Welcome to our February Newsletter. Hope you’ll scroll down and catch the articles that interest you. There is just so much information out there, and both of us are attending classes and seminars and spending time reading new information on the net that we can share with you.
Please check out our business page on Facebook – Bozeman Real Estate – for up-to-the-minute info on real estate.
It looks like it’s going to be a great year for real estate in our area, and we look forward to helping you – or those that you refer to us – accomplish your/their goals!
Sharon and Brian
LET US BE YOUR “SHERPAS”
You don’t need to climb Mount Everest, but either selling or buying a home (or both) can feel like that. You need a guide – with wisdom, emotional intelligence and confidence. And that’s where we can bring our vast experience from hundreds of transactions, plus our knowledge and empathy to help you navigate what can be a stressful, bewildering experience.
We combine our in-depth — and often intuitive — knowledge of the local market, the real estate process and negotiating expertise to help buyers and sellers make wise decisions and feel confident about those decisions and results.
Give us a call when you need help with real estate! We’ll be there for you.
BUYER DEMOGRAPHICS – 2015
Here are end-of-year figures for Bozeman, Big Sky & Ennis, Closed properties 1/1/2015-12/31/2015 – from ERA’s database for our buyers.
Our sales are 64% to primary home buyers, 28% for investment and 5% for 2nd homes.
Montana is still the largest source of our buyers, with California, Washington and Texas following. The western states dominate our buyers, but some are from the midwest and east.
ECONOMIC OUTLOOK SEMINAR FOR MONTANA
Sponsored by the Bureau of Business and Economic Research at UM, this 41st annual meeting was attended on Feb. 3 by Bozeman’s business community to learn about our economic climate. Subjects covered were Health Care, Non-resident Travel, Agriculture, Manufacturing and Forest Products, Real Estate, Energy and Taxes.
Some Econ Seminar Highlights:
*The U.S. Economy – Good but not Great
*Another Fall for Commodity Prices
*Montana Economy Reaches Full Employment
*New Focus: Construction and Retailing
*Wages Grew Faster Than Employment Last Year
*Gallatin County Leads State Inflation-adjusted Wages and Salaries for 2011 to 2015
*Gallatin County’s Economic Base Defined (led by 28% MSU and State Government and Trade Center – Prof. Services at 19%)
*Federal Government Employment is Declining (from 6-12% in categories)
*Health Care and Social Assistance is Montana’s Largest Industry (with Retail and Construction following by half each)
*Multi-family Construction Shows Particular Strength
*Gallatin County Real Estate Market Looking Much Healthier than 2010:
Number of sales down just a bit from 2014 (lack of inventory part of reason)
Median Sales Price is up to about $330,000
Days on Market down to about 95 from high of 117 in 2010.
*Tax mill levies vary according to community needs and valuation of properties
You get the idea… lots of great information. Call Sharon if you have specific questions.
Cost of Construction for a New Home
NAHB – National Association of Home Builders – August 2015
Over the years, NAHB has periodically conducted “construction cost surveys” to collect information from builders on the various components that go into the price of a typical single-family home. NAHB’s most recent construction cost survey (conducted in August of 2015) shows that, on average, 61.8 percent of the sales price goes to construction costs and 18.2 percent to the finished lot costs. On average, builder profit (including owners’ salary and return on capital) accounts for 9.0 percent of the sales prices.
Costs are broken down into eight major construction stages:
- Interior finishes 30%
- Framing 18%
- Exterior finishes 15%
- Major system rough-ins 13%
- Foundations 6%
- Final steps 8%
- Site work 6%
- Other costs 5%
We think you’ll enjoy this article as it explains the methodology and how it relates to different markets. Click here: http://tinyurl.com/hnw582e
PLAYHOUSE and DOG HOUSES ON PARADE
Watch for this really fun show sponsored by our local home builders at the Gallatin Valley Mall starting Feb. 16. They will move to the SWMBIA Home Expo at Brick Breeden Fieldhouse on March 18. There will be a drawing on March 20 to win the playhouse and dog houses for your own, or your grandchildrens’ back yards!
MISCONCEPTIONS OF MANY FIRST-TIME BUYERS
Many first-time buyers and others are likely to assume they need a higher down payment to qualify for a mortgage. Other concerns of first-timers are fear about the complicated process, concern about the economic outlook, and some skepticism about ownership versus renting.
Many are not familiar with low-down-payment programs, such as those offered by the Federal Housing Administration. Many consumers believe that they need 16-20 percent for a down payment in order to qualify for a mortgage.
But in reality, homes can be purchased with as little as a 3 percent down payment. Rules enacted in 2015 that decreased the amount of mortgage insurance borrowers must pay on FHA loans, and Fannie Mae and Freddie Mac lowering down payment minimums may have boosted first-time participation.
There are more options out there than many buyers realize, and they really need to look into them before they give up. Call us or your banker, and you may be pleasantly surprised about what is possible!