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Home Prices and Growth: What’s Going On?

by Hart Real Estate Solutions

What Does Growth Look Like Around the U.S.?

It comes as no surprise to many of us that owning a home can be an expensive venture. Factor in HOA fees, interior appliances/materials, miscellaneous maintenance costs and everything in between, and it’s easy to see why being a homeowner can appear to be daunting to some.

Although home prices grew 5.6% last year, this is only determined when comparing dollars to dollars. If this statistic is adjusted for inflation, this increase is still actually 15% below the high that occurred in 2006. Of the country’s 100 largest metro areas, only 41 grew to new peaks, even though 97 of these 100 metro areas did see overall home price growth. Overall, housing markets on both the West and East coasts have experienced inflation-adjusted home price increases of more than 40% in the last 16 years, while markets in the Midwest and South have generally experienced decreases.

However, growth has not been the same across all income levels. After Harvard researchers collected data for more than 9,000 ZIP codes across the country, most home prices in all income brackets were LOWER than their pre-2006 peaks. Here’s the breakdown:

  • Low-income areas: 13.7% lower
  • Moderate-income areas: 6.5% lower
  • High-income areas: 3.3% lower

Because of the post-recession change in home prices, many homeowners were able to emerge from underwater, a term indicating that the value of a home is below or under its mortgage amount. In 2011, the number of underwater homeowners topped out at 12.1 million; by the end of 2016, that number was down to 3.2 million.

                   

Source: PalmBeachPost.com

What About Growth in and Around Bozeman?

Bozeman remains one of the fastest growing small towns in the country, with a population growth rate of 4.6%. Home prices across the state currently exceed pre-2006 levels by 10%.

When comparing median sales prices between Bozeman, Belgrade and other Bozeman areas, home prices are still steadily on the rise in all 3 areas.

 

Median Sales Prices (2011-2017)

This data was pulled Big Sky Country MLS for 2017. While we attempt to provide reliable, useful information, we cannot guarantee that the information is accurate, current or suitable for any particular purpose. Estimates are subject to change without notice.

 

Although median sales prices are continually rising, the good news is that the median sale price is often lower than the median original asking price: 

This data was pulled Big Sky Country MLS for 2017. While we attempt to provide reliable, useful information, we cannot guarantee that the information is accurate, current or suitable for any particular purpose. Estimates are subject to change without notice.

 

As for the country as a whole, Freddie Mac predicts an overall home price increase of 4.9% in 2018. While that may seem like quite a jump, this prediction is still lower than the 6.3% growth we’ve seen so far this year.  Much like the prediction for 2017, 2018’s prediction also suggests continued economic growth of around 2%, steady job gains and relatively low mortgage rates. 


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Gallatin County Leads Montana's Economy

Red Flags in the Real Estate Market

To Buy Before or After Selling Your Home?

by Hart Real Estate Solutions

One of the biggest frustrations in the real estate market is timing. Having another property lined-up after selling a home is not always easy. The ideal scenario for sellers is to close on their current home just as they purchase a new one, allowing a seamless move.

Unfortunately, as in most markets, it’s difficult to accurately predict timing between sale and purchase, causing frustrating conflicts in the transition process. The time-frame for getting a home under contract can range anywhere from days (not uncommon in here in Bozeman, Montana) to months or even years (typically for higher priced homes). This is why hiring a Realtor® is worth the investment to gain market insights about local inventory, months of supply, and other market conditions not entirely available to the public.        

In short, there’s no concrete answer about whether it’s better to buy before or after selling your current home. There are pros and cons to either decision (or outcome).

To Buy First?

Pros

If you have the financing available, buying a new home first may be a viable option. Having a home lined-up in advance has the obvious benefit of relieving pressure on your home search. This is typically the biggest advantage of buying first, because buying a home is no small deal, so you really shouldn’t rush and buy under pressure.

Buying first also allows you to move all your stuff and get your home just right before you move in, and again, without having to rush.

Another benefit of buying first is that, although you may end up having an extra mortgage payment, you won’t have to find a place to rent while searching for a new home. And because most renting agreements require a year lease, renting may not be the best option for you.

Cons

However, there exists the risk of not being able to sell your current home, or at least at the price or time-frame you were hoping for, adding the cost of a second mortgage.

Another major disappointment that you may face when buying first is losing out on your dream home. If you don’t have the funding to purchase a new home outright (as most people don’t), your offer will have to be contingent upon sale and transfer of title of your current home. Depending on how your contract is negotiated, a non-contingent offer may force your hand to remove a contingency in typically a 48 to 72-hour period, or terminate

To Sell First?

