2013 Property Predictions for Missouri and Montana

MISSOURI: 40% of listings need TLC “According to the Kansas City Regional Association of Realtors, the Kansas City Standard Metropolitan Statistical Area (SMSA) has achieved a balanced estate market: 5.98 months of inventory as of November 2012. Sellers are receiving 95.4% of their asking price and the average is at 101 days, down from 117 year-to-date.

A caution on the number of homes in the market: approximately 40% of existing listings are distressed properties (foreclosures and short sales), another 40% need “TLC and/or cosmetic touches”, leaving 20% of the existing listings in move-in condition. This accounts for housing shortages in certain areas and zip codes where we’re seeing multiple offer situations and homes selling in far less time than the average days on market.

I would buy to hold single-family properties because of the number of families continuing to lose their homes to foreclosure. With banks having swung from loaning money to anybody to not loaning money to anybody, families will not be able to get a mortgage for at least two years; therefore, they are renting single-family homes, which is closer to their previous lifestyle than becoming apartment dwellers.”

MONTANA: Single-family home sales up by 10-15% John E. C. Lagerquist is a native Montanan with over 40 years of sales, marketing and business development experience. He has won numerous top producer awards and is a sales associate for Century 21 Heritage Realty. For Montana’s 2013, he says:

“The volume of single-family homes being sold should be up 10% to 15% in the 8 largest realtor associations in Montana: Billings, Bitterroot, Gallatin, Great Falls, Helena, Missoula, and the Northwest. This will follow the strong and steady growth of 2012. In the northeastern corner of Montana, new housing isn’t being built fast enough to satisfy mounting demand from workers in the oilfields and related industries of the Bakken oil boom.

With the economic outlook calling for moderate growth in the Montana economy in 2013, real estate buyers should get a reasonable 3% to 5% appreciation annually in most areas of the state.

The exception is the northeastern corner of the state where housing is scarce and expensive. Housing developers in this area are required to bring a lot of their own capital to the table. Lenders in the region haven’t forgotten the bust of the early 1980’s when oil prices dropped and that led to widespread home foreclosures. However, if a developer has the capital and the development is a community that has enough infrastructure to accommodate the growth, high returns could be possible.”

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