Great Falls Real Estate Outlook: “Good, Strong, Steady”

Housing price bubbles and the bursts that go with them aren’t part of the picture in Great Falls, Mont., the Great Falls Tribune reports today.

“We’ve had good, solid, steady growth, not the overnight explosions,” said Beth Duke, a Realtor and broker in Great Falls.

There isn’t a glut of inventory on the market, which is good for sellers, says Jeff Hofstad, president of the Great Falls Association of Realtors.

And mortgage rates continue to be low, about the 6 percent range for a 30-year fixed-rate mortgage, making it a good market for buyers, he adds.

“Great Falls does not seem to be subject to the national trends, and because of that, our housing market is also stable,” Hofstad said.

In fact, single-family home prices increased 13.2 percent from September 2005 to September 2006 in Great Falls, well above the national average of 7.7 percent and beating the Montana real estate market average of 12.9 percent.

Missoula County — a Montana hot spot — saw home prices go up 11.3 percent during the same time period. That’s better than the 10.1 increase during the same time from 2004 to 2005, while a good amount cooler than the 13.7 percent increase from September 2003 to September 2004.

“Things are beginning to happen in Great Falls, we are starting to see activity in economic development,” said Marlene Egan, who just put her two plus two bedroom home on the market.

As always, starter homes, those in the $90,000 to $125,000 range (and most affordable for first-time Montana mortgage applicants), are selling the fastest — if they are in good condition.

“If I had good, clean homes priced below $100,000, I could sell 10 a day,” said Duke.

Part of that demand can be credited to low-interest Montana mortgage loans offered by the Montana Board of Housing and Neighborhood Housing Service for low to moderate income buyers.

“They offer good products to get people into affordable homes and that helps move the market,” said Jason Edmister, a loan officer for Stockman Bank.

The median home price in Great Falls is now running around $143,000 and the average days on market is about 90 days. Quicker sales, especially for homes in good condition, are common.

“For sellers in the $300,000 plus range, it does take a little longer,” Duke said. “And at about $250,000, you start to see potential buyers decided to build.”

The new construction market in Great Falls is also steady, with 245 permits for new homes in 2006, compared with 233 in 2005. New home permits slumped from 1,042 in 2005 to 965 in 2006.

The rest of North Central Montana’s real estate market mirrors Great Falls, according to Mary Blair, an agent with Flynn Realty of Havre.

“We also have people from out-of-state who are investing in real estate here because it’s more affordable housing,” she said.

The market is seeing activity from newcomers, but with people working in a variety of industries and qualifying for mortgage loans at low rates and looking to make the region their home - not just buying for the purpose of an investment property.

SOURCE: Great Falls Tribune