Friday, May 7, 2010

Baby Boomers Buying in Bozeman, MT

According to the Center for the Rocky Mountain West (CRMW), Baby Boomers are shifting the traditional demographic pattern from that of retirement to warm climes to that of retirement to the cooler, mountainous regions of the Rockies, particularly Wyoming and Montana. This, in turn, is shifting the average age of the population of these states from a relatively younger to a significantly older average age. Baby Boomers are retreating north, buying homes and other types of real estate in Rocky Mountain cities, enjoying the relative quiet and freshness of the Rockies, and loving it!

In late 2007, The Center For The Rocky Mountain West, stated that by 2030, Census Bureau predicted that Montana would rank fifth and Wyoming third in the nation for their over-65 populations.

Montana set up a trust fund in 2007 so the Treasure State’s older population would have health care access and other key services, even in Montana's rural regions.

According to Charlie Rehbein, chief of the Montana Aging Services Bureau in 2007, "We’ve done projections and seeing our elderly population doubling in the next 10 to 15 years...I think it’s going to have a tremendous impact."

According to the Center for the Rocky Mountain West in Missoula, Montana, "One challenge is that the two states already have very low unemployment, around 3 percent, and could face a real labor crunch when the oldest baby boomers hit 65 in 2011."

Larry Swanson, an economist and director for CRMW stated in 2007, "We haven’t seen anything yet, because the exodus has not really begun out of the work force. That’s going to begin in two or three years.’’

Due to the 2008 economic crisis, Rehbein's and Swanson's predictions may be forestalled another few years, but, nonetheless, it’s been my experience in the last 6 months that Baby-Boomers are visiting and purchasing southwest Montana real estate as evidenced by the uptick in late 2009 and early 2010 of both residential and luxury home sales.

In just the past 2 months I’ve served 6 out-of-state Baby Boomers choosing Bozeman not as a second-home town but as their primary hometown because of Bozeman’s quality of life. Bozeman is a health-conscious, University town, appealing to artists, outdoor recreationists, and entrepreneurs. And, Bozeman offers a state-of-the-art health-care facility ; excellent, multifarious dining; a western rodeo; many art galleries; house to a regional, summer arts and crafts festival; a symphony and opera; a community committed to its people, healthy living, and so much more.



Baby-Boomers are exploring many Rocky Mountain cities but Bozeman, Montana is winning their hearts and souls.

Photos courtesy of the Downtown Bozeman Partnership.

By Tauyna Fagan, Sales Associate, ABR, GRI
Prudential Montana Real Estate
2001 Stadium Drive, Ste. A
Bozeman MT 59715
Phone:(406) 556-7744
Cell:(406) 579-9683
Email:taunya@taunyafagan.com

Wednesday, April 28, 2010

The Big Sky Winter Season Wrap up 2009-2010….

For those of us who have watched and participated in the Real Estate arena for 15-20 years or longer, the events of the last 4 years, the rapid run up in values followed by a subsequent and precipitous decline and realignment, were less surprising than the recognition that, despite instantaneous MLS data, weekly Case-Shiller index reports, appraisals, game theory based negotiations and USA Today headlines, we have to own up to the fact that some cycles just can’t be controlled. At least not yet.

Staying at the Lone Mountain Ranch for a week, enjoying three fabulous meals each day, soaking in the spa, visiting with family and new friends, is likely to be both relaxing and to expand one’s waistline…so feigning surprise that the dial on the scale has moved is predictable, yet mostly theatrical. It’s going to happen.

The factors that contributed to the “bubble” in Big Sky mirrored similar factors that swept across other communities and markets around the country. Essentially too much money chasing too few assets…and, while, of course, there were many interrelated and unrelated elements that economists and analysts will study intensely for years to come to try to understand and learn from with the goal of taming these cycles in the future, the perverse reality might just be that not only will these cycles continue to be repeated occasionally, but that its these cycles that create the environment for vibrant markets.

