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.