Pros

The main advantage of selling first is the strong position it puts you in as a buyer to negotiate, without being tied down by sale contingency terms. Offers tied to contingent-upon-sale contracts can significantly lower your negotiating power, and in a seller’s market, are often rejected.

Another great benefit of selling first is that it will give you the cash you may need for your new home.

Cons

On the other hand, selling your home before securing a new one will obviously entail the risk of not having anywhere to live in the meantime. When selling first, you may have to rent, stay at a friend’s house and pay for storage, or do whatever means necessary to find shelter in your transition between homes.

One way to avoid this, however, is to negotiate “rent-back” terms with the buyer of your current home, allowing some additional time for your home search.    

Why Hire a Real Estate Agent?

As discussed already, Realtors® have (or should have) a firm grip on local market conditions. Having experience and exclusive access to local market statistics, a Realtor® can provide a closer estimate of how long it should take for a home to sell in your neighborhood, and negotiate terms and conditions in your best interest. It’s the job of a real estate agent to be your trusted guide and ensure that the whole process, from marketing to writing a contract, flows smoothly.

With that, I have one last important tip: make sure to properly interview prospective real estate agents before entering a contract. Not all Realtors® have the same experience and wisdom in guiding you through the transaction process. Find an agent that truly cares about their clients and will go above and beyond expectations to serve you. Make sure to read through reviews, ask your friends and neighbors, and do some digging to find the right agent for you.

Follow us on Facebook, or sign up for our monthly newsletter to receive exclusive information about the housing market, real estate tips and advice, and local news and development in the Bozeman, Montana area.


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How Homebuyers Win in a Seller's Market

by Hart Real Estate Solutions

With limited inventory, and no clear signs that new construction will be catching up any time soon, homebuyers are forced to face a seller’s market. In a seller’s market, competition among buyers is strong, and the pressure is on to place an offer before someone else does. However, there are a few key steps you can take for a competitive edge in a seller’s market.

Know Your Local Market. It’s crucial to know local market conditions, more than ever in a seller’s market. You should get a firm grip on housing prices, inventory levels, information about different neighborhoods, development plans around town, and as much information as you can find (Sign up for our newsletter and, once a month, we’ll send you market reports for the Bozeman, Montana area). Realtors® are also a valuable resource for exclusive insights about market conditions, and can serve as your trusted guides in the real estate market.

Get Pre-approved for a Mortgage. This is huge, but surprisingly ignored by most buyers. From what we’ve experienced as Realtors®, most buyers will start shopping around with an estimate from an online mortgage calculator. Not to be the bearer of bad news, but online mortgage calculators can greatly exaggerate what you can truly afford.

If you’re serious about buying, don’t rely on what you find online. Contact a loan officer and get pre-qualified before you start shopping around. This has several major advantages, including:

#1 Saving Time. It would be a big disappointment if you come across a home that you absolutely love, but is sold before you’re ready to make an offer. Having your finances in order will streamline the process, and allow you to place an offer before other buyers.

#2 Signals to Sellers That You’re Serious. Any offer that isn’t backed by a pre-approved mortgage will likely be ignored. Having proof of financing in-hand shows sellers that your offer is serious, giving you the advantage over other buyers that skipped this pre-emptive step.

#3 Knowing Your Budget. This may be stating the obvious, but it’s important to get an accurate estimate of what you can afford—buying a home is no small deal! A pre-approval from a loan officer is the really the only way to get an accurate estimate, not online mortgage calculators.

Start Shopping Early. While it may be a seller’s market, it can be seasonal. The winter months are typically much slower than the summer months, so buyers may find better leverage and negotiating power earlier in the year. The downside, however, is that slower periods typically means less houses on the market, so you’ll have less to choose from.

Act Fast. In our market, we’ve personally seen listings sell within just hours after being active. This is why the previous tips are so crucial—you need to be ready. When you see a house that you love, and absolutely must have, don’t expect the seller to wait for you. Be prepared to drop everything you’re doing and go see the property, and don’t spend too much making your decision. While you should never buy on impulse, you also need to be diligent if you plan on scoring your dream home in a seller’s market.


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Montana May Soon Be the New Silicon Valley

Montana's Economy Leads The Nation

by Hart Real Estate Solutions

How's Montana Real Estate Market? 