Given the refinement of modern day economic theory and the availability of quantitative computing power, which allows for complex market evaluations, it would, of course, be more comforting (but less thrilling) to have the ability to more accurately and precisely project future outcomes. Derived from the mathematical foundations developed to describe and comprehend scientific principals of the physical world, Physicists can, to a large extent, predict the behavior of planets, elements and space. However, as we are learning first hand, economists and real estate market followers have to rely on a different set of parameters.

So what does any of this to do with the Big Sky real estate market?

Well, the Big Draw to Big Sky is its natural beauty and out doors. Sure, its easy enough to get to, and getting easier all of the time with additional flights, the expansion of the airport to accommodate more and larger planes. The skiing is unbeatable (anyone taste that fresh powder on March 26th?). Fishing access is wonderful, with endless hiking, great summer concerts, top-of-the-line restaurants. The park (Yellowstone National Park) is so full of sights that new discoveries are everyday occurrences. We don’t need air-conditioning, the big horn sheep licking salt of the roads still make even locals slow down to watch, and relaxation seems to come naturally.

Yet, Big Sky defies quantitative analysis for many. Which isn’t to say that no information is preferable to good information…it’s just that an analysis of the Big Sky real estate market is more akin to the subtlety associated with biological systems, combined with a hint of a Zen like acceptance that you have to be here to really experience it, than an analytical scientific approach to predicting risk and reward.

And what does that mean? Well, despite the limitations in the lending arena, there are a lot of green shoots emerging. Lenders may have provided too much oxygen as stimulus helping to create the “bubble”, and then too quickly shut off the oxygen forcing that same bubble to contract. Still, like any healthy ecosystem, the participants have adapted. Exchanges between sellers and buyers are underway and increasing. With pricing at less extravagant and artificial levels, the values seem more intuitive, and market activity in the Big Sky thrives.

Despite many predictions and studies to the contrary, 21 years after the “devastating” fires in Yellowstone National Park, the forests there are healthier than ever. And even with normal and unavoidable cycles, the miracle of life continues. Be a part of it.

By Eric Ossorio
Broker
Prudential Montana Real Estate
55 Lone Peak Drive Ste. 3
Big Sky MT 59716
Eric.ossorio@prumt.com
p. 406-995-4040


Wednesday, April 7, 2010

Bozeman Trail System

One of the greatest parts of the community in Bozeman, Montana is it’s trail system. The Gallatin Valley Land Trust (www.gvlt.org) has worked since 1991 to create and improve Bozeman’s trail system to provide trail access from Bozeman’s historic Main Street to the mountains both to the north and south. Encompasing over 50 miles, the trail system winds through community neighborhoods and allows people to explore Bozeman.

Actively used, the trails vary from level, for a leisurely walk, to steep, offering a great hike. Used year round, they provide great access for foot traffic, snowshoes, cross country skiing and bicycles. Throughout the winter a pair of Yak-trax on your shoes will get you most places!


Some trails, like Peet’s Hill, in the center of town offer off-leash walking for dogs. Peet’s Hill is a very popular destination and a busy one too. Just a quick trip to the edge of town, the “M” and Drinking Horse Mountain offer a more rigorous hike. http://www.gvlt.org/images/trails_maps/BigMap.jpg


Whichever trail you choose, they each provide you an opportunity to enjoy the amazing mountain views we are blessed to have, surround yourself in wildlife and get great exercise.

