market update at glance febyary 2012

By
Industry Observer with Howard Sumner Consulting

HERE WE ARE ROARING THROUGH 2012. TWO MONTHS GONE AND TWO MONTHS OF WINTER WITH JUST SOME COOL WEATHER, NOTHING LIKE THE LAST TWO WINTERS IN TERMS OF SNOW.  INTEREST RATES ABOUT AT 3.89% FOR A 30 YEAR FIXED RATE MORTGAGE, 20% BELOW LAST YEAR AT THIS TIME; THOSE TWO THINGS COMBINED ARE SHOWING UP IN THE HOME SALES IN YELLOWSTONE COUNTY. CLOSED SALES AT A NICE CLIP ABOVE 2011, IN THE FIRST TWO MONTHS, ALTHOUGH I WOULD CONSIDER IT A BIT OF MISS MATCH OF A COMPARISON WITH THE FACTORS MENTIONED ABOVE. THE REAL BRIGHT SPOT IS THE DECREASE IN INVENTORY THAT ALONE WILL GET THE MARKET BACK TO BALANCE FASTER THAN INCREASE SALES. THE BALANCE OF THE INVENTORY DROP MEANS SELLERS WERE DISAPPOINTED WITH WHAT THE MARKET WOULD ALLOW FOR A SALES PRICE AND HAVE MOVED TO THE SIDELINES UNTIL PRICING PROSPECTS LOOK BRIGHTER. WHEN YOU LOOK AT THE SINGLE FAMILY BUILDING PERMITS NUMBERS YOU CAN SEE THE EFFECT OF BOTH WEATHER AND INTEREST RATE ENVIRONMENT CREATING POSITIVE MOMENTUM, HOPEFULLY FOR NEW HOME CONSTRUCTION AND RESALE’S THE INCREASED ACTIVITY IS INCREASED INTEREST IN THE MARKET AND NOT ALL ATTRIBUTABLE TO THE WEATHER PULLING SALES FORWARD IN THE YEAR. THE RENTAL MARKET CONTINUES TO  MOVE TOWARDS THE OWNERS SIDE WITH DECREASING INVENTORY MEANING PRICE INCREASES WILL BECOMING FOR RENTERS TOWARD MID SUMMER TO EARLY FALL.  NEGOTIATIONS STILL ARE PRETTY TESTY BETWEEN BUYER AND SELLER, WHICH I EXPECTED, YET THE BUYERS HAND STRENGTH WILL WEAKEN WITH THE DECREASE IN INVENTORY AND INCREASE IN SALES AS WE PROGRESS THROUGH THE YEAR.

Market update at glance   Year  Percentage Increase 
Yellowstone County 2/29/2012     2011 2012 or -Decrease
           
Residential  Closed Sales Units   158 196   24%
           
Residential  Pending Sales Units   218 231   6%
           
Residential  Active Property For Sale 826 586   -29%
           
Average sales price Single family Home $207,597 $210,025   1%
           
Average Square feet Single family Home 2448 2440   0%
           
Median sales price Single family Home  $185,000 $191,000   3%
           
Median Square feet Single family Home  2322 2374   2%
           
Average Days on Market Till Offer Received        
Single Family Home    87 85   -2%
           
Absorption rate - TIME IN DAYS          
Time it would take for all existing     182    
properties to sell with no new inventory         
coming into the market place - residential         
           
SINGLE FAMILY PERMITS MONTH  11 24   118%
           
SINGLE FAMILY PERMITS YEAR  17 36   112%
           
Average # Rentals Advertised Sundays 335 325   -3%
           
Average Asking Price  Rental Home $1,061 $986   -7%
           
Average Asking Price Rental Apartment $657 $655   0%

 

 

 

 

 

 

 

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