper hand in negotiations. We are now in a balanced situation where both parties need to be reasonable to successfully complete a transaction. I have included graphs below for a bit of historical perspective on where we are today. Big improvement over 2011 and close to matching the “tax credit fueled market of 2010” yet we are still 20% below the 2008 figures in terms of sales so things are positive, yet we still have a ways to go to reach our previous levels of activity. Interest rates are still at their historical lows so it is a great time to make a move in the market. The rental market continues move to a strong landlords market so rents will be moving in a direction to increase returns on income producing properties.

As always if you need more information about the market or buying and selling please call or e-mail.

Market update at glance		Year	Percentage Increase
Yellowstone County	04/30/2012	2011	2012	or -Decrease

Residential Closed Sales Units		427	503		18%

Residential Pending Sales Units		254	308		21%

Residential Active Property For Sale		926	600		-35%

Average sales price Single family Home		$197,397	$212,073		7%

Average Square feet Single family Home		2324	2441		5%

Median sales price Single family Home		$179,900	$189,995		6%

Median Square feet Single family Home		2216	2307		4%

Average Days on Market Till Offer Received
Single Family Home		84	73		-13%

Absorption rate -	TIME IN DAYS
Time it would take for all existing			181
properties to sell with no new inventory
coming into the market place - residential

SINGLE FAMILY PERMITS MONTH		20	33		65%

SINGLE FAMILY PERMITS YEAR		56	95		70%

Average # Rentals Advertised Sundays		335	279		-17%

Average Asking Price Rental Home		$1,061	$1,007		-5%

Average Asking Price Rental Apartment		$657	$670		2%

New Listing!

Wed, 18 Apr 2012 01:00:00 GMT

Looking for space? This home has room to spare!

359 Stewart Court South

$203,000

4 bedrooms, 3 baths, living room, dining, room, family room, storage space, oversized 2 car garage, fenced yard, deck and more! Call to see this home today 245-6890

Market update at a glance 1st quarter 2012

Tue, 10 Apr 2012 01:00:00 GMT

Here we are at the end of the March, ending the first quarter. Time flies when you are having fun, the first two months behaved like I expected, pretty much a slog, then March came. It behaved like someone turned on the faucet. The market has gone from where buyers definitely had the upper hand in negotiations to a balance in the market place, where neither buyer nor sellers have more power. The first thing that happens as this change takes place, buyers resist, and continue along the same path of low offers and asking for the world, only with the change, sellers with properties in decent condition and reasonable location don’t have to accept and can respond in a reasonable fashion and get their property sold. The positive from the buyer’s side they can feel more comfortable that the market is at worst flat and most probably headed in a positive direction. With inventory running 29% below last year, pending sales up 15% and 30 year mortgagees at 4% plus the economy of Yellowstone county growing it appears the train is leaving the station of poor performance, albeit slowly yet a great positive. Other items of note are both new construction with a great improvement over last year in number of permits issued so far and fi you are and investor or owner of mutli family property availability is down and rents are starting to move up. If buyers elect not buy instead of rent this will put more pressure on rents and prices will increase faster, since the lead time and complexity of bring more rental units to market is huge stumbling block availability will stay constrained until rents make overcoming the problems of supplying new units profitable. The market appears to progressing about 3 to 4 months faster than I thought it would so it will be interesting to see how this next quarter performs. Stay tuned!!!!!

Market update at glance		Year	Percentage Increase
Yellowstone County 3/31/2012		2011	2012	or -Decrease

Residential Closed Sales Units		332	345		4%

Residential Pending Sales Units		241	276		15%

Residential Active Property For Sale		851	605		-29%

Average sales price Single family Home		$207,665	$210,586		1%

Average Square feet Single family Home		2444	2465		1%

Median sales price Single family Home		$185,100	$189,925		3%

Median Square feet Single family Home		2326	2327		0%

Average Days on Market Till Offer Received
Single Family Home		91	83		-9%

Absorption rate -	TIME IN DAYS
Time it would take for all existing			190
properties to sell with no new inventory
coming into the market place - residential

