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New Home Construction Rising

by Tim Hart

I read an interesting article today on new construction for July. More and more people are putting their faith in the housing market. Here’s what I took out of it.

 

New home construction continued to rise in July which should continue to boost the economy in the coming months. Housing start ups climbed 16% last month to an annual rate of 1.093 million units, showing a renewed faith in the housing market. July levels hit the highest level of construction since November. Construction on new apartments has seen the greatest increase in the US. Total home construction rose 22% all the way up through July, and building permit applications.

 

http://realestate.msn.com/blogs/post--us-housing-starts-up-sharply-in-july

Residential building permits and rising utility connections continue to suggest rapid growth in Bozeman. From 2008 until 2013, Bozeman dealt with around 200 residential building permits per year. In 2014, the City of Bozeman Department of Community Development expects more than 1,000 permits to be given. Other than last year, the last time residential building permits reached more than 1,000 permitted buildings in a year was 2005.

Bozeman is also beating other Montana cities for new electric and gas connections. As of early June, Bozeman had 375 new electronic connections and 175 new gas connections. Billings paled in comparison, despite having the second highest number of new electronic connections with 100. To put the growth in perspective, compared to a high growth year in 2013, Bozeman has still doubled its average new electric connections per year in 2014.

 

Last month, we focused on activity in Gallatin County for single-family homes.   This month, we will highlight condos and townhomes.  Activity is also brisk in the condo/townhome segment.

 

Here are a few stats for all of Gallatin County for condos and townhomes:

  • Units increased year over year from 2012 to 2013 by 24%  (532 sold in 2012, 611 sold in 2013)
  • Dollar volume increased by 43% from $101,000,000+ in 2012 to $144,000,000+ in 2013
  • Average sale price also increased from $190,000 to $236,500+
  • For 2014 thru 5/31/2014
    • Sold volume already at $73,000,000 and 249 units
    • 108 additional units ($30,000,000) under contract

Summary – based on current volume and the fact the 2014 statistics don’t even reflect the sizzling hot summer market, 2014 is shaping up to surpass 2013 with ease.

The E-C-O-N-O-M-Y: How We Should Feel About It

by Tim Hart

For too long, the state of the economy has been measured with one index or another telling us how we should feel about it.  

The Empire State Manufacturing Index, The Producer Price Index, The retail sales report, Housing Starts, The Beige Book, The Dow and countless others.  Yes, all of these types of reports can help us to face facts and make decisions based on some of those economic conditions, but they can not be the "be all, end all" for any of us.  The effect is similar to stepping on the scale.  When we take the effort to step on the scale to weigh-in regularly: it is much less of a surprise.  We can recognize trends and make adjustments to our lifestyle to achieve an ideal weight.  When we check in on the economy through the numerous reports available, it can be helpful as well.  

Unfortunately, drama sells news so drama is reported.  Too much of what was reported to us for so long generated so much fear that we have been conditioned to flinch with every bit of economic news that is reported.  Some shiny spots this week: The consumer confidence report.  This report is created through interviews of everyone from people on the street, business owners and even examines factory orders and interviews purchasing managers.  It is then assigned a number.  That number is higher now than it has been for a very long time.  Also, the number of foreclosures appears to be slowing down.  Banks will spend several years processing all of the mess of foreclosures hitting the market...but there may just be an end in sight.  In this, the election year: we hope to see the big media machine reporting on shreds of positive news.  Hopefully they do.  

-- 
Chad Schauers
Montana Mortgage Lender, Bozeman, Montana

NMLS# 583046

 

Tim Hart

 

 

BIG Improvements Seen in 23 Housing Markets

by Brittney Dahlberg

BIG Improvements Seen in 23 Housing Markets 

  1. Alexandria, La.
  2. Amarillo, Texas
  3. Anchorage, Alaska
  4. Bismarck, N.D.
  5. Casper, Wyo.
  6. Fairbanks, Ark.
  7. Fayetteville, N.C.
  8. Houma, La.
  9. Iowa City, Iowa
  10. Jonesboro, Ark.
  11. Kankakee, Ill.
  12. McAllen, Texas
  13. Midland, Texas
  14. New Orleans, La.
  15. Odessa, Texas
  16. Pine Bluff, Ark.
  17. Pittsburgh, Pa.
  18. Sherman, Texas
  19. Sumter, S.C.
  20. Waco, Texas
  21. Waterloo, Iowa
  22. Wichita Falls, Texas
  23. Winston-Salem, N.C. 

The above 23 locations have been dubbed as ‘improving’ this October due to NAHB’s index!

Last month, half this number was qualified as improving by the National Association of Home Builders/First American Improving Markets Index. An improving market is qualified as a growth in housing permits, employment, and housing prices in the last six for six consecutive months.

"Both the number and geographic diversity of improving housing markets expanded this month, with Iowa, Illinois, and South Carolina all newly represented by one entry or more on the list," Bob Nielsen, NAHB chairman, said in a statement. "This is further evidence that, despite the tough conditions that persist in many cities, pockets of improvement are emerging in local housing markets across the country."

http://realtormag.realtor.org/daily-news/2011/10/07/23-housing-markets-show-big-improvement

Tim Hart

At Home In Bozeman--Tim Hart

GOOD NEWS IN THE HOUSING MARKET!

by Brittney Dahlberg

 

“The combined delinquency rate on mortgages held by major banks dropped to 6.68% in the second quarter, the lowest level since the third quarter of 2009", according to Federal Deposit Insurance Corp.data.

 

 

For the first time in two years, the notorious bank failures REVERSED their trends that have been seen throughout this economic hard time! The FDIC (Federal Deposit Insurance Corporation) who insures deposits at 7,513 banks reported that in the second quarter of this year the FDIC’s Deposit Insurance Fund was POSITIVE.

What this means to the housing realm? Overall economic trends impact your mortgage. The dollar amount of delinquent loans between 30 days and 90 days dropped for the 7th quarter consecutively. Note: this is the absolute lowest it has been since 2007. Even if focus is placed on this quarter alone, there has been a 10% reduction in delinquencies since the prior quarter. 

It must not be forgotten that the summation of delinquencies is still $172 billion. We are not healed, but we are healing.  

http://www.linkedin.com/news?actionBar=&articleID=736016823&ids=0Scj8Ne3cScPsIdPoNdPoPdzcTb3cOe3oNc3oPdOMPdjcOd3sRcPsIdP0PczgUdjcT&aag=true&freq=weekly&trk=eml-tod-b-ttle-44&ut=2e9pjaeWraAAU1   

 

 

Displaying blog entries 1-6 of 6

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