Fall is on its way to the Gallatin Valley. MSU students are starting to roll back into town and Cats fans are getting excited for the first home game at the newly expanded stadium.

Residential Real Estate sales have been chugging along at a decent rate all summer, and continue to outpace 2009 and 2010, even without the help of a tax credit incentive.  Sales of single family homes in Bozeman from January 1st through August 1st exceeded those during the same period last year and the year before at 331 versus 313 and 239.  Even though the number of sales has not returned to peak levels, one might begin to think they’ve returned to a “healthy” level. We need to ask ourselves if we want sales to return to peak levels, as those levels have shown themselves to be unsustainable. Home prices have not been increasing, but the increased number of residential sales shows signs of stability at the local level.

There is more good news for buyers looking to get into an affordable home as interest rates remain low and have dipped even lower than many expected. They have remained volatile, but are currently below 4%, which is an almost unbelievable level. Since rates fluctuate and this is a monthly column, check with a lender to see where rates are at today. A 30 year loan for a $200,000 loan at 4% would run approximately $955 per month for principle and interest. Compare this to approximately $1200 per month at 6% and it’s easy to see how these low rates can add up to huge savings.

The included data reflects sales of homes in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. It includes sales of single family homes and does not include townhomes or condominiums. The data includes home sales reported through the local Southwest Montana MLS, and does not include private party sales. 

Tim Ford – REALTOR©