Distinctly Montana Magazine

Gently Used and New Furniture and Lighting By Robyn Erlenbush High End to Every Day Furnishings Always Something New 1662 Bobcat Drive Bozeman 406 585-0700 2ndimpressions@qwestoffice.net 64 A s our real estate market continues to improve significantly across the state of Montana, it is intriguing to explore not only the statistics but also the evolving buyer profile, which varies slightly for each community. So who specifically is purchasing properties to get the real estate ball rolling again? Below are several categories of buyers and why they are now confident to get off the fence and finally invest in Montana real estate. First, let's look at the basic sector which is prevalent in every market. Entry level condos, townhomes and single-family homes are being snapped up by first-time home buyers who feel confidence in our local economy and are taking advantage of historically low interest rates. Also parents of MSU, U of M, and other college students are moving back into ownership due to the shortage of rentals and the strong outlook for appreciation in the coming years. This segment of the market, under $350,000, has about three months of supply. Sales are brisk, multiple offers are not uncommon, and most properties sell very near full price and sometimes over. Also occurring across the state, the move-up buyer is back in the market. When housing was moving slowly, most owners who did not have to sell sat tight on the sidelines, not wanting to risk the hassles of selling, losing money on the sale, or competing with the bank-owned and distressed competition. As conditions have stabilized and improved, this segment of the market is having great success in selling their existing home and moving up to more bedrooms, more space, and greater amenities. In many of the larger markets, including Billings, Bozeman, Flathead, and Missoula, the investor is also back, purchasing single-family homes and condos for long-term rentals. Any type of income property or multi-family units, such as duplexes and apartments, are selling at a premium if they are in good condition. The other play in the market is "land banking." Large developers and small builders are buying up existing pieces of ground for future subdivisions or to use as inventory for their building business. These are purchases that are excellent values in our region, and are reflective of strong local economies, college towns, and retail trade centers. In the recreational and scenic locations, the long anticipated mid-market and high-end buyers are returning to purchase second homes and legacy residences (a property that will stay in the family for generations to come). There is still an abundance of inventory from $450,000 and above. This buyer is more cautious than in the past and makes their decision on value. These segments have an immense variety of available properties from which to choose. And it is also time to consider retirement housing. The empty nester can now sell their multi-bedroom family home, either in Montana or elsewhere. They realize that they require much less space and prefer universal design and low maintenance. They look for places to entertain their children, grandchildren, and friends for holiday get-togethers and vacations. The outdoor amenities across the state of Montana create the perfect backyard and are getting much national attention as the perfect place to retire. The following real estate sales data is provided by local Realtor® boards and complied by Scott Richard of Montana State University-Billings. The number D I ST I NCT LY M ONTANA • SU M M E R 2013

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