The oversupply of residential realty in Montana is a temporary affair, even though it’s expected to last for a few years more as a result of the wider national recession, Isaac Toussie says. But neither does Montana suffer as harshly as states like Florida and Nevada. For the state never had a hot real estate market, so housing is still relatively balanced between supply and demand, and no sudden population spikes are expected. Commercial real estate in Montana appears to follow a pattern different only in that it is even more steady, all things considered. Federal assistance money has been welcome but it is unclear whether such a stimulus will be sufficient to force a reversal of economic fortunes.
As it was never a hot real estate market, Montana residential realty has been fairly balanced between supply and demand in general. It’s true that Montana housing has been affected by the ongoing economic recession plaguing all the country, yet realtors have been able to report a slight upturn in activity such as home showings and contracts. No one expects to see the same levels of business as previous years to return soon, but thanks to the federal stimulus program, which awards up to eight thousand dollars in tax credits to help first-time homebuyers, Montana realtors may be a little busier than anticipated, at least until the program’s expiration in November. Isaac Toussie anticipates slow growth over the next decade in Montana.
The National Association of Realtors recently reported that the 2009 national median value for existing single-family homes is 15.5% below that of last year’s. Though not as precipitously as elsewhere, Montana real estate prices have also been falling, in large part on account of the economy today. Yet Montana realty has not experienced the kind of speculative investment bubble causing so much misery in places like Nevada and Florida. After all, bubbles occur when prices bear no relation to the market realities of supply and demand, but Montana realities have been fairly stable, as the state almost never had a hot real estate market like California or New York.
Sometimes boring and un-flashy makes for a better investment. Montana may not rise as much as some other states, but it surely doesn’t get wounded as much as other states either, comments Isaac Toussie.
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