As we recover from the housing crisis, it's evident that Montana performed exceptionally well through the recession as compared to the rest of the country. National home prices finally broke-even with the pre-recession peak, but Montana already reached that milestone back in 2014. Montana's real estate prices are now about 10% above where they were before the housing bust.


 

Housing Price Growth.png


Before the recession, Montana's real estate prices were just under par with national averages. But when the housing bust hit, Montana had better resilience to price deflation than rest of the country. The housing bust wasn't nearly as harsh in Montana as other states. Since 2008, housing prices in Montana have stayed well above national averages.

Bozeman, in particular, had the most pronounced price growth of the state. Median sales price of single-family homes in Bozeman are now exceeding $350,000, higher than Montana's most populous cities.

How's Montana's Job Market?

The number of jobs in Montana are also growing at a considerable rate, with our manufacturing industry outperforming the national rate since 2010. From 2010 to 2012, Montana's manufacturing employment grew at an annual rate of 4% to 5%, while the nation's rate climbed by only 2% to 3%. 

Manufacturing Employment .pngEntrepreneurship in Montana

Much of the job growth can be attributed to a number of new establishments, rather than the growth of existing ones. Several of the largest contributors to Montana's rapid job growth through 2010 to 2015 were from fabricated metal products, beverage, and computer/electronic manufacturing. 

# of Establishments in Manufacturing Industry.png
Another achievement worth noting for Montana is the $4.6 billion Air Force contract won by S&K Technologies Inc., an enterprise headquartered on the Flathead Reservation in northwest Montana. While the enterprise has multiple offices in the U.S. and Saudi Arabia, S&K returned more than $25 million in dividends to the Confederated Salish and Kootenai Tribes (CSKT). As shareholders of the company, the success of S&K makes a significant impact on more than 7,000 members of the Tribes.

The Bureau of Business and Economic Research at the University of Montana projected in a 2016 report that the high-tech and manufacturing companies would grow seven-times faster than Montana's overall economy. These sectors are expected to pay average annual salaries of $57,000—more than double the median wage in Montana.


Montana's Economic Outlook

Overall, Montana's economic outlook is looking robust. Housing prices are climbing, high-tech companies are growing, and more high-paying jobs are becoming available. Montana's real estate market and the high-tech sector will be two things to keep track of in 2017.


See More:

Gallatin County Leads Montana's Economy

 

Bozeman Airport Expands For Explosive Traffic Growth

 

Mid-Rise Buildings To Doom Bozeman's Small-Town Charm?

 

Bozeman Airport Expands for Explosive Traffic Growth

by Hart Real Estate Solutions

As you may have notice, the Bozeman area has been growing exponentially with each passing year, and the local airport is certainly feeling it. Our Bozeman Yellowstone International Airport just broke its own traffic records for the seventh year in a row. While the U.S Census Bureau estimated there was only 100,000 residents living in Gallatin County in 2015, the airport handled a staggering 1.1 million passengers the following year. That’s 10 times more passengers moving through the airport than there is people living in our area! 

To accommodate for the growing traffic, the airport is working on adding another runway and considering to add some new gates. American Airlines also just announced that starting this spring, they will be making non-stop daily, seasonal flights to and from Bozeman and Dallas-Fort Worth. The airline will have a summer service running from June 2 to October, and a winter service running from December 15 to April.

With Bozeman being a college town, and Big Sky and The Yellowstone National Park being major tourist attractions, it’s no surprise that the airport’s been so busy. College students fly home during the holidays, Yellowstone National Park has tourists flying in from all over the world in summer, and our world-class ski resorts attract skiers in the winter. These local attractions keep the airport busy all year long.

Good business for the airport is also good business for our community. With an expanding airport, it will draw in more potential customers for our local businesses, add jobs and revenue to our community, and possibly lower flight costs from Bozeman to global destinations.


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Top Home Improvement Projects That Sell

by Hart Real Estate Solutions

You are thinking about buying an older house, and you know would take a lot of work to fix it up the way you want, but it just has that rustic look you can’t turn away from. However, fixer-uppers either go one of two ways, save you a ton of money, or throw you down a financial rabbit hole—It all depends on where you put your money.

Whether you’re an experienced real estate investor flipping houses, or just upgrading the home for your own sake, it’s important to keep your local real estate market in mind for what sells and what doesn’t. If you’re in a neighborhood of houses with certain features that buyers want, but you don’t have, your home will likely be stuck on the market until you make some changes. Unless you drop the price of your home to accommodate for the cost of a buyer installing these features, which is typically over estimated, you may need to consider some of these home improvement projects.

