Bozeman Gets First Whole Foods Market in Montana

Bozeman Gets the First Whole Foods Market in Montana

It’s no secret that Bozeman’s growth has been skyrocketing. While the pandemic was shutting down major cities and even some entire states in the summer of 2020, Bozeman saw an influx of out-of-town buyers. What’s more, the Gallatin Association of Realtors Market Watch is predicting that “speedy sales and multiple offers are likely to remain a common occurrence and will keep the housing market hot even when the weather is cooling.”

And now comes the announcement that Whole Foods Market is coming to Bozeman! There’s a couple strong reasons why Bozeman is getting the first Whole Foods Market in Montana.

  1. Economic strength Bozeman was ranked No. 1 in economic strength out of 542 micropolitan cities for the last three years in a row. (According to the rankings source Policom.com, the highest ranked areas have had rapid, consistent growth in both size and quality for an extended period.)
  2. An educated demographic Bozeman’s summer influx was a lot of newly remote, urban professionals who wanted wide-open spaces, a variety of outdoor amenities, and a safe community to raise kids. Whole Foods Market knows this demographic understands the value and cost of organic and specialty foods and are willing to pay more for it.

Whole Foods Market at the Gallatin Valley Mall

The Whole Foods Market will be part of a major revitalization plan for the Gallatin Valley Mall. It’s actually a great location if they can reimagine that whole complex. It’s centrally located for all the neighborhoods of Bozeman and has the right traffic patterns. Whole Foods does not go into a neighborhood without doing major due diligence. They look at the availability and cost of real estate, population density, education, demographics and the community’s interest in natural and organic foods.

The Gallatin Valley Mall Group will transform the 37.4-acre property into a unique “Main Street” retail experience. There will be public gathering spaces and a diverse mix of tenants.  Whole Foods Market is rumored to debut in fall 2021. Announcements for Phase 2 will be coming in the months ahead.

If Bozeman sounds like the right place for you, let me help you find the right home. Contact me at liz@windermere.com.

 

(Photo courtesy Gallatin Valley Mall Group)


Posted on October 20, 2020 at 8:54 am
Liz Nitz | Posted in First time home buyer real estate, Living in Montana, Mixed use, Real Estate in Montana | Tagged , , ,

Live/Work Housing in Bozeman

(Photo of Northbound Condos)

Live/work housing is gaining popularity in Bozeman, especially among young professionals who are looking for places where they can easily work a business out of their home. Buyers also want properties where they can store their toys and have plenty of space to work on them.

Some shared features of live/work housing in Bozeman are big garages with roll-up doors, separate entryways for residential and commercial, living quarters on the second floor, and easy access to the freeway.

Live/work in Bozeman

Northbound Condos – Convenient and quiet location near I-90 freeway.

  • 1,600 square-foot units
  • 800 square-foot, 1 bed/bath apartment
  • 800 square-foot garage with bathroom, gas heater/hookup, roll-up door and polished concrete floors
  • Modern finishes, quartz countertops, large picture windows and balconies with unobstructed views of the Bridger Mountain Range
  • Sold Out

 

27th Parallel – Tucked away near one of the busiest economic corridors in Bozeman.

  • 2,400 square-foot loft/warehouse units
  • 800 square-foot, 1 bed/bath condo-loft or equivalent office space
  • 1,600 square-foot warehouse space with bathroom, gas furnace and 14-foot roll-up door for semi-truck access, RV storage, etc.
  • Second-story balcony/patio
  • Less than 2 miles from I-90
  • Backs up to walking/bike path that parallels Catron Creek
  • Close to major retail and entertainment
  • Sold Out

(Photo of 27th Parallel courtesy Cortney Andersen Real Estate)

Glen Lake Live Work– Awesome location overlooking Glen Lake, with dramatic, unobstructed views of the Bridger Mountain Range.

