Is now the time to buy your new Bozeman home?
As a Bozeman Real Estate agent I get asked on a regular basis how the market is doing. It comes up over dinner, at any event I attend, and sometimes just in passing. It is a topic on everyones’ minds, seems we all have to have a place to live and the American Dream is still to be a home owner.
The answer is a little more involved than a simple yes, it’s a great time to buy! It is dependent on the personal situation you are in. Let’s take a look a few scenarios:
Long term Real Estate investors: Are you looking to purchase some investments? Wanting to
supplement your income for the long haul and plan on that same income for retirement? It is an awesome time to purchase. Interest rates make the payment low enough that, for the first time, rents can cover your payment in the Bozeman area! This makes the opportunity for planning your long term strategies more realistic during opportunity for planning your long term strategies more realistic during the short term. As an investor, you should take advantage of the current market.
Short term Real Estate investors: Are you looking to purchase a property and flip it for a quick profit? Your outlook is rather bleak at the moment. Home prices are relatively stable, but not looking like they will keep up with inflation, therefore, a higher purchase price in the next few years may be unlikely. If you have purchased a true fixer in a foreclosure process, you may stand a better chance, however, building material costs are on the high side presently and may make your repairs more than expected, thus eating into any “profit” you may assume is available. I would rethink this strategy and make it a long term investment instead.
Current Homeowners wanting to upsize or downsize: While you may think this is an awful market to sell your Bozeman home in, it may surprise you what the outcome could be. I currently have a homeowner that wanted to reduce their monthly expenses in order to have a better
quality of life. They were a little distraught over the fact their home, once worth $325,000, was now only worth $275,000 and were not sure they wanted to lose $50,000 in the present market. When I showed them the new home they were purchasing had also gone from being worth $275,000 to $225,000, they realized as long as they purchased in the same market, they were buying someone elses loss as well, thus creating a wash. The real winning portion of this, they financed the same amount of money on the new home purchase, in one mortgage, with a 3.875% interest rate, effectively lowering their monthly expenses by nearly $1,000 per month! What could you do with the extra money? They could not have refinanced, they owed more than 80% of of the homes value but the new home purchase allows them to meet all their goals! This is a winning combination for the present market.
First Time Home Buyer: If you have never purchased a home before, this is your prime opportunity. It is the least expensive Bozeman housing market in years, and interest rates have never been at these rates. It is a wonderful opportunity to end up with a mortgage payment that is comparable to your rent and begin the dream of home ownership. While you’re thinking about it, consider a 15 year mortgage and get your home paid off by the time you retire! Rates are even better and sometimes the mortgage can be very affordable, even at a 15 year payoff.
If you are trying to decide if you are ready to purchase and would like to preview some homes in Bozeman, please call, email or text. I would love to discuss the market in relationship to your situation and needs.
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