SINGLE FAMILY PERMITS MONTH		19	26		37%

SINGLE FAMILY PERMITS YEAR		36	62		72%

Average # Rentals Advertised Sundays		335	297		-11%

Average Asking Price Rental Home		$1,061	$999		-6%

Average Asking Price Rental Apartment		$657	$665		1%

MARKET UPDATE AT GLANCE FEBUARY 2012

Tue, 06 Mar 2012 01:00:00 GMT

HERE WE ARE ROARING THROUGH 2012. TWO MONTHS GONE AND TWO MONTHS OF WINTER WITH JUST SOME COOL WEATHER, NOTHING LIKE THE LAST TWO WINTERS IN TERMS OF SNOW. INTEREST RATES ABOUT AT 3.89% FOR A 30 YEAR FIXED RATE MORTGAGE, 20% BELOW LAST YEAR AT THIS TIME; THOSE TWO THINGS COMBINED ARE SHOWING UP IN THE HOME SALES IN YELLOWSTONE COUNTY. CLOSED SALES AT A NICE CLIP ABOVE 2011, IN THE FIRST TWO MONTHS, ALTHOUGH I WOULD CONSIDER IT A BIT OF MISS MATCH OF A COMPARISON WITH THE FACTORS MENTIONED ABOVE. THE REAL BRIGHT SPOT IS THE DECREASE IN INVENTORY THAT ALONE WILL GET THE MARKET BACK TO BALANCE FASTER THAN INCREASE SALES. THE BALANCE OF THE INVENTORY DROP MEANS SELLERS WERE DISAPPOINTED WITH WHAT THE MARKET WOULD ALLOW FOR A SALES PRICE AND HAVE MOVED TO THE SIDELINES UNTIL PRICING PROSPECTS LOOK BRIGHTER. WHEN YOU LOOK AT THE SINGLE FAMILY BUILDING PERMITS NUMBERS YOU CAN SEE THE EFFECT OF BOTH WEATHER AND INTEREST RATE ENVIRONMENT CREATING POSITIVE MOMENTUM, HOPEFULLY FOR NEW HOME CONSTRUCTION AND RESALE’S THE INCREASED ACTIVITY IS INCREASED INTEREST IN THE MARKET AND NOT ALL ATTRIBUTABLE TO THE WEATHER PULLING SALES FORWARD IN THE YEAR. THE RENTAL MARKET CONTINUES TO MOVE TOWARDS THE OWNERS SIDE WITH DECREASING INVENTORY MEANING PRICE INCREASES WILL BECOMING FOR RENTERS TOWARD MID SUMMER TO EARLY FALL. NEGOTIATIONS STILL ARE PRETTY TESTY BETWEEN BUYER AND SELLER, WHICH I EXPECTED, YET THE BUYERS HAND STRENGTH WILL WEAKEN WITH THE DECREASE IN INVENTORY AND INCREASE IN SALES AS WE PROGRESS THROUGH THE YEAR.

Market update at glance	Year	Percentage Increase
Yellowstone County 2/29/2012	2011	2012	or -Decrease

Residential Closed Sales Units	158	196		24%

Residential Pending Sales Units	218	231		6%

Residential Active Property For Sale	826	586		-29%

Average sales price Single family Home	$207,597	$210,025		1%

Average Square feet Single family Home	2448	2440		0%

Median sales price Single family Home	$185,000	$191,000		3%

Median Square feet Single family Home	2322	2374		2%

Average Days on Market Till Offer Received
Single Family Home	87	85		-2%

Absorption rate - TIME IN DAYS
Time it would take for all existing		182
properties to sell with no new inventory
coming into the market place - residential

SINGLE FAMILY PERMITS MONTH	11	24		118%

SINGLE FAMILY PERMITS YEAR	17	36		112%

Average # Rentals Advertised Sundays	335	325		-3%

Average Asking Price Rental Home	$1,061	$986		-7%

Average Asking Price Rental Apartment	$657	$655		0%

Open House, Sunday, February 26, 2012

Fri, 24 Feb 2012 01:00:00 GMT

Open 1-3

February 26, 2012

549 Cherry Hills Road

Your family will enjoy this brand new energy smart home built by Specialized Construction. Open living area, custom kitchen, 3 bedrooms, 2 baths, 3 car attached garage, unfinished daylight level for future expansion, large storage space, deck and more! Come and see it! $259,549

Open House, February 12, 2012

Sat, 11 Feb 2012 01:00:00 GMT

Open 1-3 p.m.

719 Wyoming Avenue, Laurel

$141,750

Comfortable, affordable & squeaky clean! You will enjoy viewing this 2 bedroom, 1 bath home, detached garage, large deck, fenced yard, storage, separate laundry area, custom kitchen and more!

Income Producing Property

Sun, 29 Jan 2012 01:00:00 GMT

204 & 206 Calhoun Lane

You will want to know about this super outstanding value for your investment portfolio. The units on this duplex property include 4 bedrooms, 1 bath, large kitchen with oven/range, refrigerator, dishwasher. Off-street parking, washer & dryer hook-ups. The units rent for $950 each per month, gas heating system and more. Call to see this opportunity today!

Priced at $179,204

Open House, Sunday, January 22, 2012

Sat, 21 Jan 2012 01:00:00 GMT

Open House

Sunday, January 22, 2012

549 Cherry Hills Drive

$259,549

Beautiful brand new home built by Specialized Construction, Inc. has so many features you will fall in love! Spacious open living areas, vaulted ceilings, custom kitchen, 3 bedrooms, 2 baths main level, main level laundry, and lots of room for future expansion, storage galore, 3 car attached garage, deck and more! Come see it today!