  • In Glen Lake Commerce Subdivision, one of Bozeman’s newest commercial subdivisions, offering M-1 zoning
  • Walking distance to popular Map Brewing and trail system surrounding the East Gallatin Recreation Area
  • Total of 15 lots in the subdivision
  • Limited opportunity, lots selling quickly

 

Bozeman is becoming a very desirable place to live and work. A 2018 report by the city projects another 27,500 people to move into Bozeman by 2045, and I talked about Bozeman’s thriving entrepreneurial community here. Let me help you find the perfect place in the perfect town. Contact me at liz@windermere.com.

 


Posted on October 13, 2020 at 10:04 am
Liz Nitz | Posted in First time home buyer real estate, Living in Montana, Mixed use, Real Estate in Montana |

Which Bozeman Neighborhood Is Right for You?

Liz Nitz Bozeman Real Estate Agent hero

If you’re wondering which Bozeman neighborhood is right for you, it’s important to consider your lifestyle. Are you looking for a neighborhood out of town with room to spread out? Or maybe you want to be in a neighborhood where you can walk to your favorite coffee shop on a whim. If you’re not sure which Bozeman neighborhood is right for you, here’s an easy guide that can help.

Which Bozeman neighborhood is right for you? You want to walk and bike everywhere.

Downtown Historic Districts

Bozeman has quite a few designated historic neighborhoods. They all feature walkable, tree-lined streets and historic architecture that really show off Bozeman’s history. If you find yourself walking through the following historic districts, consider Main Street as an easy separator between the north and south neighborhoods.

    • Bon Ton -This district stretches along the 200-1000 blocks of S. Willson Avenue, S. Grand Avenue, S. Third Avenue and W. Cleveland Street. Here, you’ll find big, beautiful, turn-of-the-century mansions on large lots that set it apart from the other southside historic districts.
    • South Willson -Willson Avenue is a major north/south thoroughfare and the houses in this district are some of the finest historic homes you’ll find anywhere in Bozeman.
    • Cooper Park -This modern historic district is home to Bungalow-style homes and one of Bozeman’s most popular off-the-leash dog parks, Cooper Park.
    • Lindley Place -This little cozy, tucked-in jewel connects to Bozeman Creek and popular Bogart Park.
    • Montana State University – Starts at W. College St, S. 11th Ave, W. Grant St and S. 6th Ave. and comprises 89.3 acres in the core of the college campus.
    • South Tracy- South Black – This area is made up of 93 diverse, vernacular houses lining S. Tracy and S. Black Avenues between Olive and Alderson Streets. There is also a large school building and a neighborhood grocery store.
    • North Tracy– Running from Villard to Peach Streets, this area contains the most significant concentration of historic residential architecture north of Main Street.
    • Bozeman Brewery – Sitting along the 700-800 blocks of N. Wallace Avenue, this area is a booming corridor for restaurants, coffee shops, galleries and strikingly modern, renovated homes.

The Village Downtown

The Village Downtown is a unique option because it is a new development in a historic area. As you enter The Village Downtown, you will feel like you’ve been transported to a quiet suburb somewhere on the East Coast. The Village features stately red brick townhomes with a private backyard and patio; modern high-rise lofts that are maintenance free and range from 900 sq. ft. to rooftop penthouses; or homesites where you can build a brand new home in a historic neighborhood. The Village has its own private driveway and is surrounded by open land. It is convenient walking distance to shops, restaurants and galleries on popular Main Street in downtown Bozeman. Active HOA.

Which Bozeman neighborhood is right for you? You want a newer house in a nice subdivision.

Flanders Mill

Flanders Mill is a master-planned community located in northwest Bozeman. It is set on 137 acres in one of the most active economic corridors in the Gallatin Valley. The newest Phase 7 is off of the Oak Street and Flanders Mill intersection. It consists of 10 townhome lots averaging 3,700 square feet and all priced at $82,500. There are also 15 residential family lots. This phase offers majestic views of the Bridger Mountains, Spanish Peaks and Tobacco Roots. The new Bozeman High School and the 80-acre Bozeman Sports Complex are both walking distance. Active HOA.