Here are the top home improvement projects with the highest return on investment in real estate.

The Curb Appeal

The first impression of your home is essential. It is typical for anxious buyers to drive by listed homes to take a quick look from the curb before calling for a showing. This curb appeal is what gets buyers through the door.


1. Remove overgrown bushes and trees. Clear out the front yard for a clear, unobstructed view of the front door and windows. Add some colorful, inexpensive flowers to brighten up the yard and make it feel more inviting.

2. Consider repainting the exterior if you have wood siding. Repainting is typically a worth-while investment that would add the most value for your dollar. Neutral colors, such as warm beige, are what sell. If you’re lucky enough to have stucco, sometimes all it takes is a good power wash to make it look like new again.

3. Paint the front door and inviting color and the house trim bright white. This will give your home a fresh new look.


The Kitchen

Once buyers make it past your yard, the very next thing they typically look at is the kitchen. Buyers can fall in love with every other part of your home, but if the kitchen is under par, they’ll rethink how they feel about the home and move-on with their search.

1. Think about the design. Most new homes have open floor plans, and has become somewhat standard in real estate. If the kitchen is too small or feels a bit cramped, can it be as simple as taking down a wall to open it up to the family room? Removing a wall isn’t as big of an undertaking as you might think, and it wouldn’t cost a lot of money compared to other projects.


2. Your next priority should be the countertops. This is not the place to go cheap. Buyers love, and almost demand, granite countertops. There is a wide range of colors to choose from, but be sure to pick a color that contrasts with the cabinets.

3. Speaking of cabinets, don’t just jump to the conclusion that they need to be replaced. You could save thousands to simply reface or refinish them if they’re in good shape, while still transforming the look of the kitchen. If there’s no hope in the cabinets and need to be replaced, consider buying lower to mid-grade cabinets and put the money you saved toward the granite countertops. A nice countertop that compliments the cabinets is a major selling point.

4. Last, but not least, is the floors. Cheap vinyl flooring is a major turn off for buyers and if that is what you have, it must be replaced before even thinking about selling your home. Your new flooring should be a neutral colored hardwood or stone-like tile. Whatever you choose, NEVER install a light-colored floor. Light colors highlight any dirt, stains, or scratches and make them stand out like a sore thumb. 


The Bathrooms

The bathrooms are another area that buyers are known to critique. Buyers just want bathrooms to be bright, clean, and modern. It doesn’t take a lot to turn a bathroom into a selling point for your investment property either. 


1. The biggest selling point of your bathroom is the enclosure around the shower or bathtub. Dollars spent on these walls will typically generate the highest return on investment. Buyers will quickly forget how great your home is if they walk into a bathroom with ugly tile, and especially vinyl panels. Again, going for the modern look, replace the outdated material with a neutral colored tile, like stone or travertine.

2. This is the next thing buyers look at when they enter the bathroom is the sink and vanity. It doesn’t cost too much to transform your bathroom with a new sink and vanity, so it’s an easy place to add value to your home. Keep in mind your local market when you pick out the colors and models though. If the local real estate market is full of single, first-time homebuyers like the Bozeman area, something modern or trendy like a glass or copper sink would be the best bet.

3. If the toilet looks old or outdated, replace it. Don’t bother scrubbing it down or buying a new toilet seat, just buy a new toilet. New toilets are worth the investment and simply sells better.


The Roof

The roof is particularly an area of concern in neighborhoods with a history of heavy hailstorms, such as Bozeman, Montana. Roof damage can lead to major mold problems down the road, and buyers would almost never even consider buying a house with a roof in bad condition.

1. The typical life expectancy of a roof ranges anywhere from 15 to 30 years. If your roof is reaching the end of its run, you should have inspector look at it for any needed repairs.

2. If an inspector approves the condition of the roof, or you already had it repaired by a roofing expert (it’s essential to hire someone with experience), keep record of the receipts and documents to give peace of mind to the buyer. 

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Top 5 Home Staging Tips

by Hart Real Estate Solutions

If done properly, home staging can make the home look much more appealing to buyers in photos and showings. Other than just the obvious tasks of cleaning, which is the first thing you should do, there are several essential steps in staging a home to sell.

 

 

#1 Make Obvious Purpose for The Space

An empty room makes it hard for buyers to imagine what they can use an empty space for. Put a desk in the office space, a T.V. in the family room, a chair with a reading lamp in the reading space, and twin beds in children’s bedrooms.

