Market update at glance June 30th 2013

Market update at glance

June 30^th 2013

The first half of the year is over and if it were a football game the residential market in Billings would be leading 21 to zero. The increase in in unit sales is up 9% year over year, the decrease in market time is 20% year over year, the absorption rate shows a decrease of 6% , the increase in pending sales is a positive  24%, the market velocity is a decreasing increase year over year in closed sales, this is a positive  within the market. The reason for its positive effect is the increase in unit sales becomes a sustainable momentum and not a setup for a bad stumble. The other positive from the market behaving in this manner is that the movement of prices up becomes a more solid base to build appreciation on. The market has experienced a 6.47% approximate pricing movement since the end of 2012and about 8% year over year (one caution 2012 just started to move about this time of year in pricing, so that number should moderate back to the year over year figure as we go through the final 6 months of the year), both sellers and buyers are gaining confidence in the economy of Yellowstone County the price gains become solid. The latest available figures  of May  2013 there 1648 more people working in Yellowstone County than in May of 2012 and 4870 more working than in May of 201 01,unemployment in Yellowstone county is now 3.7% compared to 5.4% State Wide, 4.8% in Missoula, and 7.0% in the Flathead. Pricing trends continue along a positive trend and even with interest rates lower than last year, total monthly payment has risen above the year before, for the first time in five years, yet still has a long way to go to match the pitit in 2007 of the average sales price home of $1,602 compared to today’s average sales price home PITI of $1,411. The other amazing factor is, to purchase the median price home your payment in March 2013 was $40 a month cheaper than renting the median priced home for rent, in June it is now $47 more renting the median priced rental in Yellowstone County. Of course with the positives in the resale market new construction is experiencing a another stellar year and has seen a 55% year over year increase in single family permits which puts new construction just 12 permits shy of the record year of 2007.  I hope you find the information both useful and enlightening, if you have any questions about either buying, selling or the market in general do not hesitate to call or email