Cold Weather Putting the Freeze on Sales

It appears that the cold and icy weather is adding to the continuing trend of dismal sales in NW Montana. It will be a few more weeks until the January numbers are in, but it would appear that we are lagging behing 2008 numbers anywhere between 30-50%.

The good news is that inventory is beginning to dip a bit. I've been trying to spread the word to all homeowners that they should only list their property if they abosolutely have to sell. It boggles my mind that there are still listings out there that are 'fishing' for top dollar offers in this market.

There also seems to be limited activity in listing and showing property that would otherwise be active due to the snow and ice left over from last month's storms. I think we are all hoping that the market will begin to thaw before the ice!

Annual Report Summary

The Northwest Montana real estate market succumbed to the national trend and plummeted in 2008. The market showed relative insulation throughout most of 2007, but could not hold out last year. Total sales volume for 2008 was approximately $546 million, down 41% from 2007. Transactions also showed a drastic drop of 36% last year compared to 2007. This downturn comes on the heels of a historic and unsustainable real estate boon that lasted for several years. While the recession and a down market will certainly be painful in the short term, prices have begun to realign, and interest rates for qualified loans have reached extraordinary lows.

One thing that history teaches us is that market cycles are healthy and should be expected. The complicated aspect to these cycles is their unpredictability. Some analysts predict a rebound beginning in the 2nd or 3rd quarter of 2009. While signs of recovery are yet to be seen, we can be assured that there will be continued incentives over the coming months to entice buyers back into the market.