The summer of 2012 has been the start of a rebound for the Bozeman Residential Real Estate market. Sales numbers and prices continue to tick upwards, signaling signs of improvement in the residential segment of the market.

For those who are still renting and trying to decide whether or not to buy, there was recently an in-depth study released by Zillow, an online Real Estate website, which compared the costs of owning versus renting. In Zillow’s study, they took into account the costs and benefits associated with buying such as down payment, purchase costs, mortgage payments, property taxes, utilities, maintenance costs, tax benefits, home value appreciation, etc. They also factored in similar costs for renting the same property along with rent appreciation.

The study found that in a majority of the 200 markets and 7,500 cities analyzed, the breakeven point for owning versus renting is 3 years or less. The study did not focus on any areas in Montana. The closest area studied was Spokane, which had a breakeven point of 2.8 years. The Fort Collins and Loveland areas of Colorado had a breakeven point of 3.3 years.

This study coincides with my belief that it’s a great time for buying, as long as the buyer is confident they will be in their new home for at least a few years. For those who may have big moves in the next 12 to 24 months, the mobility of renting remains an attractive option, unless the potential buyer wants to continue to hold the property as an income generator.

As usual, I have included data for the number of homes sold during the first 7 months of 2012. In addition to the 392 homes sold during this time period, another 140 homes are currently pending, or under contract, as of the date of writing this article.
The included data reflects sales of homes on both less than and more than one acre in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. The data includes home sales reported through the local Southwest Montana MLS, and does not include private party sales, Condominiums, or Townhouses.

Tim Ford is a Realtor ® with Vellinga Real Estate in Bozeman Montana. He can be contacted at 406-209-1214.