Big Sky Returns

For the past few years we've all been hoping for the best while preparing for the worst. Just when the news cycles seemed the bleakest, a ray of hope would peek through the mist when things started moving into positive territory, another shoe would drop and correct the mood.

And then there's Big Sky in the summer.

What's not to like? A new movie theatre is now showing first run films in a first rate facility. New restaurants have added to the selection of fine dining venues. There are zip lines, mountain biking trails and outdoor concerts. The days are sunny and the evenings are cool. And real estate prices are at pre-2004 levels‹that seems like a bargain, and it is. Even the afternoon thundershowers only help add drama to the already beautiful panoramas.

While not completely insulated from the events affecting the rest of the country, this resort community has developed a strong attraction for many people, and it's continued to improve and grow, not always in a linear progression, but grow nonetheless. Following the triple blows of the Yellowstone Club reorganization, the Moonlight Basin reorganization, and then the liquidation of the Club at Spanish Peaks, the area is now somewhat chastened by the recession, but in a solid position for continued growth.

A much-improved Highway 191 makes driving Gallatin Canyon from Bozeman to Big Sky smoother than ever. The Bozeman-Yellowstone International Airport's expansion was perfectly timed, and the facility can now receive more than 400,000 visitors annually and has added more direct flights than ever before. The Big Sky ski resort posted its largest ever skier day-count numbers last winter. Moonlight Basin had its most profitable ski season ever, according to MLB reps. Yellowstone National Park down the road anticipates record-breaking visitations in 2012.

The sporadic recent reports of the national decline in housing inventory are mirrored in our local supply of housing stock. Here's what that means for the Big Sky market:

There are currently 101 "improved" properties listed in the Meadow area for sale; those are homes, condos and town-homes. In the Mountain Village there are 152, with a high-end listing for $5,850,000 and a low end of $59,500 in the Hill Condos.

So, what's sold? Well, 81 Mountain Village properties sold in the last 12 months, 67 properties for under $1 million and 14 for more than $1 million. The top end property sold for over $5 million. In the Meadow, 100 properties sold during the past year. Four of those sold over the $1 million mark, seven were sold for between $500,000 and $1 million and 89 sold for under $500,000. Twenty-nine sold for between $250,000 ­ $500,000 and 61 units sold for under $250,000. Thirty-nine of those sold for under $150,000.

Of the 181 properties that sold in the past year, the average DOM (days on market) was 230, with a several sales on the market for 0 days (priced attractively, no doubt), and 14 properties listed for over 600 days, seven of which were listed for over 1,000.

Evaluating both areas, there are 253 currently listed properties, and there were 181 sales in the last 12 months. This shows that over 70 percent of the supply of housing was absorbed over 12 months. Seventy percent absorption means that there are still some listings out there, which have failed to attract a buyer, for some reason or another; however, with a 3.6 month supply of housing, the market is tightening up.

We're seeing price increases in some sub markets. In Cascade, for example, the high price two years ago was $1.25 million for a single family home. This past spring there were three sales at $1.39 million, $1.5 million and $1.65 million.

All and all, those are nice Big Sky market returns.

Eric & Stacy Ossorio - Brokers

Eric Ossorio is a managing broker of the Prudential Montana Real Estate/Ossorio Real Estate Group in Big Sky, where he works with this wife and partner Stacy.

He's lived in Big Sky for 20 years, and been a broker for 35. Having almost seen it all, he sees no reason to live anywhere else. Contact him at (406) 539-9553 or ossoriorealestategroup.com

Real Estate Outlook: International Boom

International sales were up considerably in the last year, with low prices and a weak American dollar attracting international buyers.
The latest National Association of Realtors 2012 Profile of International Home Buying Activity found that residential international sales rose from $66.4 billion in 2011 to $82.5 billion for the year ending in March 2012.  
"Today's advantageous market conditions have drawn more and more foreign buyers to the U.S. in recent years, signaling how desirable and profitable owning property in this country can be," said NAR President Moe Veissi, broker-owner of Veissi & Associates, Inc. in Miami, Fla. "Low housing prices, a good inventory condition and increased buying power with today's exchange rates help attract international clients. Foreign buyers also have the advantage of working with a Realtor®. Realtors® who specialize in serving international clientele have a truly global perspective; they know what hurdles foreign buyers  face when purchasing property in the U.S., and have the expertise and knowledge that comes from working with clients from different cultures and real estate practices."  
Several areas attracted more international interest than others. The NAR survey found that Florida, California, Texas, and Arizona led the way. Florida was a hub of activity, making up 26 per cent of all foreign purchases nationwide. California came in a close second, accounting for 11 percent of all foreign purchases.
The survey found that European buyers were attracted to East Coast locations, while Asian buyers tended to pursue homes on the West Coast. Demographics were mixed for areas such as Florida and Texas. Texas was a popular buying ground for Mexican buyers, while Florida found interest among South Americans, Europeans, and Canadians.
Leading the way in foreign purchases by country was Canada, followed by China. Canada accounted for 24 percent of international sales while China accounted for 11 percent, up from nine percent in 2011. Mexico was third with eight percent of sales and India and the U.K. both accounted for six percent.
"Foreign buyers recognize that owning a home in the U.S. has many benefits, both financial and social," said Veissi. "Many purchase property as an investment, vacation home, or to diversify their portfolio. In addition, many recent immigrants view homeownership as an important accomplishment. They believe that being a homeowner is one of many ways they become established in the U.S. and attain stability, security, and a sense of community."
These are not all vacation properties, either. Many of the homes purchased were bought as primary residences. 

July 2, 2012 -- Realty Times Feature Article by Carla Hill 

Optimism Returns to Market

According to the latest HomeGain survey, optimism has returned to the market. The 1st quarter National Home Values Survey found that 37 percent of real estate professionals expect to see home values increase. This is up from 15 percent last quarter. 
 
"Real estate professionals have grown more optimistic regarding the direction of home prices, especially in the states that have been hardest hit in the past few years, like Arizona, Nevada and Florida and also in states that have done comparatively well, like Massachusetts and Virginia." said Louis Cammarosano, General Manager of HomeGain.
A quarter of homeowners are feeling the same optimism. Twenty-five percent reported they expect home values to increase as opposed to 15 percent last quarter.
The survey also found that:

• Twenty-two percent of real estate professionals expect home values to decrease in the next six months, down from 42 percent from last quarter.
• Twenty-nine percent of homeowners expect home values to decrease in the next six months, down from 37 percent from last quarter.
• Forty-one percent of real estate professionals and 46 percent of homeowners believe home values will stay the same in the next six months.
• 77 percent of homeowners believe their homes are worth more than the recommended agent listing price.
• Likewise, 62 percent of home buyers believe homes are overpriced.

Things got political in the 1st quarter survey with over half (52 %) of agent and brokers indicating they "strongly disapproved" and "somewhat disapproved" (14%) of Barack Obama's performance as President, earning him a 66 percent disapproval rating, an increase of two percent in the disapproval rating of agents and brokers surveyed in the first quarter of 2011. 
 
This rating was down 4 percent, however, from the fourth quarter of 2011 when the President had a 70 percent disapproval rating among agents and brokers. 
 
For homeowners, the disapproval rate had fallen as well from the 4th quarter of last year. The survey found that "forty-one percent of homeowners "strongly disapproved" and 15 percent "somewhat disapproved" of the President's performance, earning him a 56 percent disapproval rating. The President had a 60 percent disapproval rating last quarter among surveyed. 

May 31, 2012 -- Realty Times Feature Article by Carla Hill