Latest Real Estate Trends 2008

As another year winds down, it is nice to look back fondly on what has transpired in the last twelve months and also take some time to look towards the coming year with anticipation and an eagerness for what is to come. The real estate market certainly experienced an interesting year and has made more headlines than it would like to in some instances. However, in the spirit of starting a fresh year, this article will highlight some of the trends that are driving today’s real estate market into 2008.

Condo hotel sales are anticipated to be on the rise again in 2008 as financing is expected to loosen up for buyers willing to put 30% or more down. They are most appealing to those looking for a second-home option versus solely as investment properties.

Property auctions for residential homes are currently the fastest-growing segment of the auction industry. They can prove to be a win-win situation in that the sellers can often find a qualified buyer fast, and the buyers can aptly negotiate with very motivated sellers.

Housing communities are experiencing both growth and change. In the past, golf communities reigned supreme, but the emergence of many other types, including cycling, equestrian, and educational focused, among others, are seeing a surge in interest especially from baby boomers that do not have the same needs and interests as their predecessors.

Location, location, location has always been real estate’s most notable catch phrase, and that shows no signs of changing. There has been a rise in “micro markets” where a small neighborhood within a larger community is experiencing stable and/or rising prices whereas the area at large is seeing decline. Some characteristics of the well-performing micro markets include quality schools, more affluent homeowners, and higher owner-occupied rates.

Expect to continue to see a large selection of real estate “reality” shows on television. There is a natural curiosity for people to see other people’s homes and what goes on behind the front door. The only differences may be that some of the shows will become more reflective of national market changes.

Mainstream mortgage practices including sound underwriting and pricing are back in the forefront of lending. Stated-income loans and 100 percent loan-to-value financing are no longer commonplace. However, help should be on the way for buyers who were relying on subprime and Alt-A financing through Fannie Mae, Freddie Mac, and FHA financing.

“Sweetening of the deal” is on the rise in many places by sellers – both builders and owners of existing homes. Builders can use incentives such as fireplaces or other upgrade items, and all sellers can offer to pay some or all of the closing costs in order to help buyers out.

Green homes have been steadily rising with no end in sight. Anything from nontoxic construction materials to energy-conserving heating systems can help homes to sell faster to those who are seeking environmentally friendly housing. The National Association of Home Builders offers classes on building green, and private companies have begun to offer basic courses for real estate agents, home inspectors, appraisers and those in the mortgage industry.

Technology will be continually changing the feel of the real estate industry in the ways that information is collected and disseminated as well as to how property is marketed. Serving clients from all areas of the map drives these advances on a regular basis.

I hope that 2008 brings you peace, health and prosperity. Thank you for your readership and comments.

Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

Special Thanks to Robyn for letting us publish her article!

Published in the Bozeman Chronicle, December, 2007.

Visit us at http://www.eralandmark.com/ & http://www.StuartandSally.com

Making a better community means construction and lots of it…

Making a better community means construction and lots of it – This is an update from JTL Group on the Downtown construction to keep you informed. Credits below.

 

BOZEMAN— Pleasant weather has settled in around Bozeman. As a result, the Main Street Makeover project has been making steady progress and the attractive new look is starting to emerge as intersections at Willson, Grand, Black and Tracy have reopened.

 

As work is completed and continues to move east along Main Street, downtown sightseers and shoppers are able to use the new handicapped access ramps and colored concrete crosswalks. The other features of the Makeover still to come include new road surface on Main Street and traffic signals.

 

All businesses remain open and fully accessible to pedestrians, parking is still available and pedestrian traffic is open, except for a few areas in fenced work zones.

 

Comments from the public at the weekly update meetings remain positive.

 

“Keeping Wallace open is excellent,” said Gary Gullickson from Heeb’s East Main Grocery. “We’ve had no customer complaints.”

 

Debbie Arkeel, a City of Bozeman representative, added, “There seems to be a lot of pedestrian traffic downtown and it appears to be moving quite well.”

 

“We appreciate the feedback we’ve gotten from both business owners and pedestrians,” said Jackie Flikkema, project manager for JTL Group of Belgrade. “Comments have been overwhelmingly positive. We appreciate that support from our community.”

 

Traffic in Main Street work zones is still moving along one lane traveling in each direction. The speed limit in this area is 25 mph. Drivers should remember that fines double in work areas and to take extra precautions while passing through the construction zone. Safe driving practices including slowing down, taking extra care to watch carefully for workers and yielding to all pedestrians in or approaching crosswalks.

 

Directional signing continues to be used at closed intersections. Until new traffic lights are up and working, stop signs will be installed at affected intersections. Vehicles will not be able to make left hand turns onto Main at those intersections. When Rouse closes, the traffic signal at the intersection will be shut down so drivers are urged to watch for pedestrians crossing there. The signal at Wallace will continue to operate.

 

There will continue to be occasional city and other construction company projects that also impact traffic in downtown Bozeman. All these projects are temporary and unrelated to the Main Street Makeover.

 

Please listen for updates on traffic control plans.