Black Bull Golf Community

Black Bull is a premier, private golf community in Bozeman. Residents have world-class amenities: a 19-hole Tom Weiskopf-designed golf course, collegiate-sized pool with 10,000 sq. ft. pool deck, modern fitness center and new $3 million members-only clubhouse with its own restaurant/bar. There are 300 custom homesites and 48 new luxury golf villas that offer maintenance-free living. Black Bull is a 15-minute drive from downtown Bozeman and the Bozeman Yellowstone International Airport. Active HOA.

Home 40

This brand-new Bozeman subdivision is located southwest of Montana State University and close to Hyalite Canyon and Gallatin National Forest. It consists of 49 lots ranging in size from 1.2 to 1.8 acres. Amenities will include a fitness center, pond and beach area, community patio area and outdoor fireplace, and trails. There will be views of the Bridger Mountain Range, Spanish Peaks and Tobacco Roots. Lots are still available, starting at $300,000. Active HOA.

Which Bozeman neighborhood is right for you? You’re looking for land and somewhere quiet.

Bridger Canyon Area

If you want to be surrounded by the beautiful Bridger Mountains and away from the hustle and bustle of Bozeman, then consider the Bridger Canyon area. This is true Montana living where you can have the home of your dreams on plenty of acreage. Some well-known residential pockets are in Kelly Canyon and Jackson Creek. The main road from Bozeman is Bridger Canyon Road, which also leads to the favorite local ski resort, Bridger Bowl, and Crosscut Mountain Sports Center.

Triple Tree Ranch

Triple Tree Ranch is one of Bozeman’s most desirable, luxury neighborhoods because of its large lots, one-of-a-kind mountain views, and close proximity to downtown Bozeman. This southeast Bozeman neighborhood consists of 106 lots on 600 sweeping acres. The large custom homes are on one-acre and larger lots. Residents have breathtaking views of several mountain ranges and a local elk herd that migrates over during the winter months. The popular local favorite, Triple Tree trail, runs along the edge of the neighborhood. Active HOA.

 

If you’re considering a move to Bozeman, you’re not alone.  My last blog post talks about the influx of out-of-town buyers that came to Bozeman in the summer of 2020. Contact me at liz@windemere.com if you want help finding the right home in the right neighborhood for you.


Posted on September 29, 2020 at 12:46 pm
Liz Nitz | Posted in Living in Montana, Real Estate in Montana | Tagged , ,

Bozeman real estate in the summer of 2020

 

What happened in Bozeman real estate in the summer of 2020?

2020 was the  summer where Covid raged across the United States, shutting down major cities and even some entire states.  Yet here in Bozeman, we saw an influx of out of town buyers.  What were the driving factors behind this influx?

 

Bozeman Is a Great Place to Work From Home

*According to online brokerage Redfin, page views of homes in towns with fewer than 50,000 residents were up 87% year over year in May. Why? The pandemic has created more work-from-home opportunities. As a result, employees are eager for homes in small towns that have more affordable options, room to breathe, and a community-focused quality of life that’s hard to find in big cities.

 

Relative Affordability and a Strong Housing Market

Bozeman’s housing market rebounded quite nicely in May after reopening from Covid-19 closures. The median home price in Bozeman in March 2020 was $485,000; outside the city limits it was $547,000. But as *Bozeman’s population has grown by nearly 20% in the last five years, there’s definite buzz about its continued growth and what that means for housing supply and prices.

 

High Quality of Life

Another reason why Bozeman saw an influx of out of town buyers in summer of 2020 was due to Bozeman’s reputation as a true gem when it comes to active amenities for its lucky residents.

We  are lucky enough to have:
Bridger Bowl: This local, family-friendly ski resort is just 16 miles away. There are two free shuttles from Montana State University and the Gallatin Fairgrounds to/from Bridger Bowl.
Main Street to Mountains: This amazing trail system connects Bozeman to the mountains and spans more than 80 miles through public and private land. Great for walking, hiking, biking, birdwatching, and just taking in some beautiful, natural scenery.
Bridger Ski Foundation: This community ski organization runs programs for all ages in Nordic, Alpine, and Freestyle skiing. They also groom an incredible network of community trails for the public in Bozeman.

