MARKET UPDATE AT GLANCE 2012

MARKET UPDATE AT GLANCE JUNE 30^TH 2012

A YEAR HALF OVER, SO THE QUESTION BECOMES,

IS THE GLASS HALF FULL OR HALF EMPTY IN YELLOWSTONE COUNTY?

FIRST LETS START BY LOOKING AT THE POSITIVES--- CLOSED SALES UP 19%-- POSITIVE, PENDING SALES UP 37%-- POSITIVE, INVENTORY DOWN 34%-- POSITIVE, PRICING UP 2% Y O Y WHEN COMPARING SIZE AND PRICE-- POSITIVE, TIME IT TAKES TO RECEIVE AN OFFER ON PROPERTIES THAT SELL DOWN BY 15%-- POSITIVE, ABSORPTION RATE OF ALL THE INVENTORY 141 DAYS (DOWN FROM 259 LAST JULY)-- POSITIVE, NUMBER OF SINGLE FAMILY PERMITS ISSUED UP 72%-- POSITIVE, NUMBER RENTALS AVAILABLE DOWN 11%-- POSITIVE, FREDDIE MAC 30 YEAR MORTGAGE RATES  3.68% (DOWN FROM 4.74%) POSITIVE

I WOULD  VENTURE THE GLASS IS MORE THAN HALF FULL AND THE RESIDENTIAL REAL ESTATE MARKET IN YELLOWSTONE COUNTY HAS HEADED IN A POSITIVE DIRECTION (TONGUE IN CHEEK). THE ADDITIONAL COMMENT I WOULD MAKE IS WHEN THE MARKET FIRST PULLS IT’S SELF IN POSITIVE DIRECTION THE GAINS ARE USUALLY OUTSIZED, WHICH ARE  SEEING IN THE FIRST HALF OF 2012. I WOULD SUGGEST THE NUMBERS WILL MODERATE A LITTLE, YET REMAIN IN THE DEFINITELY POSITIVE CAMP FOR 2012. ADDITIONALLY ONCE A MARKET HEADS IN POSITIVE DIRECTION IT WILL MOVE IN THAT GENERAL DIRECTION UNTIL SOME LARGE OUTSIDE INFLUENCE CHANGES ITS DIRECTION. THE LARGEST DAMPING INFLUENCES TO OUTSIZE GAINS IN PRICING ARE, THE APPRAISAL PROCESS, BUYERS NATURAL CAUTION, AND THE EVENTS STILL OCCURRING NATIONAL IN THE HOUSING MARKET.