 

Companies involved with bringing the attractive new look to downtown Bozeman include JTL Group of Belgrade, Montana Lines and Bridger Signing and Supply, responsible for coordinating traffic control signs for the project.

 

Construction will take a hiatus during the Sweet Pea Festival and Bite of Bozeman.

 

Weekly progress meetings are held at 9 a.m. in the City Center Best Western at 507 W. Main in Bozeman (Bridger Room). Thanks to the Downtown Bozeman Partnership and Heeb’s for providing beverages and snacks each week. The public is invited to bring any questions or concerns to these meetings.

 

Project updates will be also be published weekly in the Bozeman Daily Chronicle and circulated to other news sources. For more information or answers to specific questions, visit www.jtlbelgrade.com or call Jackie Flikkema at (406) 388-4035, ext. 103.

 

Special Thanks to the City of Bozeman website and JTL Group of Belgrade for the updates on road construction in the Gallatin Valley.

What’s the return for remodeling?

A quick look at the parking lots of the local hardware and home improvement stores in town gives us an indication of the amount of both “do-it-yourself” and “large scale” remodeling projects taking place in this area. Homeowners take pride in where they live, and the “to do” lists for most seem to never get shorter. Whether you are sprucing up your home for resale value or just wanting to increase your current enjoyment, there is information available on which types of projects should provide a better return on your investment.

Each year, Remodeling magazine produces an annual report which compares construction costs with resale values for many of the most common remodeling projects throughout the nation. This is the 19 th year that the report has been published; however, this year’s “Cost vs. Value Report” has seen a number of improvements in the way that data is compiled as well as a change from four U.S. regions to nine. If you would like to view the entire report, it is available at costvsvalue.com for a small fee. There are a variety of factors that actually come in to play when figuring the “cost recouped” for a particular house including the condition of the rest of the home, the value and availability of comparable properties in the immediate area, and the property values as a whole in the surrounding area.

Overall, and as expected, prices for the majority of remodeling projects have risen while the actual dollars that can be recouped when selling the home have declined. This comes as little surprise due to the record breaking activity levels we have witnessed in the past several years in both home sales and remodeling. Even with the current year’s declines, the numbers are still quite impressive. Considering the increased value at the time of resale, a home improvement project may only cost 20 cents to 25 cents on the dollar. According to the report, 75 cents to 80 cents of each dollar spent on a home improvement project are actually recaptured in the form of increased equity.

Replacement projects rate high when measured by cost recouped at resale. One possible reason is energy efficiency in these times of high fuel prices. For example, replacing old windows not only saves money while still residing in your home, but also makes it very appealing to potential buyers when the time comes to sell. However, aesthetics is also a key motivator on choosing which projects to take on. The power of a great first impression is one reason to consider replacing old siding and windows.

So, which remodeling projects should you consider if return on your invested dollars is important? In the Mountain Region, which includes Arizona , Colorado , Idaho , New Mexico , Utah , Wyoming , and Montana , a few key areas stand out. Adding a two-story addition won out as the most profitable remodeling venture, with 88.3% of the cost being recouped at the time of sale, nearly 5% higher than the national average. However, it can also be one of the highest investments dollar-wise, and therefore it can be somewhat prohibitive for many. Performing a minor kitchen remodel, bathroom remodel, or finishing out a basement also were viewed as a good choice in that they all were rated just above 86% for cost recouped, which was slightly higher than seen throughout the nation. Replacing windows, either with wood or vinyl, showed strong numbers at 85-86% which was very close to the national average.

The two projects that finished at the bottom of the list for the Mountain Region are the addition of a sunroom (65.1%) and the remodeling of a home office (60.9%). These numbers were just a bit below the national averages.

Whatever the rationale for undertaking a major project, whether it is for ease of maintenance, beauty, pure enjoyment, energy efficiency or resale, it is certainly a great benefit to be able to recoup the majority of your expenses in the process. As our market conditions have changed, now is a good time to engage a reputable builder to assist you. Always ask for written bids and local current references from other remodeling projects and consult with your local realtor on which projects have the most impact in our marketplace. Using this information, along with choosing a knowledgeable builder and realtor, can assist you in making the right improvement choices and obtaining the very best price when the time to sell does arrive.

Published in the Bozeman Chronicle, June, 2007 by Robyn Erlenbush

Robyn Erlenbush is the owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.

For more information, please see our website: StuartandSally.com

Bozeman Ranked #1 Dream Town by BizJournals.com

This is just fantastic!

Bozeman has been named the #1 ‘Dreamtown’ by Bizjournals.com for its quality of life and business growth, edging out Jackson Hole and Durango, Colorado. Bozeman is a small college town with a sophisticated and cultured atmosphere. Despite its size, Bozeman boasts amenities that larger urban cities would envy. No matter what the season, there are a full range of activities to enjoy, from world-class fly fishing to the thrill of skiing to attending a wonderful symphonic concert.

Whether you are starting up a business, relocating a family, or just wishing to retire or own a second home here: an investment in Bozeman real estate is a sound decision.

Click here to go to BizJournal.com for the America’s Dreamtowns: Quality of Life Rankings!