 

Ease of Transportation

Getting around Bozeman is pretty stress-free, and scenic too!
*The average one-way commute time is 14.6 minutes; compared to the national average of 26.4 minutes.
Hop on your bike or walk along the popular Galligator commuter trail, which connects Montana State University to Downtown Bozeman. Or hit the many designated bike lanes throughout the town.
Streamline Bus: The area’s public bus offers FREE service from Bozeman, Belgrade, Four Corners, and Livingston, with seasonal service to Bridger Bowl.

For more information about the Bozeman real estate and living in Bozeman, check my website and blog at https://movemetomontana.com/ 

*Sources
Prospera Business Network: 2020 Economic Profile of Gallatin and Park Counties, Montana
redfin.com
bestplaces.net


Posted on September 22, 2020 at 7:27 am
Liz Nitz | Posted in Real Estate in Montana |

14 Factors that determine a home’s value

In trying to evaluate your home for a listing price that could actually result in a sale, agents and owners should look at the following factors objectively and without emotion.

A buyer may react emotionally to an aspect of the home which is great but most buyers will then ask their agent to do a comparative market analysis to measure the fairness of the asking price.  If a buyer is getting a loan to purchase the home, the home has to appraise according to strict guidelines.  See here for what an appraiser looks at  https://sf.freddiemac.com/content/_assets/resources/pdf/forms/70.pdf

 

Following are 14 Factors that help determine a home’s value.

  1. Age of home and design style – While newer homes are favored by some buyers due to the lack of maintenance requirements, there are many buyers who love the charm of an older home, especially those of the craftsman and victorian style.
  2. Structural materials and systems.  Even in an older home, one that has had updates to systems such as electrical, plumbing, heating and replacements to roof and siding will be seen as more desirable and garner a higher price.
  3. Quality of Renovations and Added Amenities.  Renovations that are properly permitted are most desirable. Beyond that, the quality and workmanship of renovations will garner a larger listing price.  Added Amenities such as hot tub, water feature, etc will also add value.
  4. Floor plan.  Is the floor plan functional for today’s consumer? Needs and tastes change so this can be a moving target.
  5. Number of bedrooms and bathrooms.  Price should be reflective of these numbers and these days, a private master bath is a sought after feature.
  6. Square footage.  Not always the most important element if the home has a great floor plan and makes use of space well.
  7. Curb appeal.  Very important for first impression.
  8. Lot square footage and design.  Not only is the lot important but also what is done with the space. People want to spend more time outside and a backyard oasis where one can entertain and relax is a sought after commodity.
  9. Storage.  More important for some consumers than others but organized storage is generally a plus.
  10. Garage.  In some places, the number of garage spaces can make a huge difference in selling time and price. In Bozeman, 3 garage stalls are very desirable so that people can store their toys on site.
  11. View.  Views can increase the value of property especially if they are unobstructed and protected.
  12.  Location.  Everything factors in here from walkability to shops, coffee, restaurants, ambient noise, convenience to               freeways, airports, perceived demand for the neighborhood.
  13. Neighborhood.  What does the rest of the neighborhood look like? It is most desirable to have like kind or better properties than the subject home in the neighborhood
  14. Comps and the current real estate market.  What have other homes sold for in the past 90 days? And then what is the  momentum of the current market?

If you are curious how your home would be valued, please reach out and let’s schedule a free property analysis.  Montana is a non disclosure state so only a licensed relator or appraiser has access to real sold data which you need for an accurate valuation.  For up to date information on the Bozeman market, read my blog posts at  https://movemetomontana.com/.

 


Posted on July 12, 2020 at 7:13 pm
Liz Nitz | Posted in Living in Montana, Real Estate in Montana | Tagged , , ,

Come home to Bozeman Montana

Are you one of many people who are considering a move out of a large city?

