Ted Turner puts his money where his heart is…

By SCOTT McMILLION Chronicle Staff Writer

GALLATIN GATEWAY – Ted Turner says things are getting better in the world, but they aren’t good enough yet. So he’s aiming to fix a few.

ERIK PETERSEN/CHRONICLE Ted Turner looks over some of the vast expanse of land he owns at Spanish Creek on which he raises bison for his newest venture, his chain of 55 Ted’s Montana Grill restaurants throughout the country. Compared to a decade ago, fewer people live in utter poverty.

He wants to cut that number ever more. Free trade among nations will help do that, he says, so he’s trying to get his fellow Democrats to understand that.

And while he sees global warming as a growing risk, more people are aware of it, partly because of the environmental groups he funds.

“You’re talking about a lot of people who are upset about it,” Turner said in a recent interview at his Flying D Ranch. “And I think we’re going to make them take a swing and try to do something about it.”

 

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Conservation in the West

By SCOTT McMILLION Chronicle Staff Writer

Region’s natural beauty draws newcomers, bolsters economy, triggers bitter battles

ERIK PETERSEN/Chronicle A deck on the main lodge at the Sun Ranch overlooks a sweeping view of the Madison Range. “Henry David Thoreau didn’t build a trophy home.”

Jim Barrett, Park County Environmental Council

Thanks to modern four-wheel-drive vehicles, you can live at an elevation of 7,000 feet and still be a soccer mom.

“It’s as much of a revolution and a change in the demographics as the horse was for the Plains Indian,” said archeologist Larry Lahren, who is also a Park County commissioner. “It’s been a revolution in terms of people moving into this area, particularly the hinterlands.”

 

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The Ease Of Universal Design

Aging gracefully is at the forefront of many people’s minds. So how does that have any tie-in with a real estate article? Actually, more than you might think due to a concept called Universal Design. A relatively new concept that has appeal to a wide range of consumers, Universal Design is essentially adding accessibility to a home for people with physical limitations (whether they are currently present or simply potential in the future) in a non-stigmatizing and attractive way. This allows homeowners to “age gracefully” in their own homes when their health status changes.

Choosing a residence is a decision that homebuyers don’t take lightly, but oftentimes the choice may be somewhat short-sighted. A home’s layout and design ultimately decide how someone will use and enjoy the home after the purchase, and even how long they will be able to stay in the home. Universal Design is a user-friendly approach to designing homes where people of any culture, age, size, weight, race, gender and ability can live comfortably today and in the future. A home’s design and amenities are modified to take into consideration physical needs that require special accommodations. This includes a wide range of physical issues including poor eyesight, bad knees, or the need to use a walker or wheelchair, just to name a few.

While homes can certainly be retrofitted once the particular accommodations become necessary, there are definitely advantages to planning ahead while building a home to implement some general design features. In fact, it’s estimated to be about one-third less expensive to add Universal Design features while building a home versus remodeling down the road. Additionally, architects and designers who are on board with the concept can integrate many of the features to be nearly “invisible” in a home instead of standing out as eyesores. Incorporating the principles from the ground up can eliminate many of the limitations that accompany traditional home design and construction.

There are seven guiding principles of Universal Design features according to the Universal Design Alliance which are as follows:

1. Equitable use – the design is useful and marketable to people with diverse abilities and will not disadvantage any user. For example, controls mounted on the front of a range to allow wheelchair accessibility.
2. Flexible use – the design accommodates a range of abilities and preferences including choice in methods of use or adaptability to the user’s pace.
3. Simple, intuitive use – easily understood design without regard to user’s experience, knowledge, or language skills.
4. Perceptible information – the design communicates the necessary information effectively to the user. An example is a doorbell accompanied by a flashing light to alert a user with limited hearing.
5. Tolerance for error – the design minimizes hazards and adverse consequences of unintended actions.
6. Low physical effort – the design can be used efficiently and comfortably.
7. Size and space for approach and use – adequate space is provided to approach, reach, and use an area regardless of the user’s physical size, posture, or mobility. A simple example is doorways that are wide enough for wheelchairs or walkers to easily navigate.

A prime example of Universal Design is right here in Bozeman in the form of The Knolls at Hillcrest which is Montana ’s first active adult lifestyle community, designed for those 55 and older. Accessibility and the principles of Universal Design have been fully utilized throughout this project. The home features can be fully enjoyed by owners now with further peace of mind when planning for the future and changing needs. Just a few of the design features are one-story living, wide interior doors and hallways, lever style door handles throughout, and lighting considerations including ample natural daylight and many adjustable lighting controls.

