Community News

After the 2010 year-end numbers have been tallied and analyzed, Big Sky has reason to celebrate the positive gains that have been experienced in the real estate marketplace.  Statistics generated from the Southwest Montana Multiple Listing Service (SWMLS) report that there were 52 single-family homes sold in Big Sky in 2010, which is a 27% increase over the 41 comparative sales in 2009.  The average sales price was $735,606 and the median was $582,500 compared to $855,234 and $550,000 in 2009.  Condo/ townhome sales showed an even more remarkable increase of 96 closings in 2010 versus 61 in 2009, a 57% increase.  The average sales price was $315,454 with a median of $230,075 compared with $322,599 and $247,500 in 2009. The sales numbers for 2009 in both categories were almost identical to those in 2008, so the increases are certainly a welcome change.

Those who work in the Big Sky real estate market report that showings and general activity have been increasing.  Many buyers who have been holding back are now ready to make purchase decisions, begin their part-time residency, and start enjoying all that this phenomenal area has to offer.

Other exciting news is that new construction starts are moving at a very healthy pace. The Yellowstone Club has 17 home projects underway. "It's interesting having these homes starting in the winter," said Charlie Callander, Senior Vice President of Marketing and Sales for the Yellowstone Club (YC). "It indicates serious interest on the part of the owner to have a home here. It shows a lot of motivation."  Callander states that YC has definitely been seeing more activity in the construction arena. For the first time in almost four years, the development of a new subdivision, "American Spirit," is underway. The new 35-home development currently has two models under construction.  Six or seven new projects are also on the drawing boards to begin construction at the Yellowstone Club once the snow melts this spring.  To further illustrate just how well YC is now doing, Callander reports that 55 properties are either in escrow or have closed for almost $200 million in new sales from mid-July 2009 to the present accompanied by an additional $12 million in membership sales.  The Yellowstone Club was just featured in the February edition of Executive Golfer magazine with the headline “The Spectacular Montana Club Reclaims Its Position As One Of America’s Foremost Private Club Communities”.

The Club at Spanish Peaks currently has eight new homes under construction. Six more homes are in architectural review, slated to undergo construction this spring.  Martha Johnson, President of Rivers to Peaks Realty, said that starting in the fall of 2010 she's seen increased construction activity at Spanish Peaks, and she credits that to the lowered rates for contractors and architects and renewed interest from out-of-state buyers.  Additional statistics of interest which she offered are that transactions in 2010 were up 122% over 2009 with a dollar volume increase of 80%.  There have been 17 properties sold in the last 8 months, and tours are up 30% year-to-date in 2011 over 2010.

Often real estate sales are correlated with travel/lodging figures.  Peter Yesawich, a leading expert in the field of travel and leisure marketing research, recently released some data referring to Americans having a “New Frugal” outlook toward purchasing behavior.  He feels that a newly found sense of resourcefulness and an eye for value is increasingly characteristic.  This bodes well for Big Sky because our prices are very reasonable and attractive in comparison to other resort markets.

As mentioned in previous articles, Big Sky is often in the spotlight of national media, and it frequents resort/recreational Top 10 lists on a regular basis, but the good press is always welcomed.  There will undoubtedly be increased interest in the area when the 2011 Asia-Pacific Economic Cooperation (APEC) comes to a town near the end of May.  There will be representation from 20 APEC partners which are top economic international forces.

United States Trade Representative, Ron Kirk, touts “The American West has always been a place of limitless possibility.  Bringing the APEC Trade Ministers to Montana will broaden our horizons both literally and figuratively.”

So how important is snowfall to our economy?  Simply put, it is essential. Taylor Middleton, Big Sky Resort’s General Manager, states that “The snowpack is more than 110% of average and 150% over last year at this time. Reservations forecast for winter were up substantially in October.  The good snow has been an added bonus making business even better.” Skier visits are up about 15% season-to-date, and forecasts indicate this will continue through March. Interestingly, approximately half of the increase this year is the local/ drive market, and half is the destination/ fly market.  “Our busiest days so far this season have included almost 5,000 skiers per day,” notes Middleton.  If you combine skiing at Moonlight Basin, Spanish Peaks, and YC, there could be an additional 2,000 to 3,000 skiers added to the community total.  Even more good economic news is that this is an especially long season for Big Sky which closes on Easter, April 24th.  Middleton says, “The visitation and business level is approaching what it was before the economic downturn.  It is possible we will exceed our best year ever if the trend continues through April.”

There are many reasons for Big Sky’s success; excellent snow, businesses investing and improving the guest experience, attractive pricing and promotions, a big focus on destination marketing including the community-supported “Biggest Skiing in America” campaign, and momentum.  Big Sky is a fantastic resort destination for Montanans and guests from around the nation.  The community is building on almost 40 years of experience in providing world-class recreation and hospitality.

I firmly believe that “as goes Big Sky, so goes Bozeman”, our markets are intricately entwined. Clearly, Big Sky was responsible for much of the economic success our region experienced from 2004 through 2007. We are now seeing “out of the area” investors return to the resort marketplace with renewed confidence. This is real estate as it should be, with buyers purchasing to hold their property long-term, as a legacy - one that they will treasure and keep in their family for years to come.