Come home to Bozeman, a city community of 50,000 located off I-90 in the southwestern region of Montana.  Bozeman can be found in the Gallatin Valley, 4820 feet above sea level and surrounded by Mountain ranges.

Our Mountain Ranges include:

Bridger Range

The Bridger Mountains are located to the northeast of Bozeman. The highest peak in the Bridger Range is Sacagawea Peak at 9,665 ft (2,496 m).

Gallatin Range

The Gallatin Range is located south of Bozeman and includes more than 10 mountains over 10,000 feet (3,000 m). The highest peak in the range is Electric Peak at 10,969 feet (3,343 m).

Madison Range

The Madison Range is located southwest of Bozeman. The highest peak in the Madison Range is also the highest peak in Montana outside the Beartooth Range. Hilgard Peak measures at 11,316 feet.

Crazy Mountains

The Crazy Mountains, often called the Crazies, are located between the Musselshell and Yellowstone rivers. The highest peak is Crazy Peak at 11,214 feet (3,418 m).

Absarokas

The Absarokas are located southeast of Bozeman. The range stretches about 150 mi (240 km) across the Montana-Wyoming border. Eight peaks in the Absaroka Mountains exceed 12,000 feet, including the highest point, Francs Peak (13,140 feet) located in Wyoming.

Tobacco Roots

The Tobacco Root Mountains lie in the northern Rocky Mountains, between the Jefferson and Madison Rivers in southwest Montana. The highest peak is Hollowtop at 10,604 .

With all of these mountain ranges, you can imagine the dramatic beauty that Bozemanites view everyday.

What is there to do for fun?

The year round recreational opportunities are boundless in Bozeman.  With much of the surrounding land in the mountains belonging to the Forest Service , Bureau of Land Management and the state of Montana, these mountains and wilderness areas will stay pristine and able to be enjoyed by generations to come.  And of course, Montana’s rivers are legendary amongst anglers. Popular activities here are hiking, camping, mountain biking, climbing, fishing, rafting, hunting, alpine and Nordic skiing, snow shoeing, and ice climbing.

Bozeman is located only 90 minutes to Yellowstone National Park and  45 minutes to the renowned Big Sky ski area.  We also have our Locals ski area, Bridger Bowl, where skiing can be as challenging or as relaxed as you like and at less than half the cost of Big Sky.

What about work?

But Bozeman is not fun and games all the time! Bozeman has been name #1 Micropolitan City in the US for economic strength, three years in a row!  Montana is still mostly agricultural but there is a burgeoning tech and biotech scene in Bozeman which is strengthened by the entrepreneurial talent and experience that consistently moves here each year.  The business community here is vibrant, smart and symbiotic.  More about Bozeman economic strength at this link. https://policom.com/rankings-micropolitan-areas/

One of Bozeman’s economic strengths is its housing market.  Due to the consistent level of demand , Values of home consistently grow at 8-10 %per year.  Bozeman and the area offer homes from entry level condos to historic downtown homes to multi million mountain ranches and everything in between.

Montana State and the cultural aspects of Bozeman

Bozeman is home to the state’s largest university, Montana State which is also the region’s largest single employer.  Montana State is woven into the fabric of Bozeman which helps the city’s cultural diversity and activity.  There are many ways to experience the arts and culture of the west here including Art walks, music festivals, farmers markets, rodeos, and  parades . Attending one of those events will help you feel part of a community even smaller than our actual 50,000 people.

Does this community sound like a pretty ideal place to live? What are you waiting for?

I am here to help make your dreams, your reality in Bozeman Montana.

Check out my website for timely blogs on living in Bozeman as well as real estate trends. https://movemetomontana.com/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Posted on June 29, 2020 at 8:52 pm
Liz Nitz | Posted in Living in Montana, Real Estate in Montana |

Bozeman Real Estate Rebounds After Covid Closures

Wow Bozeman, what a month! No one was sure what would happen to the Bozeman real estate market during and after the Covid closures.  We found out this week that Bozeman real estate rebounded decisively.

