Community News

The proverbial “spring is sprung” lingo is all around with most of us cheerfully looking forward to warmer and longer days.  It’s also the time that people typically start sprucing up their homes, whether by simply scrubbing the oft-forgotten corners or beginning a full-scale remodeling project.  

The 2013 Cost vs. Value Report published by Remodeling magazine recently reported that due to lower construction costs and home prices stabilizing across the nation, the overall average cost-value percentage has increased for all of the 35 rated projects for the first time in six years.   Nationwide, the best midrange investment is for an entry door replacement (85.6% of job cost is recouped), followed by a wood deck addition (77.3%), and a garage door replacement (75.7%).  Montana is included in the Mountain region, which also comprises Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, and New Mexico, and follows the national trend precisely. As in the past, the replacement/upgrade projects performed better than more complex and expensive remodeling ventures. To further exemplify, a survey from Better Homes and Gardens found that curb appeal is high on the home improvement trend list with low-maintenance exteriors (including colorful vinyl siding) and private backyards (enhanced outdoor living spaces) topping the list. Most of the respondents favored refreshing what is already in place and “bringing out the character a bit more.”  Subtle improvements as simple as fun, new house numbers, refreshed accent trim color, or upgraded railings can give a custom look on a lower budget.  
 
Though often a replacement or remodeling project is solely for the benefit of the current homeowner’s comfort, the upgrades can also be for the sake of preparing a property for sale at the beginning of the traditional heavy selling season.  And according to recent reports from the National Association of Realtors® (NAR) and Fannie Mae, this might in fact be just the right time to put your home on the market.  NAR’s February statistics show “a healthy recovery is underway in the housing sector” and “sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases.”  Existing home sales were 10.2% above the number of sales in February 2012. Fannie Mae weighs in with projections that existing home sales “will grow by an additional 10.5 percent this year, to 5.15 million homes, and by 6.2 percent in 2014, to nearly 5.5 million homes.”  New single-family homes are anticipated to increase by 15.1% this year and 44.1% in 2014. 
 
Our local first quarter statistics as reported to the Southwest Montana Multiple Listing Service (MLS) show a similar positive snapshot when comparing  January-March 2013 to the same period in 2012.  In the Bozeman city limits (Area 1 per MLS), the inventory level of single-family homes was down to 99 available residences for sale versus 136 units the previous year, a decrease of 27%.  In the surrounding Bozeman (Area 2 per MLS), inventory declined 6% to 226 available properties.  Sales in both of these reported areas increased with 80 year-to-date single-family sales in Area 1 compared to 61 last year (31% increase), and 50 sales in Area 2 versus 47 in 2012 (6% increase).  Average prices are also showing recovery with Area 1 reporting $302,009 this year over $279,406 in 2012, and Area 2 increasing 24% to $431,685 versus $347,979. Our forecast is "sunny" days ahead for 2013, with our strong local job growth, pent-up buyer demand, declining inventories, and historically low mortgage rates...all indicators that sales numbers and prices will continue to rise.