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Old 09-22-2007, 09:06 AM
 
Location: Great Falls, Montana
529 posts, read 1,728,819 times
Reputation: 245

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Foreclosures are up 115% over last year at this time (NBC News).

Our 325k+ homes here are moving, albeit ever so slowly over last year.
New homes here in the 140k range haven't slowed one bit... if anything, they've increased over last year.

A very good friend in Missoula began building duplexes and apartment rentals in the early 90's... the fact that he is now retired and set for life goes w/out saying.
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Old 09-22-2007, 02:40 PM
 
495 posts, read 365,140 times
Reputation: 96
Giftshopguy wrote
Quote:
A very good friend in Missoula began building duplexes and apartment rentals in the early 90's... the fact that he is now retired and set for life goes w/out saying.
Yea that was a great time to do it. 'course no one knew the future, back in the 80's buying realestate in montana for investment was a sure road to financial ruin.. and many did travel the road - some died along the way, some actually managed to make it thru. Westen montana realestate went from back then being extermely under-valued to it's current completely over valued. People in the 80's were just walking away from their houses, literaly leave it behind, hand the guys to a broker and saying - if there's anything left send me a check. So realestate always goes up in value in the long run, so they say, but they also say we are all dead in the long run. Gold is a good example - historicaly it goes up up up......but currently even with it resent rise it is still not back to it 80's high - even when it does get back to it's old high, you would have held on to it for 25 years, without so much as a penny profit.
Making money in montana realestate has been a no-brainer since the early 90's - so much so that everyone is doing it now - and you know what happens whenever one starts doing it.....? It gets harder and harder to make a buck, until finally it becomes easier and easier to lose it.
With the current mortgage crisis I think the hand writting is on the wall - skip the "It won't happen here" --- Looking at past history, when it does happen here, it will be even worse.
So we'll see, only time will tell who the winners and losers are. Actually you can start counting them now - look in the newspaper under "Public Notices" - ah that's where can read about the forclosers. I wonder if those people know that realestate always goes up in value !
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Old 09-24-2007, 02:13 AM
 
Location: Boulder, Colorado
59 posts, read 207,283 times
Reputation: 106
BZN real estate is in trouble. Getting hard data from the local real estate cabal can be difficult and sale prices are kept secret from the public. One report said there were only 14 residential MLS RE transactions in the month of July for Bozeman, while 1106 properties on the MLS for Bozeman, or roughly equivalent to 6.5 years of inventory. They say 3-6 months worth of inventory is a healthy market. I've talked to homeowners whose real estate agents are recommending that they wait until next year to list their house as the market is so horrible now.

Many sellers have not fully realized the imbalance and prices are still sticky, although are starting to come down slightly. When a seller really needs to sell (relocation, job loss, mortgage rate adjustments), then prices come down. The more that this happens, the quicker we will see a decrease in home prices in Bozeman

Good luck.
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Old 11-04-2007, 01:02 PM
 
Location: Bozeman, MT
1 posts, read 2,573 times
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I agree with Mr. Drain. I sold a Bozeman condo this summer -- it fetched 5.5% LESS that similar units got at the market peak in Aug 2006. That doesn't even factor in improvements to the place. My view is that the correction has only begun and has a good 12-15% to go before we see the inventory BEGIN to level off. At the current sales pace, it would take more than a year just to clear out existing inventory, yet there are homes still being built and a whole slew of sellers who are waiting for the market to "improve" before they list.

The Bozeman real estate market is a classic case of fear and greed dominating market psychology. Too bad for the large handful of realtors who will soon be forced to find a new profession, Sue Frye excepted.
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Old 11-04-2007, 04:39 PM
GLS
 
1,985 posts, read 4,837,801 times
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Quote:
Originally Posted by jimj View Post
For a decent home it's runing about $120 a sqft, as you said depending on finish materiels. I'm betting you could get close to $100 for a lick'em and stick'em house but that would be something along the lines of purely rental grade construction and doing some things yourself.
Everyone has a different definition of a "decent" home, but I can share with you data from two friends who built new homes in the Ronan area during the past year. One person's house ended up with a cost of $140/sq. ft and the other paid $160/sq ft. They used the same builder who does only one house at a time, nothing on spec, is very reliable, and does good quality work. However, I would not consider these to be "high-end" custom homes, and they are certainly nothing like the mansions on Flathead Lake. Based upon this very small sample size, my guess is that a "decent home" is going to be closer to $150/ sq ft than $100/ sq. ft.

I am in process of having some plans bid for a 2 bdr/2 bath with garage to build next summer. When I get estimates back I will share them if anyone is interested.
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Old 11-04-2007, 06:26 PM
 
Location: LEAVING CD
22,952 posts, read 22,462,668 times
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I have to apologize for the "decent" statement, wrong choice of words... Should have been mid range instead of "decent".... I wonder what drove the cost into the $160 range? I'd be curious to find that out. I just talked about this very thing with my neighbor who is a builder and he gave me the $120 figure.
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Old 11-04-2007, 07:08 PM
GLS
 
1,985 posts, read 4,837,801 times
Reputation: 2408
Quote:
Originally Posted by jimj View Post
Since I'm involved in the market in Flathead county right now I can tell you that different price ranges have different things going on......
.

Jim, I defer to your expertise in this area since I interpret "involved in the market" to be a realtor, title company officer, mortgage banker, or some other profession that has a better database than I do. A few things that contributed to the $160/ sq ft were exposed timberframe beams in the living room, top grade appliances, and decorative rock work on the exterior (although the owner is doing all the labor on the rock himself).
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Old 11-04-2007, 11:37 PM
 
Location: Lala Land Montana
83 posts, read 289,129 times
Reputation: 47
In this area I know of a couple of places in town that sold. One went for 200000 and the other for 175000 both were on the market for about a month. One sold his by fsbo and the other did it thru a reall estate pro. Same result, they both got what the asked for. Some of the lots are a bit stupid tho. On one the asking price is 339000 for 150 ft by 90 ft. of rocks. with a small view of the town.
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Old 11-04-2007, 11:42 PM
 
Location: Lala Land Montana
83 posts, read 289,129 times
Reputation: 47
by the way, the house for 200 grand was 850 sq ft and the one for 175 was 1100 sq ft both built around the 1920's. We have high land values because of Yellowstone nat'l Park.
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Old 11-07-2007, 09:09 AM
 
Location: Eastern Oregon
505 posts, read 1,951,456 times
Reputation: 257
I'll tell you why there's a donut hole... the rich are gettign richer, the poor are getting poorer. For many of us families who are "middle class", health care has become a huge cost... right up there with mortgage and food. Then there's energy costs. It take so much money to heat a house, drive a car and so on. There's not much left over. Those who have lots of money can afford big expensive houses. The rest of us are trying to live within our means.

I'd love to move to Montana or Idaho, after moving to Michigan partly to be able to live on one income because we couldn't in Oregon anymore, but you need savings to do that, and right now, our savings are gone from all of these health and energy costs.

I hope the housing costs keep going down out West, but I'm not holding my breath.
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