Where we came from…April

In my April report, we saw the full effect of the Covid restrictions and concerns about what would happen to the market and home values.  Our single family home listings were down by over 50%. Pending sales were down 26.8% over April of 2019 and closed sales were down over 55% over previous year.  Prices however were still increasing.  Our inventory of homes to sell to buyers who were still looking dropped to 1.8 months.  More information on April here: https://movemetomontana.com/2020/04/14/bozeman-and-belgrade-real-estate-trends

And then May…Bozeman real estate market rebounds from Covid closures

With Montana starting phase around April 26, the switch flipped and as a result we have a very different picture reflected in our May numbers.  Our listings are still not what they were last year. But they have significantly increased and as reflected in the pending numbers, they were then put under contract pretty quickly.  Closed sales naturally are still running behind last year as that comes from the pended sales from March and April.

 

 

Where are we headed?

I did an open house over the weekend.  It was very well attended with qualified buyers.  Some were new to the area and some were current residents but wanted to buy property before prices went up even further.  I was amazed at how much energy there was about the growth of Bozeman and effect on housing supply and pricing.  Bozeman is voting tonight on whether to annex an area in South Bozeman.  While not many people are happy about development in that area, we are going to desperately need more housing for all of the people who want to live here. https://www.bozemandailychronicle.com/news/city-commission-to-vote-on-annexation-zoning-for-south-bozeman-development/article_bc701bb0-b9ae-5541-bb6f-57546483cd63.html?utm_source=dlvr.it&utm_medium=facebook&fbclid=IwAR37M0klgSxFLxkGvVpDr8XIRV0PwoVv7-nEtOG8hd7H46K6rHT9wpGQ6rA

Please reach out to me to learn more about the market or the value of your home!

406 499 4218 or liz@windermere.com


Posted on June 15, 2020 at 4:27 pm
Liz Nitz | Posted in Living in Montana, Real Estate in Montana, Uncategorized |

How Coronavirus is affecting the Economy and Bozeman Real Estate

We are right now in a unique situation not seen before. I thought it prudent to research how Coronavirus is affecting the economy and Bozeman real estate market

Our lives have changed drastically in the past week; kids are home from school, trips have been cancelled, gathering places closed. We also have anxiety about what is going on out there; not only do we have anxiety about being ill, or perhaps carrying the virus to someone who may be at risk for serious complications from the virus, but we also have anxiety about the fact that our financial world has been turned upside down.  This perhaps brings back bad memories of the 2008 crash and the recession that followed.

 

So let’s try and address some of these anxieties caused by the Coronavirus outbreak:

First of all, you are doing everything right if you are following the steps recommended by the CDC.  https://www.cdc.gov/coronavirus/2019-ncov/index.html  These steps are in your control and should keep you and your household healthy.  Do them and feel good about it!

At Windermere, we are fortunate enough to be backed up by a strong company with many resources.  Some of our financial and economic experts have reached out to us to explain how they see the economic impact of this and the effect on local housing market.

 

Following is a summary of likely effects of the Coronavirus to the US economy as a whole.

These were communicated by Matthew Gardner, Chief Economist for Windermere.

  • The Economy will contract. With the disruption to life, travel etc., we are all spending less money.
  • The Stock market has lost value as a result of the uncertainty of the situation and how long it will continue.
  • Home inventory on market will probably decrease in the next few months as people will not want others in their homes.
  • Buyers will want to take advantage of low interest rates but buying will probably decrease as well as people are uncertain about economy and some may need to wait for stock market to come back up.
  • Economists believe that towards Q3 and Q4, economy and stock market will pick back up.
  • Mortgage interest rates will stay low however.
  • Housing as a sector is well positioned to come out of this positively.
  • Banking rules that were put into place after 2008 have protected housing and made sure that the upside down equity positions held by people then do not exist anymore.
  • Inventory will be tight as households are being created but not enough housing being built overall in US.

