Wanda's Blog From Billings, Montana

Today I got the usual question about our local Real Estate Market from a group of medical people (friends) and I had some hard truth to tell!  Our 2nd quarter of 2009 is not performing as well as I'd hoped!

I'll try to give you a few numbers, just so you can chew on them for awhile.

The volume of dollars in residential sales in areas 1 - 10 for the 2nd quarter of 2007 was $136,484,281.

The volume of dollars in residential sales in areas 1 - 10 for the 2nd quarter of 2009 was $96,306,411.

The average price of a residential home in areas 1 - 10 for the 2nd quarter of 2008 was $204,023.

The average price of a residential home in areas 1 - 10 for the 2nd quarter of 2009 was $191,845.

I compared the volume for 2007 to 2009 just because that's our all time high in the last few years.  2008 volume was $124,045,825.

We've also lost volume in number of sales.  In 2008, during the 2nd quarter, we sold 608 units, in 2009 during the same period we sold only 502 units.

Take heart, those who priced their homes correctly for this market struck paydirt:  222 of those 502 units that sold in the 2009 period were under contract in less than 30 days!

Only one home over $500,000 closed during that quarter!

FHA loans are cooking right now with more FHA loans than conventional for the first time in 4 years.  222 FHA loans to 161 conventional loans.  Just to compare, in 2007 FHA loans were 85 and conventional loans were 466 (those were the days my friend).

More homes are qualifying for FHA loans with a few minor defects this year, where as for the last couple of years we had way more conditions that needed to be fixed prior to closing.  Appraisers are looking hard at Value for the neighborhood. 

Lenders are hoop jumping through more and more, ever-changing underwriting, they must sit and wonder, what the heck will I run into on each and every loan.  If you have a decent credit score, a job and a good debt to income ratio, you can get a loan.  Oh and don't forget the first time home-buyer tax credit, I've had a few of those happen, and it really makes the buyers happy.  I love happy people.

I tried to check my crystal ball to see what our future holds, but all I see is fog!  Remember to price your home for the current market, and it should sell.  The best homes go for the most money.  After all, as a buyer will say on almost every house hunting excursion lately, "I'm lookin' for a deal...I can afford!"

The Quilting Realtor

Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas 2wandathomas@gmail.com Call or Text 406-698-8640 for help with all things Montana. Local MLS Search Link

Worden is a small town east of Billings Montana with a great homesteader history.  Located on the "Project", Worden began it's wonderfull Real Estate adventure with the development of an irrigation project with water from the Yellowstone River.

Homes in this area vary from residential lots right in the town of Worden, to small and large acreages dotted amoungst the farms and ranch land surrounding the town.

Right now, the area of Worden has 6 active listings to choose from.  Several which are very affordable and located right in town.  A few small acreage country homes are also available.  The average listed price of the homes currently on the market is $285,000.  One home is under contract, priced at $219,400.  No sales have been completed in the last 60 days.

For more information about listings in the area, search the MLS at www.mymontanahomestead.com

The Quilting Realtor

Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas 2wandathomas@gmail.com Call or Text 406-698-8640 for help with all things Montana. Local MLS Search Link

Not too long ago, ok maybe a long time ago (35 years seems like just a while back), my MOther In Law had a 6.25% 30yr fixed mortgage on her home.  I said "don't ever pay that off, you won't get money any cheaper", the going interest rate on a new home loan was somewhere in the vicinity of 12%.  This is a new day.

The lenders are shouting with joy right now, because after being called the scum of the earth for helping people get into toxic loans (not the case around here, 3rd lowest rate of foreclosure), they are now the HEROES of the hour with rates at 4.5% to 5% 30 year fixed mortgages.  $$$ cha ching!  More dollars for you in your pocket, more dollars for them in transaction fees.  Even more interesting are the folks coming out of the woodwork wondering if the bottom is here.

Should I upsize, downsize or buy more for investment?  Since our local sales volume is down 20%, you would think our prices would be going down.  Not so, we actually increased by about $3,000 for average sold price on an average in the $196,000 range.

Anything that is priced right around here is selling in less than 30 days, overpriced stuff still sits and waits.  People who are wondering where the bottom of the market is should come over to my office and check my crystal ball!  If you knew the stock market had peaked and was headed down, did you pull all of your stocks or loose 25% to 50% of your 401K like I and a lot of my friends did?  Can you live in your 401K?

Buyers are missing out on really good deals because they get burned out trying to find the desperate price instead of the best house for the money!

We just had a homeforecasters.com report come out that "forecast" the Billings Montana market will appreciate 3.1% for 2009.  Humm, I wonder.  I'll just have to check my crystal ball. 

The Quilting Realtor

Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas 2wandathomas@gmail.com Call or Text 406-698-8640 for help with all things Montana. Local MLS Search Link

We're Flat, But Not Sinking.  Is this all there is or are we just behind the curve?

Our peak number of closed sales occurred in 2006, like a lot of other places.  Now we're down in total number of single family home sales by about 20% but our absorbtion rate is still under 6 months.  I could of taken this right out of our latest issue of Realtor Magazine our number are so close.

Our lenders are finally smiling, they have about 10 to 1 refi folders they're juggling compared to home sales.  I'm not sure what this means except that more people are staying put and getting a better deal than they had before.

Oh, and those HELOC's that had a floating interest rate!  They're getting rolled right into the first mortgage refi. 

I have a few buyers who are "on the fence", they want to buy but just aren't sure that they can get the best deal yet.  I don't know what to tell them since our price still hasn't gone down, in fact, it's up a little.

So I wonder?  Are we insulated or is this all there is?

Happy New Year

The Quilting Realtor

Many Dream Of Living In Montana I'm One of the Lucky One's That Already Do! Wanda Thomas 2wandathomas@gmail.com Call or Text 406-698-8640 for help with all things Montana. Local MLS Search Link