 

 

#2 Position “Floating” Furniture

It is a common mistake for sellers to think that a room looks larger by pushing all the furniture against the walls. In reality, space between furniture and walls actually opens the room up and makes it seem larger. Push your furniture away from the walls and position for conversation groups and easy traffic flow. 

 

 

#3 Guide Buyers’ Attention with Color Contrasts

By clever use of colors, you can control your buyer’s gaze. Red and Yellow attract attention, while blues and greens tend to be ignored. Have a beautiful kitchen? Place a bowl of yellow bananas and red apples in the middle of it. Have a boring corner of your home? Place a green potted plant there.

 

 

#4 Use Directed Lighting

To highlight the best features of your home, such as a beautiful fireplace, kitchen, or book case, install some directed lighting over them.

 

 

#5 Use “Warm” Lights

The kind of light bulb you use makes a big difference in the look and feel of your home. Soft lighting enhances the “warm” colors of you home, which influences a healthier, uplifted attitude—just what you want in a buyer. Harsh lighting will make you skin look pale, and nobody wants that. Use LED 2700-3000 K light bulbs for the best lighting.


See Related Topics:

5 Tips For A Winter Market

Top Tips For Selling Your Home

5 Important Home Maintenance Tips

Get Energy Audit To Improve Home Efficiency

 

 

Valuable Lessons for First-Time Homebuyers

by Hart Real Estate Solutions

Buying a home can be a particularly stressful, and time-consuming process. Buyers may learn through experience some valuable lessons for buying a home. Here are 5 useful tips for first-time homebuyers to consider when entering the real estate market.

#1 Get your documents in order

To apply for a home mortgage, you will need income and tax documents. Typically, lenders will ask you for 2 recent pay stubs, 2 previous years’ W-2s, tax returns, and the past 2 months of bank statements. Having these documents in hand will save you a lot of time when buying a home.

#2 Watch the market

Stay up-to-date with the housing market on both a national and local level. Just like the stock market, timing is key in the real estate market. If inventory is decreasing, it may be best to buy a home quickly before more buyers enter the market and spark a bidding war. If there are clear signs that the market is unstable in the area, you may want to wait or look for a home in a different city.

#3 See if the HOA contract allows renting

It is common for homeowners to have the long-term goal of renting out the property when they decide to move. It can be a big disappointment to find out after you buy a home that your neighborhood does not permit rentals. Make sure to check the homeowner’s association contract before buying a home if this is your goal. Here in Bozeman, for example, the city has a temporary ban on short-term rental permits in its historic neighborhoods

#4 Read the ENTIRE contract

Buying a home will be one of the most important, and obviously expensive, purchase in your life, so don’t overlook or ignore the terms of your contract. If there is anything you don’t understand, ask your mortgage broker and your real estate agent to clearly explain the terms to you.

#5 Meet the neighbors

You might forget that you’re not just buying the house, you’re buying the neighbors too. Have you watched the movie Neighbors? Don’t end up like Mac (Seth Rogen) and Kelly (Rose Byrne) and wait until after buying a home to find out that your next-door neighbors are a bunch of college kids who throw wild parties every night.

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5 Steps Toward Buying A Home

by Hart Real Estate Solutions

 

Buying a home can be a particularly stressful, painstaking process, especially for first-time home buyers. To prepare you for the real estate market, follow these 5 steps toward buying a home.

#1 Save Years In Advance

Down payment requirements depend on the loan program, ranging anywhere from 3% to 20% of the home value. Zero down payment loans are also available from the USDA or VA for those who qualify. Most buyers should expect to put a large sum of money down to buy a home, so it’s important to plan on saving years in advance. 

In addition to the down payment, is the closing costs. While it depends on the state, closing costs can add several thousand dollars on the cost of the sale. Some sellers may agree to cover the closing costs for the buy, so be sure to consult with a real estate agent to try to work that into the contract.

It’s also important to save for additional cash reserves after buying a home. Not only is it a requirement by some lenders, but is also financially safer to not put all your eggs in one basket.

#2 Estimate What You Can Afford

The next step is to determine how much you can afford putting into a home. The size of your approved loan will be determined by your income, the down payment you saved for, assets, and debts, liabilities, and other obligations.

The general rule of thumb for homebuyers is to stay within a price range that is no more than “three to five times than your annual household income”, or “payments under 36% of household income.” 

#3 Keep An Eye On Your Credit

To get a good loan with good rates, you need good credit. As the determining factor in the mortgage loans and interest rates you qualify for, it’s essential to keep a close watch on your credit score. It’s possible for errors in the calculation of your credit score, so be sure to check for mistakes and dispute it if one exists.