 

An analytical look at Coronavirus and Bozeman real estate:

  • Our area is positioned well to weather this kind of storm. We will see some impacts as noted above but we will also rise out quicker than other areas of the country.
  • Why? Our fundamentals are strong.
  • Bozeman area is noted as #1 in economic strength for micropolitan areas in US. https://www.prnewswire.com/news-releases/policoms-2018-economic-strength-rankings-for-933-communities-announced-300585848.html
  • We have had increased demand and not enough supply of homes for many years. This has meant that our median price of a single family home has gone from $329,000 in March of 2015 to $520,000 in February of 2020 and our months of supply has gone from 4.3 months in March of 2015 to 2.2 in February of 2020.
  • Our unemployment rate is very strong most recently being at 2.4% down even from a year ago when it was 3.%. The highest is has been since 2015 is 3.4%.  The interesting thing here is that US Federal Reserve puts natural unemployment at 2.5-3.5% as people move around, change jobs etc.
  • Bozeman is a unique place to live as we all know and why it attracts so many new residents each year. Our quality of life, access to the outdoor activity, ability to earn a living make it truly distinctive.  This will not change.

 

In the immediate future, what will happen?

  • We will have at least two weeks of social distancing to help prevent the spread of this virus.
  • Diagnosed cases will rise because of increased testing.
  • The strategies that the CDC and government have recommended to prevent spread will work.
  • There will be positive news about a vaccine for the future.
  • Discomfort and anxiety will continue in our lives and in the financial markets until things become certain and we have started to see decreasing cases.
  • There is a massive fiscal stimulus coming that is pointed at people and industries most affected by this.
  • Recovery will happen relatively quick as our US economy fundamentals are strong.

 

I will continue to update my blog MoveMeToMontana.com with more information and analysis as I get it.

A disclaimer – I am not an economist but am culling information from economist’s opinions and presenting factual statistics about Montana.  However, one should read this article about how Coronavirus is affecting the economy and Bozeman real estate market as my opinion.   I have curated the information and summarized it in this piece.

Stay healthy and please do what you can to help local businesses!  Shop online with them, order take out, buy gift cards.  They really need our help right now.

 

 

 


Posted on March 19, 2020 at 12:21 am
Liz Nitz | Posted in Living in Montana, Real Estate in Montana | Tagged , , , , ,

Bozeman Real Estate Statistics

Bozeman Real Estate Statistics

 

Presenting Bozeman Real Estate Statistics for the first two months of 2020!  And if anyone thought that we were going to have a slow winter in real estate, they would be incorrect.

 

Let’s start off with Median Sales Prices.

As seen below, we can see that all property type prices are off to fast start  with a roughly 8% increase over last year. To put things in greater perspective, the February numbers of 2018 and 2019 for median sales prices were : 418,000 (2018) 456,375 (2019) for Single Family Home, 253,000 (2018) 289,900(2019) for Condos, 305,000 (2018) 334,950 ((2019) for Townhomes.

 

Days on Market

To fill in our view of the real estate market in Bozeman, let’s take a look at how quickly inventory is moving off of the market or being sold.  We typically measure this by the absorption rate which we call Days on Market.

 

Here we see that Single Family DOM is down 16.7% or has gone from 24 days last year to 20 days that year, reflecting healthy demand that builders are not quite keeping pace with.  There is better news with Condos and Townhomes as those Days on Market have actually increased a bit.

 

How much supply is there?

To finish rounding out our view of Bozeman Real Estate Statistics, let’s look at how many months of supply we have at the moment.  Again here we see a modestly declining inventory of Single Family Homes with increasing inventory of Townhomes and Condos.

