Submitted by Anonymous on Sun, 04/29/2007 - 05:00.
Missoula Montana continues housing boom
The total number of home sales in Missoula has been on the upswing since 2002, according to the Missoula Organization of Realtors. Last year alone, nearly 1,500 homes were sold, a 3.6 percent increase over the previous year.
“We are, as the statistics are showing, still part of the 31 percent of the national market that is increasing rather than decreasing,” said Mary Marry, the organization's board president.
From Flathead to Gallatin counties, western Montana's housing market continues to see strong growth, she said, fueled in no small part by the fact that people keep moving here in search of a better quality of life.
Housing in the higher price ranges are selling very well with some properties experiencing a bidding war.
But for mid-tier and lower-price homes, it's a different story. While still booming, the market for houses priced between $250,000 and $400,000 is seeing slightly longer waits, and motivated sellers are adjusting their asking prices downward in response.
At least part of that is due to national news reports that markets in other regions are sliding fast, Rosbarsky said. Potential buyers are waiting a little longer and shopping around a little more.
On the other hand, there are virtually no low-income and affordable houses on the market. According to the Missoula Organization of Realtors' most recent report, the median-income family in Missoula County makes $43,200 a year and can afford a home for $143,000.
As of last week, only seven single-family stand-alone houses were listed on the market for less than $150,000.
But that's not counting condos, townhouses and foreclosures.
So far this year, 76 notices of foreclosure have been posted with the Missoula County Clerk and Recorder's Office - 13 more than this time last year. In fact, the number of foreclosures filed in Missoula County soared 22 percent last year, to 215 homes in 2006.
Of course, notices are not the same thing as actual foreclosures, and given Missoula's still-healthy real estate market, it's likely that a lot of these homes will be sold before they are put up for auction. The state as a whole is clocking only one foreclosure filing for every 3,522 households - a rate that places it 40th in the nation for its percentage of foreclosures, and helps to confirm the observation by local real estate agents that Missoula's market is among the nation's healthiest.
While Missoula's houses never hit the high-highs seen elsewhere in the nation, they also aren't experiencing the low-lows those markets are now facing.
“I think Missoula's market is leveling out a little, but it's always a strong market,” said Kate Joyce, who has been with Insured Titles in Missoula for 22 years. “We don't have peaks and valleys. It's steady.”
However, the perception of an emerging buyer's market on the national level has an effect on Missoula, said Rosbarsky of Clark Fork Realty. That is, it encourages mid-price buyers to be a little more careful, and their caution tends to rein in otherwise breakneck markets.
“I am seeing a few price reductions where people who are selling are re-evaluating and making some price adjustments downward,” said Judy Wahlberg, owner of RE/MAX Realty Consultants and a 28-year veteran of the Missoula housing market. “I think it's going to be a good year for sellers, but we may see a little bit more negotiation.”
Typically, a home will stay on the market longer during the slow winter months, she said. According to the Missoula realty organization, the current average number of days on the market is 129, a bit longer than last year's average of 110 but less than this time last year, when it was a patience-trying 140 days.
With homes going a bit more slowly, the organization is listing 222 sales so far this year, compared to 247 year-to-date sales in 2006. That's still more than the year-to-date totals of 2004 and 2005, which saw 202 sales.
Slightly slower sales helped push down the countywide median home price, which slipped to $205,000 so far in the new year. Last year, the median home price in Missoula County reached $206,850, a $14,850 increase over the previous year.
Part of what's helping to keep Missoula's prices afloat is the relative scarcity of housing, Rosbarsky explained. A massive influx of large subdivisions would probably have overbuilt for the market, which would have pulled the floor out from under prices.
High prices have made housing affordability a problem for many, and many mortgage companies have responded by offering an ever-increasing number of nontraditional loan programs. Alternative loans have proved popular and allowed a wider range of borrowers to purchase homes - but they also got some buyers into homes they couldn't afford.
Source: http://www.missoulian.com/articles/2007/04/29/news/local/news04.txt
“We are, as the statistics are showing, still part of the 31 percent of the national market that is increasing rather than decreasing,” said Mary Marry, the organization's board president.
From Flathead to Gallatin counties, western Montana's housing market continues to see strong growth, she said, fueled in no small part by the fact that people keep moving here in search of a better quality of life.
Housing in the higher price ranges are selling very well with some properties experiencing a bidding war.
But for mid-tier and lower-price homes, it's a different story. While still booming, the market for houses priced between $250,000 and $400,000 is seeing slightly longer waits, and motivated sellers are adjusting their asking prices downward in response.
At least part of that is due to national news reports that markets in other regions are sliding fast, Rosbarsky said. Potential buyers are waiting a little longer and shopping around a little more.
On the other hand, there are virtually no low-income and affordable houses on the market. According to the Missoula Organization of Realtors' most recent report, the median-income family in Missoula County makes $43,200 a year and can afford a home for $143,000.
As of last week, only seven single-family stand-alone houses were listed on the market for less than $150,000.
But that's not counting condos, townhouses and foreclosures.
So far this year, 76 notices of foreclosure have been posted with the Missoula County Clerk and Recorder's Office - 13 more than this time last year. In fact, the number of foreclosures filed in Missoula County soared 22 percent last year, to 215 homes in 2006.
Of course, notices are not the same thing as actual foreclosures, and given Missoula's still-healthy real estate market, it's likely that a lot of these homes will be sold before they are put up for auction. The state as a whole is clocking only one foreclosure filing for every 3,522 households - a rate that places it 40th in the nation for its percentage of foreclosures, and helps to confirm the observation by local real estate agents that Missoula's market is among the nation's healthiest.
While Missoula's houses never hit the high-highs seen elsewhere in the nation, they also aren't experiencing the low-lows those markets are now facing.
“I think Missoula's market is leveling out a little, but it's always a strong market,” said Kate Joyce, who has been with Insured Titles in Missoula for 22 years. “We don't have peaks and valleys. It's steady.”
However, the perception of an emerging buyer's market on the national level has an effect on Missoula, said Rosbarsky of Clark Fork Realty. That is, it encourages mid-price buyers to be a little more careful, and their caution tends to rein in otherwise breakneck markets.
“I am seeing a few price reductions where people who are selling are re-evaluating and making some price adjustments downward,” said Judy Wahlberg, owner of RE/MAX Realty Consultants and a 28-year veteran of the Missoula housing market. “I think it's going to be a good year for sellers, but we may see a little bit more negotiation.”
Typically, a home will stay on the market longer during the slow winter months, she said. According to the Missoula realty organization, the current average number of days on the market is 129, a bit longer than last year's average of 110 but less than this time last year, when it was a patience-trying 140 days.
With homes going a bit more slowly, the organization is listing 222 sales so far this year, compared to 247 year-to-date sales in 2006. That's still more than the year-to-date totals of 2004 and 2005, which saw 202 sales.
Slightly slower sales helped push down the countywide median home price, which slipped to $205,000 so far in the new year. Last year, the median home price in Missoula County reached $206,850, a $14,850 increase over the previous year.
Part of what's helping to keep Missoula's prices afloat is the relative scarcity of housing, Rosbarsky explained. A massive influx of large subdivisions would probably have overbuilt for the market, which would have pulled the floor out from under prices.
High prices have made housing affordability a problem for many, and many mortgage companies have responded by offering an ever-increasing number of nontraditional loan programs. Alternative loans have proved popular and allowed a wider range of borrowers to purchase homes - but they also got some buyers into homes they couldn't afford.
Source: http://www.missoulian.com/articles/2007/04/29/news/local/news04.txt
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