Intro to Bozeman

How Coronavirus is affecting the Economy and Bozeman Real Estate

by Liz Nitz

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.

 

 

 

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The following homes listed below were just listed in the last 7 days. This seller’s market is hot so we keep a close eye on the latest inventory. Subscribe below for instant updates of your ideal criteria.

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67 Wickwire Way, Bozeman, Montana 59718

67 Wickwire Way, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.19Acre
2,067Sqft
Settle into new construction at Black Bull. Located steps away from club amenities and backing to open space, "The Bungalow" offers single level living at its finest. The Bungalow is just over 2,000 sq feet, with 3 beds and 2.5 bathrooms.
$849,000

1995 Buckrake Avenue, Bozeman, Montana 59718

1995 Buckrake Avenue, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.12Acre
1,757Sqft
This townhouse is a rare find, with a fully fenced back and side yard, large wraparound deck, and bordering park space on two sides. Surprisingly good Bridger mountain views from the deck, living room and master suite. Main living areas are on the first floor, with all bedrooms and laundry area on the second floor.
$460,000

5756 Westmorland Drive, Bozeman, Montana 59718

5756 Westmorland Drive, Bozeman, Montana 59718

4Bedroom(s)
2Bathroom(s)
0.10Acre
1,986Sqft
Oh yes, the Lakes of Valley West; a highly sought after community located in Bozeman, MT! This lovely home features 4BR/2.BA & will knock your socks off with its contemporary look and feel w/ large southern exposure windows, located at the end of a cul-de-sac and adjoins the community walking trail.
$599,900

71 Ridge Line Lane, Bozeman, Montana 59718

71 Ridge Line Lane, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.20Acre
3,286Sqft
Here is your opportunity to own a beautiful home in North Star Subdivision. As you enter the home you will notice the main level provides a functional open-concept floor plan throughout the living, dining, and kitchen area. This home is accented with wood trim, vaulted ceilings, a beautiful gas fireplace, stainless steel appliances, built-in speakers, and the kitchen features granite countertops.
$595,000

1297 Thomas Drive, Bozeman, Montana 59718

1297 Thomas Drive, Bozeman, Montana 59718

2Bedroom(s)
2Bathroom(s)
1,075Sqft
Newly constructed condominiums offering a combination of 1 BD/1.5 BA units along with 2BD/2BA units and 2BD/2.5BA properties. GE appliance package with including electric range, dishwasher, disposal, microwave, exhaust hood, washer/dryer, refrigerator. Quartz countertops, natural gas forced air and AC. Walk-in closets with storage, some condos have decks with additional storage.
$360,000

2929 Texas Way, Bozeman, Montana 59718

2929 Texas Way, Bozeman, Montana 59718

4Bedroom(s)
1Bathroom(s)
4Acre
2,348Sqft
Hard to find small ranchette property in SW Bozeman. Though only four acres this property has it all. The home was originally built in 1969, but has been completely remodeled with Anderson wood windows, hardwood floors, upgraded cabinets, granite counter tops, plumbing, lighting, etc.
$1,250,000

606 Park Place, Bozeman, Montana 59715

606 Park Place, Bozeman, Montana 59715

5Bedroom(s)
3Bathroom(s)
0.31Acre
3,530Sqft
Welcome to the charming SE Bozeman neighborhood of Westfield & this fabulous (currently being remodeled) home at 606 Park Place that features a versatile floor plan with mature landscaping that makes this property great for years of living, growth & memorable gatherings. This home includes 5 bedrooms & 3.
$821,010

3138 Annie Street, Bozeman, Montana 59718

3138 Annie Street, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.16Acre
1,918Sqft
Welcoming home in Harvest Creek! Built in 2011, this home is lightly lived in! It features 3 bedrooms, 2 full baths with a total of 1918+/- square feet including a massive bonus room upstairs! Master bedroom and ensuite bath on the main level. Covered front and rear patios with a fully fenced back yard. Great location and close to parks! On the interior of the subdivision and a quiet street.
$564,900

1419 S 3rd Ave, Bozeman, Montana 59715

1419 S 3rd Ave, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.21Acre
2,632Sqft
This charming home located just minutes from MSU is move in ready. Too many updates and upgrades to list, but some include an open, modern floor plan, upgraded kitchen with stainless steel appliances, new light fixtures, and more! The master suite features a spacious and upgraded bathroom. The back yard is an oasis, perfect for entertaining on the spacious deck.
$899,000
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Windermere Downtown Bozeman

135 E Main St.

Bozeman, MT 59715

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