Housing market continues to improve

Montana’s housing market continues to improve, with nearly every major market across the state reporting an increase in activity through the first six months of the year. 

Locally, too, the resurgence has been strong, so said Mollie Kieran, of Molly Montana Real Estate.

“When the economic downturn took place real estate-sales came to an instant halt, it took a little longer for it to hit Montana, but when it hit real estate sales activity stopped and the housing rental market increased,” she said.

“The rental market has continually grown in our area to the point of requiring me to bring on additional office help especially now when the real estate market has had a huge recovery in our area,” Kiernan said.

Kieran said sales are boosted by interest rates as low as “we’ve ever seen while sales prices have become more realistic. “

The Montana Association of Realtors received sales data from the eight largest associations in the state, and in seven there was an increase in the number of single-family homes sold compared to the same time frame in 2011.

Overall, in the eight major markets in Montana, 3,725 single-family homes have been sold thus far in 2012 compared to 3,476 in 2011, an increase of 7.2 percent.

“Most of our markets, most of our major cities are up compared to last year and that is good news,” said MAR President Judy Gudgel. “Seven of the eight major cities are reporting improved numbers, and that is great to see.”

The Billings Association of Realtors  saw the largest increase in single-family home sales at the mid-way point of the year. Through the year’s first six months, BAR recorded 895 sales, up from 756 at this time last year for an increase of more than 18 percent.

The Missoula Organization of REALTORS® was next with an increase of 83 homes, followed by the Great Falls Association (+61), Helena Association (+56), Gallatin Association (+40), Bitterroot Association (+22) and the Butte Association (+19). Only the Northwest Association of REALTORS® reported a drop in the number of home sales from year-to-year, although the 633 home sales in 2012 is still an increase from when the market bottomed out in 2009. 

The average sales price of a home and the median sales price rose in five of the eight markets and the average days a home stayed on the market fell in four of the eight markets. Those figures do not include townhouses or condos, although every market in the state reported an increase in the number of those sales as well.

“There has been an improvement in housing demand,” Gudgel said. “Distressed properties are going down in our markets at the moment, and most markets are displaying a little bit of a low inventory right now. It will be interesting to see how that will play out.”

Two factors that are playing a role in the housing market continuing to improve in Montana are record-low interest rates and an increase in consumer confidence. Earlier this month mortgage buyer Freddie Mac said the average rate on a 30-year loan was 3.56 percent, and the rate is currently holding near that record-low figure.

 “From first-time buyers to growing families looking for more room, this may be the greatest time in American history to purchase a home,” Gudgel said. “Interest rates have never been so low in the history of housing and that presents a great opportunity. In many instances a mortgage payment is actually lower than a rent payment.”

For more information please contact a local association or call MAR at (406) 441-4871. A complete list of local associations in Montana is available at www.MontanaRealtors.org/mar-directory and complete 2012 statistics are available at www.MontanaRealtors.org/2012-mar-midyear-housing-statistics.