Posted by Kristen Hoell, Broker, CRS, GRI, ABR
1925 N 22nd Ave Suite 201
Bozeman, MT 59718
cell: 406-580-0245

Crust Cruising

Well you know spring has sprung here at Ross Peak Ranch, in the heart of the Bridger Mountains Snow Belt, as the surface of the snow has stiffened with the diurnal warmth and freezing of the coming spring, making the snow supportable for the skinniest of skis (the Nordic racing ski). With the skis already waxed and propped against the wide plank siding boards of our reverently called ski shack, we are ready to ski as the conditions ripen. These conditions only occur in the spring and last for a short period, as the snow goes through its transition from winter powder to spring runoff. This is the powder days of the Nordic traveler, Crust Cruising!! When the gorgeous rolling alpine meadows covered in a smooth almost sensuous blanket of frozen snow allows you to skate effortlessly over the terrain, laced with the sub alpine firs and pines. What a special time of year!! With a quick phone call to Bohart Ranch Cross Country Ski Center, to let them know we will be skiing through there today, we can then link the alpine meadows of our home with endless ski terrain in the Bracket creek and Bridger creek drainages.



What a special day. Today the snow gods smiled down upon us here at Ross Peak Ranch, laying down a dusting of powdery snow that not only enhanced the skiing pleasure of the spring crust, but added to the visual effects of sunlight reflecting colors off the newly fallen snow crystals. The rolling meadows were smooth and silky under our skis, as we glided along admiring the lightly dusted firs and pines. WE are now experiencing the cross roads of seasons with the arrival of spring and the ending of winter as the two snow conditions powder and spring crust blend together for superb skiing.



By Janet Kravetz, Broker, CRS, GRI
cell: 406-580-7676
Prudential Montana Real Estate
2001 Stadium Drive Ste. A
Bozeman, MT 59715

Tuesday, March 30, 2010

Spring in Montana

It’s spring in Montana and I am so excited! Spring is usually the only season that most of us can bring ourselves to leave Bozeman and we are all just returning from our spring break vacations. There is something so great about stepping off the plane to enjoy the fresh mountain air, bright blue skies and spectacular mountain views – it is always good to be home. Our snow is really melting with all the above normal temps we have been experiencing. Even our real estate market is showing signs of thawing. Coming off one of our tougher years in the luxury real estate market here, we have seen 4 sales close in the first quarter with 2 additional properties pending. This tracks us significantly ahead of last year’s luxury home sales.

With nearly 80% of all real estate buyers beginning their search on the internet, we keep a close eye on our Prudential website (PruMt.com) analytic reports. Our latest statistics show that inquiry traffic on the Fine Homes section of our website increased 20% in the last 30 days.

We are still seeing buyers coming in desiring our amazing Montana and specifically Bozeman lifestyle. Those buyers could wait to see if we have “bottomed out” yet but is it really worth missing our amazing summer coming up when any “wait and see” savings (if any) should be recovered in the next few years. Most sellers are acknowledging the new market realities and have brought prices into line with buyer’s expectations. There are numerous values out there for the savvy buyer.

Check out this beautiful piece of the Montana experience in Saddle Peak Ranch – what a view of the Bridger Mountain Range from the exquisite home and extensive outdoor living spaces.


























I’ll see you outside!




Carla Dingman
Broker, CRS, GRI, ABR
carla.dingman@prumt.com
cell: (406) 570-9199

Monday, March 22, 2010

Prudential Montana Real Estate's Fine Homes Group Visits The Yellowstone Club

Members of Prudential Montana Real Estate's Fine Homes Group toured the Yellowstone Club last week to learn more about the recent improvements the new owners and management have made to the Club. Prudential Montana Real Estate's Fine Homes Group frequently tours properties in the luxury home market in Bozeman and Big Sky to better assist clients with their luxury home needs. http://www.yellowstoneclub.com/
Fine Homes Group members include (from left to right)-Don Pilotte, Lisa Collins, Carol Lister, Heidi Parkes, Mike Basile, Mary Suit (marketing), Kristen Hoell, Janet Kravetz, Peg Potter and Carla Dingman

Friday, March 5, 2010

Big Sky—Big Panache

So… did you see the night sky the other evening: so clear and dark, studded with millions of stars and planets? Then watch as the full moon inched its way into the firmament reflecting so much light off of the snow that one might have been tempted to venture out for a midnight cross country ski or snow shoe outing….?