A Home For All Seasons

Thu, 19 Jan 2012 01:00:00 GMT

355 31st Street West

$217,000

Your family will enjoy this home in all Seasons! Bright & light living areas, country style kitchen, 4 bedrooms, 3 baths, spacious family room with gas fireplace, office/hobby room, storage galore, covered deck, unique garden shed, privacy fenced yard, immaculately clean, located in West Billings. Call today to see this home!

IS HOUSING CHEAPER NOW THAN 30 YEARS AGO ?

Thu, 12 Jan 2012 01:00:00 GMT

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?

New Pricing!

Wed, 11 Jan 2012 01:00:00 GMT

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

YEAR END REVIEW 2011

Tue, 10 Jan 2012 01:00:00 GMT

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.

Market update at glance		Year	Percentage Increase
Yellowstone County	12/31/2011	2010	2011	or -Decrease

Residential Closed Sales Units		1721	1675		-3%

Residential Pending Sales Units		149	175		17%

Residential Active Property For Sale		827	664		-20%

Average sales price Single family Home		$212,730	$208,121		-2%

Average Square feet Single family Home		2371	2372		0%

Median sales price Single family Home		$189,250	$184,900		-2%

Median Square feet Single family Home		2242	2222		-1%

Average Days on Market Till Offer Received
Single Family Home		65	71		9%

Absorption rate -	TIME IN DAYS
Time it would take for all existing			186
properties to sell with no new inventory
coming into the market place - residential

SINGLE FAMILY PERMITS MONTH		11	11		0%

SINGLE FAMILY PERMITS YEAR		240	197		-18%

Average # Rentals Advertised Sundays		345	335		-3%

Average Asking Price Rental Home		$1,041	$1,061		2%

Average Asking Price Rental Apartment		$645	$657		2%

Open House Sunday, January 8, 2012

Sat, 07 Jan 2012 01:00:00 GMT

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!

Market up date at glance november 2011

Mon, 05 Dec 2011 14:02:00 GMT

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.

Market update at glance		Year	Percentage Increase
Yellowstone County	11/30/2011	2010	2011	or -Decrease

Residential Closed Sales Units		1601	1542		-4%

Residential Pending Sales Units		193	198		3%

Residential Active Property For Sale		870	766		-12%

Average sales price Single family Home		$212,424	$206,330		-3%

Average Square feet Single family Home		2361	2356		0%

Median sales price Single family Home		$188,900	$183,700		-3%

Median Square feet Single family Home		2226	2211		-1%

Average Days on Market Till Offer Received
Single Family Home		65	71		9%

Absorption rate -	TIME IN DAYS
Time it would take for all existing			190
properties to sell with no new inventory
coming into the market place - residential

SINGLE FAMILY PERMITS MONTH		16	20		25%

SINGLE FAMILY PERMITS YEAR		229	186		-19%

Average # Rentals Advertised Sundays		345	329		-5%

Average Asking Price Rental Home		$1,041	$1,065		2%

Average Asking Price Rental Apartment		$645	$658		2%

Owning cheaper than rent?

Sun, 20 Nov 2011 13:15:00 GMT

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 House, Sunday, November 13, 2011

Sun, 13 Nov 2011 11:50:00 GMT

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 House Sunday, October 23, 2011

Sun, 23 Oct 2011 10:07:00 GMT

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 House Saturday, October 22, 2011

Fri, 21 Oct 2011 17:47:00 GMT

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

Market update at a glance septemebr 2011

Fri, 07 Oct 2011 01:00:00 GMT

Market update at glance		Year	Percentage Increase
Yellowstone County	09/30/2011	2010	2011	or -Decrease

Residential Closed Sales Units		1329	1268		-5%

Residential Pending Sales Units		226	242		7%

Residential Active Property For Sale		1006	907		-10%

Average sales price Single family Home		$212,368	$207,214		-2%

Average Square feet Single family Home		2350	2364		1%

Median sales price Single family Home		$188,950	$182,900		-3%

Median Square feet Single family Home		2214	2208		0%

Average Days on Market Till Offer Received
Single Family Home		62	72		16%

Absorption rate -	TIME IN DAYS
Time it would take for all existing			209
properties to sell with no new inventory
coming into the market place - residential

SINGLE FAMILY PERMITS MONTH		15	19		27%

SINGLE FAMILY PERMITS YEAR		188	151		-20%

Average # Rentals Advertised Sundays		345	321		-7%

Average Asking Price Rental Home		$1,041	$1,058		2%

Average Asking Price Rental Apartment		$645	$650		1%