makert stats through febuary 2011

THE FIRST TWO MONTHS OF THE NEW YEAR ARE GONE. TIME TO GIVE OUR LOCAL MARKET JUST A TAD MORE THOUGHT. GONE ARE THE TAX CREDITS FOR EVERYONE, GONE IS THE 4% 30 YEAR MORTGAGE OF LAST SUMMER. MY COMMENT ON MORTGAGE RATES 4.75% TO 5.25% FOR A 30 YEAR MORTGAGE, MAKE IT INCOMPREHENSIBLE THAT ANYONE WOULD HESITATE TO BUY BECAUSE OF RATE, YET THAT CONVERSATION HAS TAKEN PLACE MANY TIMES.         SO NOW THE QUESTION BECOMES STRENGTH OR WEAKNESS, WHICH TYPE OF MARKET DO WE HAVE. DEPENDS ON WHICH QUESTIONS YOU ASK YOURSELF. ON THE FACE OF INVENTORY BEING DOWN YOU MIGHT SAY STRENGTH, YET CLOSED AND PENDING SALES ARE DOWN YOU SAY. SO LETS LOOK AT SALES PRICE BOTH AVERAGE AND MEDIAN SHOW THEY ARE UP YOU SAY , YET WHEN YOU LOOK AT THE COST BY SIZE OF HOME YOU BUY WITH MONEY YOUR COST IS DOWN. BOTTOM LINE WHAT ALL THESE CONFLICTING  INFORMATION SAYS TO ME, WE AR A MARKET IN TRANSITION AND UNFORTUNATELY FOR MY FRIENDS IN BUILDING BUSINESS THEIR CUSTOMERS ARE GOING TO SCARCE THIS YEAR AND REMAIN SO UNTIL A STRONG BUILDING OF EMPLOYMENT IN YELLOWSTONE COUNTY, MEANING NEW CONSTRUCTION WILL REMAIN WEAK.IT CAN NOT COMPETE WITH THE RESALE MARKET FOR SIZE AND FINISHED AMENITIES, IT DOES OFFER THAT NEW HOME SMELL BUT THE CUSTOMER WILL REALLY NEED TO WANT NEW FOR THE PRICE DIFFERENTIAL. THE RESALE MARKET WILL CHUG ALONG PEOPLE ARE ALWAYS MOVING AROUND, FAMILIES GROW, FAMILIES SHRINK, PEOPLE MOVE INTO TOWN PEOPLE MOVE OUT OF TOWN.  BELOW THE MARKET UPDATE AT GLANCE ARE SEVERAL PERTINENT GRAPHS FOR MARKET PERFORMANCE FOR COMPARISONS.