I am constantly astounded by the diversity of the communities in Montana, and at the same time the interconnectedness of our state.  As the economy rebounds, the ripple effect has grown from east to west.  The oil industry continues to supply employment opportunities for many Montanans across the state.  I thought it might be of interest to take a look at the major individual markets and see how they each fared in 2012.  The following housing statistics were provided by Scott Richard of Montana State University Billings and delivered at the University of Montana, Bureau of Business and Economic 2013 Economic Outlook Seminar.  

The number of properties sold throughout Montana showed a healthy increase in 2012 over the 2011 statistics.  Though not at peak numbers, all markets are reporting nice gains in sales while experiencing declines in inventory levels.  Sales of single-family homes in Gallatin County for 2012 were reported at 1,079, which was an 18% increase over the prior year.  Gallatin County’s median single-family sales price was at $253,750 for 2012, which is a 7% increase over 2011.  The average sales price was $335,700 – the highest county in the state.  Finally, days on market numbers were down in many markets, including ours, with a 10% decrease to 101 days for Gallatin County.

 
Billings leads the state in the number of single-family sales at 2,001, increasing by 18% from the previous year.  The median sales price increased by 7% to $197,500 with an average of $220,600.  The market in Yellowstone County is fueled by the oil and gas industry, retail trade, and a strong medical and college community.  Housing inventory levels are far below normal with the average days on the market at 58, in comparison to the state’s high in Flathead County at 249 days.  
 
The Flathead marketplace has seen a very nice increase in the number of sales, up 20% to 1,238.  The median price is up 3% to $185,600, with an average of $265,700.  The luxury and second home lakefront properties took a strong correction in the past 4 years, but reports of increased buyer activity, both US and Canadian, abound in early 2013.  Basic sector jobs in the lumber and manufacturing industries are being replaced with healthcare, education, and regional trade.  
 
Helena saw the highest increase in the percentage of sales, up 24% to 779.  However, their median sales price had the least percentage gain up 1% to $189,450.  The Missoula market also showed a strong increase of 23% in sales to 962, with only a 2% increase in median prices to $209,450.  Great Falls has the lowest median of the major markets at $155,500, up 4% from 2011.  The number of sales was up 12% to 897.     
If we were to look at one common theme for better housing sales, it is the improved employment base.  More jobs and the stability of those jobs translate into more housing sales and new construction starts.  Unemployment data via the Montana Department of Labor and Industry Research and Analysis Bureau has been published through the end of 2012.  Montana is ranked #14 nationally for the lowest rate (seasonally adjusted) at 5.8%.  The national average was reported at 7.6% with North Dakota #1 at 3.2% and Nevada and Rhode Island tied for last place at 10.2%.  Within the state, Gallatin County reported 4.9% and Park County 7.1%.
 
Overall, 2012 was considered a much improved year for the state of Montana with some strong income growth, evidence of energy activity throughout, and real estate sales increasing.  There are several other leading indicators that offer Bozeman continued optimism.  Bozeman Yellowstone International Airport posted a record number of passengers flying both in and out in 2012 at 867,117. This is an 8.9% increase over the previous record-breaking year in 2011.  Enrollment at Montana State University in the fall of 2012 set a new campus record with 14,660 students.  An additional figure to share is the number of single-family building permits issued by the City of Bozeman.  In 2011, there were 70 permits valued at $14,801,217.  This number jumped to 146 permits with a valuation of $36,460,011.  There were no multi-family permits issued in 2011, yet in 2012 there were 3 duplex permits for 14 units and 9 multi-family permits for 21 units.  All indicators are that 2013 will follow similar trend lines for Bozeman and Montana.