The Big Sky Snow Report described the conditions the other day in one word: “Bluebird.” Just about sums it up. March usually has plenty of those Bluebird days.

Many surprises await the visitor to Big Sky. A few surprises fall into the “whoops” pile: Roads can be icy; the snow is pretty deep; it’s a good idea to have a reservation at the Lotus Pad before you show up; tree wells and snow machines don’t mix well; ski patrol volunteers are awfully nice; the clinic at the base is larger than imagined….

Yet, most surprises fall into the “pleasant surprise” category. Top of the list is usually the awesome beauty of the Valley suddenly exposed as you head west onto the Spur Road by the Conoco with Lone Mountain majestically positioned at the far end, at dawn illuminated like a giant fiery red pinnacle and at dusk like a brooding exclamation point back-lit by the setting sun with that neat contrail wisp barely holding onto the peak. Next is usually the realization that there are no lift lines (except for the Tram on a Bluebird day, of course…), and that skiing laps here adds up to more vertical in a few hours than a week at most other ski areas.

Then, of course, there is the curiosity that some lucky folks live here, and others own property here which then leads to the question: What is the market like?

Glad you asked.

Based on MLS reports, 392 properties are for sale of the Home, Condo or Town home variety. Pricing varies from $58,000 for a studio condo at the Mountain, to a De-lux ski in ski out spread at just under $8 Million dollars. About 200 of the properties are priced at under $600,000. 100 or so of the properties are priced from $600-1,200,000 and the rest are priced at over $1,200,000, in clustered increments.

On the vacant land side, there are 184 parcels available. 150 residential parcels are priced between $100,000 and $1,500,000. 34 are priced from $1,500,000 to $20,000,000 at the very top end, including development tracts, as well as larger spectacular residential estate size pieces…some the size of small municipalities.

There were about 120 home/condo/TH sales last since January 2009 from $62,000 to $4.2 Million, and 20 vacant land sales from $170,000 to $1,200,000, likely in response to the seasonal availability of quality builders and more modest building costs, as well as the opportunity to buy that adjacent parcel for a little extra space and privacy.

And that was in a very slow year.

So, what about the real deals, you know, the “steals”?

To paraphrase Mark Twain’s comment about the erroneous report of his death: The reports of distress sales and steals, while notable, are greatly exaggerated. While most pricing across the board has adjusted downward from the recent highs, less than 2% of inventory falls into the bank owned/distressed pile: fewer than a dozen properties. Some may be fantastic opportunities, and a positive sign that the market is responding by absorbing the inventory. Take a look: http://prumt.com/property/feed/Montana/Big-Sky-Area/All-Types/nomin/nomax/pick-feed/All-Cities/All-Squarefoot/All-Acre/All-Bed/All-Bath/?subType=any&daysOnMarket=all-days

The corollary is that many buyers are finding solid opportunities and great deals on non-distressed property as adjusted pricing stokes sales, sellers have readjusted expectations and the slower volume of transactions continues to favor Buyers at the moment. Nonetheless with close to a 25% market absorption rate, the amount of quality inventory coming on the market is becoming a trickle and opportunities will have a decreasing shelf life. The clamor to spur rising pricing may not yet be a threat, but the variety and selection is dwindling.

So: ski the tram, enjoy the sun, fish in the rivers, snowmobile in Yellowstone Park, take in a Big Sky Institute lecture on Bear or Wolf or High Temperature bacteria flourishing in the hot pot and geyser basins, skin up into Beehive Basin on your Nordic skis, enjoy diner in or out with your family, but don’t dilly-dally.
There are plenty of destination resorts that offer an abundance ways for you to spend your money. Big Sky is a little different in that it also offers you so many ways to spend your time. And time is all you really have anyway.

By Eric Ossorio

Broker
Prudential Montana Real Estate
55 Lone Peak Drive Ste. 3
Big Sky MT 59716
Eric.ossorio@prumt.com
p. 406-995-4040