Most people prefer the thought of growing old in the comfort of their own homes versus being relocated to some type of assisted living facility. With 25% of the population 50 years or older, and with the greatest amount of wealth being possessed by this demographic group, we could certainly see a shift in people remaining in their well-designed homes with assistance or care coming to them instead of moving to institutionalized living situations. As life expectancy continues to rise along with improvements in the medical field, the concept of Universal Design should continue to thrive.

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.

Published in the Bozeman Chronicle, May, 2008.

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

State of the Market – Bozeman, Montana

As we reflect on last year from a real estate perspective, the general consensus from those in the building, lending, real estate and related industries is relief that 2007 has come to an end. The local market in general saw lower numbers of sales, and yet several segments of the market experienced higher than average sale prices from the previous year. Marketing conditions and industry sentiments, so far through January 2008, seem guardedly optimistic, with many real estate firms and title companies showing an increase in the number of closings and pending transactions from 2007. Property showing activity has increased dramatically since the holidays, and more importantly buyers are writing offers, and sellers are accepting those offers. Though some buyers are still waiting for prices to go lower, market timing is very tricky, if not impossible, to execute perfectly in the real estate business. Many buyers are finding that lower interest rates coupled with seller incentives to discount prices, offer upgrades or participate with interest rate buy-downs, make this a very attractive time to buy. This renewed market activity is a “key indicator” to the return of a more stable and balanced market. Of special note, the Big Sky market has experienced increased showings and a renewed buyer interest after having a very flat 2007. I have always thought that good snow conditions can cure a lot of economic woes. And the simple fact is the more foot traffic we have in Big Sky, the stronger business activity we will have across our region.

Let’s take a look at a few of the numbers from 2007. Also, please see the companion piece by Nicole Ritter in this issue of BTB which further explores and analyzes the numbers. All information is compiled from the Southwest Montana Multiple Listing Service (SWMLS).

Within the Bozeman city limits, the condo and townhome dominance trend continues to grow. For the third straight year, attached housing sales have surpassed single family detached housing. Both affordability and availability drive this ever increasing market segment. There were 425 condos and townhouses sold in 2007 which compares to 433 in 2006. Average price for in-town condos and townhouses was $234,936, up slightly from 2006’s average of $228,269. There were 331 single family homes sold with the average price reported at $337,683. For 2006, this same category included 379 sales units with an average price of $348,766. Even though average prices are down year over year, 2007’s average of $337,683 is up by 8% from 2005’s average of $312,723. It is important to stress that average sales prices are impacted by many factors, including land prices, building costs, design trends, square footage, etc. and have no direct correlation to appreciation or depreciation rates.

Statistics from the City of Bozeman ’s Building Division website show a noticeable increase in the new construction trend. The city issued 758 housing unit permits in 2007 compared to 670 in 2006. Furthermore, the total valuation of all building permits for 2007 increased to $243,751,248 from $192,676,993 in 2006.

The Belgrade market area is one of the more stable in our region. Belgrade ’s available residential inventory has actually decreased in the past year. As of January 1, 2008, there were only 147 single family homes available for sale in comparison to 153 at the beginning of 2007. Condo and townhome inventories are down as well from 54 units to 37. Lower supply is another “key indicator” to market stabilization. Belgrade serves many first time buyers, with an average sales price $50,000 lower than within the Bozeman city limits. The number of single family homes sold in 2007 decreased slightly to 268 from 284 in 2006. There was also a small decrease in the average price from $295,397 to $284,834. The Belgrade condo and townhouse market has slowed also in the number of units sold from 163 in 2006 to 114 in 2007, but it shows an almost 5% increase with the average sales price rising from $149,375 in 2006 to $156,499 in 2007.

The Livingston/ Park County market is also worth noting. Although the in-town single family home sales decreased in the number of units, the average sales price rose again last year to $212,773 from $203,772 in 2006, an increase of 4%. The in-town condo and townhouse market, an emerging trend in Livingston , experienced substantial growth in the number of units sold with an increase from 19 units in 2006 to 37 in 2007. The average price also increased to $171,686 in 2007 from $141,134 in 2006. The rural areas of the Park County market showed slight decreases with the total number of residential transactions declining from 74 to 68 last year. However, the average price in this segment did increase from $349,368 to $357,731.

Sales of vacant land and subdivision lots slowed substantially in 2007, caused in part by record numbers of existing homes for sale. Within the Bozeman city limits, the average price increased from $114,637 to $137,691 (a jump of 20%). Please note: this statistic also includes a number of multi-family lots and does not reflect an average sales price for a single family lot. The average sales price of land in the surrounding Bozeman area increased by 43%, and Park County experienced a 21% increase in average price. There is still an abundance of inventory in this market segment from subdivision lots to large acreages in all price points. In the city of Bozeman as of year-end there were 654 available lots for sale and in the area immediately surrounding Bozeman , 618 available lots. Belgrade had 174 lots for sale, and the Manhattan/Three Forks area had 661 lots in inventory. The good news for buyers is ample availability and choices.

