SECOND HOME DEMAND INCREASES

According to a recent article in the Wall Street Journal the market for vacation homes appears to be increasing. This is also supported by the 2010 National Association of Realtors Investment and Vacation Home Buyers Survey where one in ten home buyers purchased a vacation home in the previous year. Sales in Big Sky and the Bozeman area also support an increased interest in investment and second homes.

Interestingly in most markets where demand has improved, prices have not increased. A broker in Hilton Head, S.C., noted that many buyers are purchasing the low end of the market and in New York’s Hamptons area another broker noted that sellers have become aware that homes have to be well priced to sell. The Hampton market has increased because the prices are now mostly where they should be, according to the broker. Data from the Southwest Montana MLS supports those trends in this part of the state.

The sales data below represents sales in the Big Sky area. The data from 2011 represents closed transactions between January 1, 2011 and March 27, 2011. In addition to the closed volume noted below for 2011, there is currently another $12,263,900 in pending transactions combining to total almost $30 million in sales during the first three months of 2011.

YEAR MEDIAN SALES PRICE & DOM VOLUME SALES

2011 $368,201 105 $17,683,201 39

2010 $350,000 101 $70,998,176 139

2009 $350,000 165 $53,789,868 93

2008 $615,000 210 $92,236,284 89

2007 $687,500 163 $120,655,988 118

The average sales price decreased from 2007 through 2010, but in 2011 the average sales price increased due to several sales near the very top end of the listed homes in Big Sky.

YEAR AVERAGE SALES PRICE

2011 $769,230

2010 $510,778

2009 $578,385

2008 $1,036,362

2007 $1,022,508

 

Posted by

Don Pilotte, Broker, GRI, RRS

Prudential Montana Real Estate

Big Sky Office- Town Center

55 Lone Peak Drive Ste. 3

Big Sky MT 59716

cell: 406-995-4060

email: don.pilotte@prumt.com