Distinctly Montana Magazine

W W W. D I S T I N C T LY M O N TA N A . C O M 39 with a renewed strength and improved investor confi dence. The challenge in 2015 will be the declining Canadian dollar and potentially less spending by our neighbors to the north. Helena saw sales gains of residential properties up to 1,032 in 2014 from 935 in 2013, and the average price moved to $223,076 from $218,180. Great Falls had a bit of a jump in number of residential sales from 1,053 in 2013 to 1,128 last year, while the average price rose from $183,772 to $189,185. Butte reported a large gain percentage-wise of residential homes sold from 427 in 2013 to 534 in 2014, and the average price grew somewhat from $135,272 to $139,667. These three markets are al- most exclusively primary residences and tend to have many less second home transactions than Bozeman and the Flathead. The Missoula market also showed a small increase in residential sales to 2,433 for 2014 from 2,375 in 2013, as well as a minimal average price increase from $238,684 to $241,424. The Bitterroot Valley, one of the last markets to stabilize, has posted nice gains in home sales with 574 in 2014 versus 522 in 2013, but average price decreased from $244,268 to $238,934. Missoula's medical, retail, and commercial sectors are all growing at a brisk rate. What are the factors that are causing real estate numbers to grow in such a healthy manner? The top reasons are population growth, increased tourism which leads to second home sales, strong job demand coupled with low unemployment, low interest rates, a re-emerging construction industry, and the oil and gas activity in Eastern Montana. The millennial buy- ers (those born from 1980 to 2000) are a strong trend that is fueling the fi rst-time homebuyer market. They represent approximately 25% of the U.S. population, and they are confi dent about their job future, ready to settle down and start families, and are very bullish on real estate. A January press release from the Gover- nor's Offi ce about Montana's unemploy- ment rate gives further good news. The year-end fi gure fi nished at 4.2%, which was a full percentage point down from 2013 and well below the national rate of 5.6%. According to Governor Steve Bullock, "Montana fi nished 2014 with more employment growth, which will likely put the year into the history books as one of the strongest years for our economy." Unemployment rates ranges from 1.7 in Fallon County (Baker) to 11.5 in Lincoln County (Libby). Unemploy- ment fi gures for the counties that we featured above include 3.2 for Gallatin (Bozeman), 3.0 for Yellowstone (Billings), 6.2 for Flathead, 3.5 for Lewis & Clark (Hel- ena), 3.7 for Cascade (Great Falls), 4.4 for Silver Bow (Butte), 4.0 for Missoula, and 6.0 for Ravalli (Bitterroot). Look for 2015 to bring similar real estate growth to existing home sales in Montana and increased new con- struction, especially in the western part of the state. Robyn Erlenbush is a third-generation Montanan who lives in Bozeman. She owns ERA Landmark Real Estate with offi ces in Bozeman, Big Sky, Livingston, and Ennis along with NAI Land- mark Commercial, and Intermoun- tain Property Management. robyn@eralandmark.com MISSOULA "For the third year in a row, we have seen strong year-over-year growth and nice increases in values."

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