In conclusion, it is important to always keep in mind that the numbers reported are somewhat inconclusive when telling the whole story. There are many “pockets” of price ranges that are faring better than others or even certain neighborhoods that go against the norm of the market as a whole. Luxury and specialty properties are bucking the national trends with water amenities and larger acreages in high demand. Positive market signs include our growing employment base coupled with extremely low unemployment and continued national attention for the region as a prime retirement and second home location.

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.

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

So sad, the trickle down finally gets to Montana…

“A national slump in housing starts and the shaky health of the home mortgage industry are key factors in RY Timber’s decision last week to temporarily shut down its mills in Townsend and Livingston.”

Read More: Click here!

By MARGA LINCOLN
Independent Record

Published 1/20/2008

Yes, it’s finally happened. It finally came and is effecting us here in Bozeman/Livingston area. Because of the slow in the housing market in the rest of the U.S., our timber community has been negatively effected. Read the article to learn more about how this happened.

 

Second Home Paradise

Published in the Bozeman Chronicle, August, 2007.

Most people who follow the real estate market are well aware that housing sales in 2006 slowed down nationally after a phenomenal pace for five years. And while it holds true that the second home market as a whole witnessed a decline, the bright spot that emerged was a record-breaking year for the purchase of vacation homes.

The National Association of Realtors recently published the results of the 2006 Investment and Vacation Home Buyers Survey. Results show that the second home market slipped from 40% of residential sales in 2005 to 36% in 2006. To break that figure down further, investment home sales dropped by over 28%, yet vacation home sales rose 4.7% to a record 1.07 million. Additionally, vacation homes accounted for 14% of last year’s total residential purchases, which was up from 12% in 2005.

Real estate analysts were not particularly surprised by these numbers due to the fact that many of those involved in speculative real estate left the market in 2006. Therefore, investment sales dropped at a faster pace than the general residential market. Those buyers in the vacation home market are in a strong demographic group with lifestyle being the primary catalyst of their purchasing decisions.

So who are the vacation home buyers? The survey’s findings once again show that the typical vacation home owner is of the baby boomer generation. However, this year the median age decreased to 44 years old (from 52 years in 2005) with a median household income of $102,200. The properties purchased were a median of 215 miles from the homeowner’s primary residence, showing that accessibility is a key factor. David Lereah, NAR’s former chief economist, concludes that “The demographics favor vacation-home sales because large numbers of consumers are in the prime buying ages, and buyers want recreational property for personal use – investment is a secondary consideration.” This trend could certainly continue with 44.7 million baby boomers currently aged 40-49. These are the people who are now positioned to compel the market.

A quick look at where vacation homes are being purchased shows 25% in the Northeast, 13% in the Midwest , 38% in the South, and 25% in the West. Rural areas were the most popular at 29%, followed by 24% in resorts, 22% situated in the suburbs, and 10% were located in urban or city center areas. This correlates with vacation home owner’s desires to be near waterfronts (ocean, lake, and river), recreational or sporting activities such as skiing and golfing, resort areas, or mountain and other natural attractions. Additionally, there has been strong activity in towns with universities, especially those who are going the extra mile to cater to the active yet retired or semi-retired demographic.

The factor that sets apart vacation home buyers from the rest of the market is primarily the motivation for purchasing the home. An overwhelming 79% plan to use the residence for vacations or family retreats. Additional reasons, in order of response rate, included diversification of investments, use as a primary residence in the future, tax benefits, use by family member or friend, because they had extra money to spend, or to rent to others.

Although the investment home market showed significant declines, it still comprised 1.65 million sales in 2006. A brief synopsis of the typical buyer is a median age of 39 years old, earning an income of $90,250 and purchasing a home a median of 22 miles from their primary residence. Explanation for their purchase, in order of response rate, was seeking rental income, diversification of investments, tax benefits, use for vacations or family retreat, having extra money to spend, use by family member or friend, and use as a primary residence in the future. The majority of investment properties are located in the suburbs with most activity occurring in the Southern part of the United States .

It bears repeating that Bozeman , Big Sky, Livingston and Paradise Valley are ideally situated to take full advantage of this long-term trend. Our proximity to Yellowstone National Park , world-class fishing, multiple ski resorts, championship golf courses and Montana State University spell the perfect combination for a strong vacation home market for years to come.

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. All thanks to Robyn for this article!