Gillian Swanson's Livingston Montana Real Estate Blog » Financing

January’s done & things look good!

Gillian — Fri, 08 Feb 2008 20:45:22 +0000

Realizing that first month of 2008 has already flown by, I decided looking at market data comparing January 2008 to the previous January. The results show a market that is both stable & busy.

At the end of January 2007, there were 191 residential active listings in Park County. 12 homes sold during the month, and 33 houses went under contract – that means that 33 buyers came to an agreement with 33 sellers. For the same category at the end of January 2008, there was a small increase in active inventory to 202, the number of closed sales for the month was 12, and 15 homes went under contract.

Within the city limits, the residential inventory has remained stable with 70 single family homes currently on the market versus 71 at the end of January 2007. There has been movement among the price points with less inventory now available for sale under $250,000, and the most noticeable change occurring in the $250,000 – $300,000 range with 14 properties now in this price range versus only 5 a year ago.

The land data for Park County shows that at the end of January 2007, there were 252 building lots or vacant land parcels available, 8 properties sold during the month, and 34 listings were under contract. January 2008 shows an increased inventory to 309 active listings with 5 sales for the month and 45 pending transactions.

So, despite all the national gloom & doom about the housing market, Park County is in excellent shape, and I am anticipating that we will have a busy Spring, with a busier Summer. My phone is ringing, with enquiries coming from all over the country. People are asking me to look for different kinds of property in different price ranges, knowing that they will be out here shortly. Regardless of what is going on in the rest of the country, here in south west Montana, we have what most people want: space, safety & great beauty & natural resources.

At the 33rd Annual Montana Economic Outlook Seminar held recently in Bozeman, economist Paul Polzin assured the audience that Montana’s economy is likely to be resilient to a possible recession: he went on to say that Montana’s basic industries such as agriculture, energy & precious metals are seeing record-high prices in the world market
“That’s why we are so optimistic about Montana’s economy,” said Polzin.

Add to all of this good news the fact that interest rates for a 30 year fixed were at 5.625% at the beginning of this week, and that there are still many exciting financing options available to buyers in Park County, such as Rural Development and Montana Board of Housing loans.

Please call me with any financing questions, or to make a start on buying or selling….I’m here to help!

Fed funds interest rate cut.

Gillian — Tue, 22 Jan 2008 22:27:56 +0000

Even although I had a pretty good idea that the Feds were going to cut interest rates, I was shocked this morning when I turned on my computer and saw the news that they had made an emergency 0.75% rate cut, the largest move in a quarter century.

My first thought was that this may panic people, and actually make things worse. Those who have been doing their best to ride out the doom and gloom predictions about a recession — whether it be a home buyer in Livingston Montana or a stockbroker in New York– might perhaps think that things are actually as bad as people are saying.

But the following is a statement by Lawrence Yun, chief economist of the National Association of RealtorsÃ‚Â®, on todayÃ¢â‚¬â„¢s action by the Federal Reserve Board:

“TodayÃ¢â‚¬â„¢s 75-basis-point cut in the Fed funds rate to 3.50 percent is a very good step in the right direction to boost the economy and send a clear message to both the market and to consumers. This strong rate cut will help lower mortgage interest rates and lessen the burden of adjustable-rate loans that are resetting in the current environment. It also could help stimulate business investment in the wake of market uncertainties. We commend the Federal Reserve Board on its bold action, but at the same time we urge it to keep a close watch to see if additional action is needed.”

So, while no one can truly say whether or not we’re on the brink of a recession, the facts remain that for the average buyer, the huge selection of homes currently on the market coupled with interest rates lower than we have experienced for quite some time make it an absolutely incredible time to buy a home.
Speaking of homes, there’s a great new listing coming on the market in a week or so down in Paradise Valley, in the Elbow Creek Estates. It’s a beautiful two bedroom one bath home on twenty beautiful acres, and will be listed lfor $449,000. With some of Montana’s most spectacular views from the wrap around deck, this property is going to attract a lot of attention. Call me, of course, if you’d like more information.

Scared of shopping for a home loan? Read this!

Gillian — Thu, 17 Jan 2008 02:38:02 +0000

While finding “just the right home” is paramount for homebuyers, financing “just the right home” is certainly as important. There are still many options available even in the aftermath of the sub prime mortgage crisis of last year.

For instance, Bank of the Rockies has some stellar packages for first time buyers at the moment: there is a down payment assistance program up to $20,000, a loan guarantee from the local USDA Rural Development office, and $5000.00 in grant money to assist homebuyers with closing costs. All three of these programs can be combined to assist you with your first time home purchase. These programs, coupled with the current low interest rates, make it a great time to shop for that first home. Contact Brad Hanson or Loren Zahn at Bank of the Rockies 406-222-4628 for details of these programs.

Working with a skilled, reputable mortgage professional can make all the difference in the home buying process, and we are fortunate in Livingston to have numerous choices of top quality banks & mortgage companies. I would be happy to provide additional names and phone numbers when you are ready to meet with a lender…
I love to work with first time buyers! If you are thinking of purchasing a home or condo and have questions, email me at gillian@eralivingston.com

I forgot to post photos of the Del Mar project when I last wrote, so here’s The Spruce, a fourplex of business condos.

Here’s the main reception area of The Spruce:

.. and here’s one of the back of the building, showing that things at The Point at Del Mar are still very much a work in progress, which means…things are still very easy to customize!