#4 Get Pre-Approved For A Mortgage

There are a couple of advantages of getting pre-approved before your home search. A pre-approval will allow to know exactly how much you can afford, as wells as put you a step ahead other buyers toward making an offer on that perfect home you come across. 

Before getting pre-approved, you will need to be pre-qualified. This is a simple process of providing your mortgage lender with your income, asset, and credit information. The mortgage lender will then determine how much you’ll be approved for.

Getting pre-approved goes a step further, requiring documentation of your W-2s, bank statements, pay stubs, and possibly your federal tax returns.

Once pre-approved, you’ll be ready for a mortgage loan. Having this pre-approval signals to sellers that any offer you make is serious. It’s a competitive market with today’s low inventory and high buyer demand for housing, so having this advantage over other buyers is important.

#5 Hire A Real Estate Agent

Hiring a real estate agent is single most important step to take before making an offer on a home, especially if none of the above steps were taken. A home, for most people, is the most expensive investment you will make in your lifetime. A good real estate agent will make all the difference in the successful sale of a home, whether buying or selling. 

There is a long list of codes and regulations associated with real estate, which changes every year, and can be complex to fully understand and abide by. Real estate agents are required, by law, to stay up-to-date with these codes and assure that nothing is violated. 

Being experts in the industry, real estate agents can also catch certain faulty features of a home that you may overlook. 

Hiring a real estate agent is worth the investment because real estate agents have the knowledge and experience in the local market to effectively negotiate a better sales price, while assuring the contract is without flaws or loopholes.

 

Subscribe to our newsletter to stay up-to-date with local news, events, and market reports.

Hart Real Estate Solutions—Your Trusted Guides

 

Source: 

First Time Home Buyer : The Late-2016 Guide to Buying a Home by Dan Green

Nationwide Housing Shortage

by Hart Real Estate Solutions

As generations grow older, new waves of people are entering the housing market. After graduating college and beginning their career, people in their 20’s begin to look for their first home. These new buyers make a major influence on the nationwide demand in the housing market. To keep housing rates at a healthy level, the amount of vacant houses need to meet the number of new market entrants. Today, concern has risen over our current housing shortage.

With 318.9 million people in the U.S., and 16,585,415 vacant homes in 2015, only 5.2% of this growing population will be able to find a home to move into this year. According to the U.S Census Bureau, 1,055,000 new homes were built in 2015, which is small in comparison to the number of buyers entering the market. First time buyers are typically between the ages of 20 to 29.


With 13.8% of the country’s population in this age group, there is a larger influx of new buyers than houses available.


Considering the rising student debt and housing prices, the housing shortage just adds to the ever growing challenge for first time buyers.

With baby boomer’s now seeing their millennial grandchildren in their twenties, we are experiencing a large expansion of the number of homeowners in this country. Now these millennials are out of college, starting a career, and looking to buy a house.


Millennials have surpassed their parents’ Gen-X and their grandparents’ Baby Boomer generations as the largest American generation to date. 


This influx in housing demand continues to be a challenge for the construction industry, which is still recovering from the 2008 financial crisis.

Something to keep in mind, however, is that the birth rate is not constant. After the millennial generation, the birth rate started to decline. The population of ages 10 to 14, accounting for 6.7% of the population, is .4% less than the age bracket 15 to 19, which is 7.1% of the population. From there, the birth rate continued to decline. Ages 5 to 9 lowered to 6.6% of the population, and ages under 5 are 6.5%. This decrease entails how the housing market will react in the years to come. If the birth rate continues to decline, then we will see a reversing trend in the housing shortage. 

Along with many other factors, population is major determinant of long-term market trends. Keeping all other factors constant, a large bubble in our population will affect future housing trends. When construction fails to keep up with the growing demand for more houses, we experience a housing shortage. Then, as demand supersedes supply, prices increase. This is why it is useful to look at the U.S. Census reports to foreshadow future housing bubbles. 

At Hart Real Estate Solutions, we stay in tune with the latest market stats to anticipate changes in the real estate market. We don’t just present meaningless data either, we analyze it to find noteworthy correlations and estimate projections of what to expect in the future. Subscribe to our monthly newsletters to keep yourself up to date with the latest news and reports, which may help answer some questions you have about real estate, or just provide you with interesting information. Have any questions about your home? Contact us on our website, or give us a call for a free home consultation at (406) 599-6961.

 

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