According to Zillow, “National home values still lag 6.8 percent below their pre-recession peak. While appreciation rose aggressively coming out of the recession – and it varies widely across the country – it has recently slowed to a more normal rate.”
Zillow also reports that “housing inventory is still low, and the demand is driving the recent increase in home values.”
So what does that mean for Montana? And specifically the Philipsburg, Drummond and Hall areas in particular? Yes, the housing inventory is low, it’s low in all of Granite County. And there are many buyers right now and with the low number of homes on the market, home values are rising.
I have buyers right now looking for homes in your area, but due to the market shortage they aren’t finding what they are looking for. If you’re looking to sell, now is a good time!
There is also a shortage of rentals in the area as well. That’s really an understatement. There is almost nothing to rent in Granite County! I have on average 2-4 calls a week, people looking for houses to rent and I hear the same thing from other realtors in the area. The situation is forcing some of those people to buy rather than rent.
According to Zillow: “2016 will be all about housing affordability. Though more potential buyers are forming households in the recovering economy, don’t expect a dramatic rise in home sales.”
Keep in mind these are national statistics. I don’t see this being the case for our area.
Philipsburg has become a hotspot destination and people are moving there for its small town charm. Drummond is affordable and an ideal commute for those who work in Missoula and don’t want to pay Missoula County tax rates.
Low interest rates and affordable mortgage payments are attracting buyers. Rising rents and lack thereof are motivating people to change their current housing situation.
When looking at Rent vs. Buy, Zillow reports that, “Current renters spend roughly 30 percent of their household income on housing: home buyers spend about 15 percent of their monthly income on a mortgage payment for a typical home.”
Seems like a no brainer right? There are factors of course that can control whether or not a buyer can obtain financing - bad credit, job status etc. If buying is right for you, pinpoint the number of years you will need to own and live in a home until it becomes more money-wise than renting the same one.
If you live in the area and are faced with the lack of rentals situation, maybe investing in an affordable home is right for you. It can pay off big. Home values are expected to rise about 3.5 percent in the next year. If you later decide to sell, you can make money on your investment!
I can help you with finding the right home. If you’re a homeowner and would like to take advantage of the market, I would love the opportunity to help you with that as well.
Call me today! Alicia Hicks 406-240-5860.