Market update at a Glance Through Marhc 31st 2013

All roads lead to positive trends in the Single family real estate market. Yellowstone County has now has had year over year increase in number of sales since February 2012, 13 months in a row. Every category of measurement shows improvement. So what drives the positive trends, employment growth, population growth, and the Federal Reserve’s unwavering commitment to push and keep mortgage rates low. A quick comparison on the power of that policy, at current interest rates (3.57%) the approximate monthly payment with taxes and insurance at the average sales price home is just $1,286 per month, use the average interest rate for the last five years (4.57%) and that payment jumps to $1,435 per month and now for the shocker use the average interest rate since 1971, 42 years of history, (8.64%) and the payment jumps to $2,188. The question that comes to mind which leg of the positive drivers will most probably wavier first and how much effect may have if the other two factors continue with positive growth and how much growth in the factors do we need to override the faltering driver. As always fascinating to watch the market and its movement whether positive or negative