Gillette Wyoming Real Estate

By
Real Estate Agent with RE/MAX Professionals

It's hard to believe 2010 is already half over!  We have had such a great start to the year for the Gillette WY real estate market as well as the community of Gillette  as a whole. 

The first 6 months of the year we have seen a very high volume of homes moving.  New construction continues to be the hottest seller but some of the older and higher end homes have been moving lately as well.  We anticipated a drop off in home sales with the expiration of the tax credits.  However, we have been pleasently surprised that homes have continued to move very well.  We can attribute this to the amount of quality homes on the market coupled with interest rates that continue to hover around all time lows.

Gillette as a community has had a great start to 2010 as well.  There have been numerous grand openings including those of the 'Close to Home' Hospice Hospitality House and the highly anticipated opening of the brand new $52 million dollar Campbell County Recreation Center!  We are so fortunate to have so many amenities in this community.  It is truly a wonderful place to live, work, and raise a family.  We are proud to call Gillette Wyoming home!

Don't hesitate to contact us for more informstion on Gillette real estate or the community of Gillette!

 

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Rainer
59,226
Chris Wechner
CW Health Inc - Waterford, MI

Have you guys been hit very hard by the housing crisis?

I don't live anywhere near Wyoming (I live in the Detroit Area.), but I've always understood your area to have a lot of energy and mining job opportunities.  (I think natural gas is Eastern Wyoming's big thing, isn't it?)

 

If your area's housing costs got even lower, it seems like THAT might be a great area for investors to consider.  Am I overlooking something here?

Jun 02, 2010 03:54 AM #1
Rainer
62,203
Lexi & Jordan Ostlund
RE/MAX Professionals - Gillette, WY

Fortunately we were not hit with the housing crisis as the rest of the country.  In fact, our avg. sales price has gone down less than $1,000.  Northeast Wyo. is the energy capital of the nation.  While natural gas has been huge here in the past, it has fizzled out over the last year.  However we still have oil, and the largest coal rserves in the nation.

I would say that investment oppertunities in residential real estate are good because the rental market remansl hot.  However if you are looking to pick up a bunch of forclosed properties at bargain basement prices, I think you would be better served looking somewhere else.  Thanks for reading and commenting.  Please let us know if you have any further questions!

Jun 02, 2010 06:13 AM #2
Rainer
59,226
Chris Wechner
CW Health Inc - Waterford, MI

I appreciate YOUR insight.  It's always better to get this from people who live in the middle of it.  The news that gets reported to the rest of us tends to be hit or miss with its accuracy.

 

You mentioned that the rental market remains hot.  That promts two more questions from me:

  1. Do you have any idea what is keeping the rental market hot there?  What's contributing to this?
  2. What range of Cash-on-Cash return are landlords getting there: cash only and through borrowing?

 

I'm sorry to hear about your local area natural gas reserves fizzling.  There seems to be a push toward "clean coal" technology.  I don't hear very much about this in Detroit, but there was an obvious push campaigning this in West Virginia and Pennsylvania (other places with huge coal reserves).  Wyoming might get more coal business for a bit following that massive explosion in the West Virginia mine in April.

Jun 03, 2010 03:08 AM #3
Rainer
62,203
Lexi & Jordan Ostlund
RE/MAX Professionals - Gillette, WY

The rental market in Gillette spent 3 years with a vacancy rate of less than 1%.  In the last 2 years there has been an abundance of apartment complexes and rental properties that have been constructed.  These have helped to push our vacancy rate to around 5%. 

Gillette has always been a boom/bust town. We always have lots of out of town workers that are here during the booms and then move on when the boom settles down.  We had a large boom in 2004-2008.  The rental market has remained hot due to the large infrastructure projects that have continued since the boom.  Gillette is in the process of designing a water pipeline for $225 million dollars.  That will bring hundreds of workers to town for a few years.  Also there is a gas pipeline that is rumored to be bringing 1,000 workers to town for an extended period.  There have also been several coal fired power plants built in the last 2 years in the area.  All of these workers need a place to stay and thus the rental market is great!

We can't speak for other investors, but we have enjoyed excellent returns on our investment over the last 5 years.  There are also some very attractive commercial investment oppertunities we are considering right now with some lucrative cash on cash returns.  One in particular that we have on our analysis right now would offer 22.32% cas on cash return and and a 39.25% total retun on invested cash.

We should also clarify that the natural gas hasn't completely dissapeared here, the market just isn't there right now.  Thanks again for the questions and comments.  Please let us know if you have any more questions.  Thanks!

 

 

Jun 03, 2010 06:48 AM #4
Rainer
59,226
Chris Wechner
CW Health Inc - Waterford, MI

Thank you very much for your thorough answers.  That plus-20% return should attract a ton of investors.

You mention that you live in a Boom & Bust town.  How do investors protect themselves against the bust--commerical or residential?

Jun 03, 2010 11:41 PM #5
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