 

Coronavirus

One note on the coronavirus.  Currently the coronavirus has not impacted the Bozeman real estate market except to drop home interest rates precipitously so that they are at lowest levels in 50 years!  This certainly will rachet up demand as potential buyers look to take advantage of lower interest rates to afford more house or have a lower mortgage payment.  Keep an eye on my blog as the picture becomes more clear and the medium and longer terms effect come into focus.  For more on interest rates, try this website.  http://www.mortgagenewsdaily.com/

These numbers in this report reflect sold pricing. Remember that Montana is a nondisclosure state so only licensed real estate professionals can access accurate data.  If you would like to dive deeper into market trends or specific price categories, please reach out and let’s have a conversation!

 

I hope you found this helpful – please pass it on and check out my other blog posts at MoveMeToMontana.com.

 

 


Posted on March 10, 2020 at 9:07 pm
Liz Nitz | Posted in Real Estate in Montana | Tagged , , ,

Creating Wealth as a First Time Home Buyer

Over the weekend, I taught a first time home buyer seminar.  I love helping first time homebuyers get into their first home because it means so much not only emotionally but also financially. It is the start of a secure financial future that can help you all the way through your retirement.  Now is a particularly good time to purchase a home as interest rates are at multi year lows, inventory is better than it has been in a while, prices are still increasing but at a less rapid rate and there are plenty of low downpayment programs and down payment assistance options.

I want to focus today’s blog though on exactly how and why you are creating wealth as a first time home buyer and is an important building block of your portfolio and financial future.

The example that I used in the seminar is pictured on this white board photo and I will bullet point it out so it makes sense.

Case #1 – Rent

First assumption is that a person rents an apartment for $1000 a month.

The $1000 goes to the landlord.

The benefit received by the renter is a place to live.  The renter is not paying off a larger debt to eventually own the home outright. ( Unless this a very rare lease to own situation)

There are no tax benefits associated with paying rent.

Case #2 – Purchase home with financing , usually from a financial institution.

This person has purchased a home with lender financing and pays $1000 a month to the lender.

What happens to that money is the interesting part

Part of it (I am using $500 a month in my example below) goes to the bank as interest to pay the bank for using their money.  But the other part of the $1000 payment goes to pay principal on your loan.  Principal is the part of the purchase price that you borrowed to purchase that house. Every principal payment increases your ownership in the house as you owe the bank less with each payment you make.
In my example, $500 a month goes to principal which turns into $6000 a year.  In the space of one year, you have will have reduced your debt by $6000 and that continues for as long as you have that loan.

So that’s a bit of wealth creation right there as you own more and more of a valuable asset.  The money that you pay off is considered your equity in your home.

But that’s not all…you will also be able to take advantage of an appreciating real estate market.

I know we all like to complain about rising home prices but did you think that the flip side is that if you actually own a home with the help of a lender, the rising home prices increase the value of your home too!  And guess what, the bank doesn’t get any of that, its all yours!

You may not touch that equity and wealth for many years but you may want to consider what it can do for you.

Some examples :

  • The equity that you earn simply by paying your mortgage and letting your home appreciate may provide a large down payment for your next home, say if you needed another for a growing family.
  • It can help pay for a second home or an investment property
  • The equity from the first home may help pay for kids schooling
  • It can serve as nice retirement nest egg

 

To recap the benefits that one gains from paying a mortgage over rent:

  • The interest portion of your payment is tax deductible
  • The principal portion of your payment pays off debt (good for the credit score), increases your ownership in that house and creates wealth as your equity builds
  • The value appreciation which increases your equity in that home belongs only to you, not the bank.
  • You have a solid financial wealth tool that can be used later for when you need it.

That first home with very little down can be a springboard to financial security down the road.  Purchasing a home is really one of the best leveraged investments you can make.  Now is a great time to take advantage of this just because of the all of the positive market conditions and available money at low rates.

Please reach out and let’s talk more about more about creating wealth as a first time home buyer!

 

Check out my website and blog https://movemetomontana.com

For more on mortgage rates, check here  http://www.mortgagenewsdaily.com/reports/newsletter

 

 


Posted on February 10, 2020 at 2:38 pm
Liz Nitz | Posted in First time home buyer real estate, Real Estate in Montana | Tagged , , , , ,