Picking the Right Listing Agent – Exposure

What to look for in a Real Estate Agent when Selling your home

Why choose Keller Williams and the Jeremy Williams Team to sell your next home? Because we don’t all do the same things to sell a home.  Internet exposure is just one of the many tools that sets us apart from the competition. Be an educated seller and ask questions.

Jeremy Williams
Keller Williams Western Montana
Direct | 406-926-6767
jeremywilliams@kw.com
Missoula,MT



Missoula Real Estate Report – May2014

Missoula Real Estate Market

OVERVIEW: Over the last two months, real estate activity has been on the rise after having been incredibly slow over the winter months. We are feeling more confident that we are beginning to see a stabilization of the Missoula market. Active listings, under contract numbers, and sales are all on the rise.

By The Numbers:
• Sales are up 5.7% higher than previous month
• 81% of homes sold are under $350,000
• Average home prices are up 2.8% over last year
• Overall sales are down 26.7% from this time last year but catching up fast
• Average list to sales price is hovering around 98%
• Absorption rates back to a normal market after starting the year as a buyers’ market
• Total number of homes on the market is 445 and an additional 203 homes are under contract

Buyer Recommendation: Despite the increase in homes on the market, with buyers out looking, those sellers whose homes are competitively priced have been entertaining multiple offers and getting very close to asking price. Prior to beginning or resuming your search, we recommend that you be prepared with a loan pre-approval letter and ready to look at and make an offer on the good homes immediately to avoid possible multiple offer situations. Average lender rates for mortgages have been increasing steadily and, if rates continue to rise, we anticipate a downward pull on affordability for buyers in the market for a new home. Be prepared to pay 97-98 percent of asking price, on average.

Seller Recommendation: With inventory increasing over the last couple of months, and despite the increase in buyer activity, we still recommend putting/keeping your home on the market, especially since there are currently more buyers in the market than we have seen in the last several months. However, while it seems average sold prices should increase a little during this time, it is still very important to list your home with a reasonable and competitive price.

Absorption Rate

The health of any real estate market can be recorded by absorption rates, which is the correlation between the number of active homes on the market and the number that sell per month, on average.  According to the National Association of Realtors, a normal market is six months of inventory. For the purposes of this discussion we are utilizing a 3-month average for sales.

Absorption Rate - June 2014

Inventory of Homes Listed for Sale

Over the last year Missoula has had a significant shortage of homes on the market and, even with seasonal increases in inventory, inventory levels were constantly running behind prior year levels. However, in the last two months, inventory has picked up significantly and at the end of May, there were 449 homes actively listed for sale. Inventory levels are still behind the levels of 2010, 2011, and 2012, however, based on our evaluation of the absorption rate, we believe that we may be witnessing Missoula’s ascent toward a more normal market.

ActiveHomesMonth_2014-05

5-Year Home Sales by Month

Missoula home sales increased this month to a total of 75 and under contract volume increased from 155 properties at the end of April to 203 properties under contract in May. Based on the low number of sales in the first quarter of the year, we believe there may have been some properties that were under contract at the end of March that did not end up closing until April or May.

The following chart provides a monthly snapshot of total homes sold since January 2010. (Green columns represent Under Contract properties for the current year.)

5YRSalesTrebd_2014-05

Overall Short-Term Market Outlook

With more active listings on the market and under contract numbers on the rise, there are currently buyers actively looking for homes to purchase and we believe we have been experiencing a normalizing market.

Since inventory was so low in the beginning of the year, buyers had little to choose from, so when a good home that was priced well would be listed, sellers were entertaining multiple offers and garnering near asking price. Over the last two months inventory has begun to increase. Sellers have put more homes on the market in the last two months and since there are currently plenty more buyers in the market than we have seen in the last several months, sellers are still getting very close to asking price. Buyers still have limited options compared to years past, thus creating the possibility of a seller getting an offer close to asking price.

While it seems average sold prices could continue to increase over the coming months, qualified buyers that are prepared to buy are also looking to purchase a reasonably priced home. Sellers whose homes are competitively priced continue to entertaining multiple offers and are getting very close to asking price or more than asking price. Sellers are currently closing the sale at an average of 98 percent of asking price.

FULL PDF Version:  May 2014 Market Report 
 
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Jeremy Williams
Williams & Associates
jeremywilliams@kw.com

Sellers: See list of quaified buyers!

Looking to sell? Please help!

These buyers are qualified and ready to buy today if the right home comes on the market.  If you are looking to sell please let us know.  Imagine knowing when your home was going to sell and what price without having the uncertainties of testing the market.

We have a large list of buyers looking, here is our top leads for the Missoula area looking to purchase today.

Customer One-

The property must be RD compatible in the Missoula and Surrounding areas under $200k.  Needs to have a good sized yard for garden’s.   3+ beds/2+ bath

Customer two-

Land or large home close to Hellgate Elementary Schools in Missoula.  Must be 4+ beds/3+baths  also would like a min. of 2 acres   max $450k

Customer three-

Nice updated home with views.  Must be in a quiet neighborhood.  3+bed/3+bath  Under $400k.  Close to Missoula and easy commute to Community Hospital.

Customer  Four-

Nice updated home with open concept.  Hardwood floors a must.  Must have great views.  3bed/2bath   300k to 400k.  prefer overlooking the Missoula Valley

Customer Five-

Looking in Missoula and surrounding areas for a 3+bed/2+bath.  A couple of acres if possible and would like to be in the grant creek/big flat areas.  $300k  Trees and View a must

Customer Six-

Looking for a home just on the outskirts of Missoula.  Yard, Garden and close to hiking is a must.  2bed/1bath   Would like an open feel and wood floors if possible.  Wood stove is a huge plus too. Around $180k

Customer Seven-

Out of town client moving here in mid June.  Minimum 4+bed/3+bath would prefer a 5bed.  Wants to be in the Hellgate Elementary School District.  Wants a small yard with little upkeep.  $300k max

Customer Eight-

Looking for a home in the Missoula and Surrounding areas.  $215k max.  3bed/1+bath with good yard for animals.  Would like an open concept and natural light with hardwood floors if possible.

Customer Nine-

Looking for a maintenance free one level home under $200k.  Like the Lolo area.  3bed/2bath…  Good Cabinet space and a decent sized two car garage are must.  Little to no yard if possible.

Customer Ten-

Looking for a good sized home with acreage for several horses.  Would like to be in the Bitterroot Valley.  Mid 300k if possible.  3+bed/3+ bath.  Big shops/Barns/Garages…

Customer Eleven-

Missoula and Surrounding Areas- Looking for Property with or without home.  Property must be bordering Forest Service Land.  Acreage 10+.  400k  and under.  Would like property to close water if possible.

Customer Twelve-

Looking for a starter home in Missoula area.  $170k and under.  2bed/1bath  yard and garage/shop would be a plus.

If you are thinking about selling your home please contact me at:

Jeremy Williams
406-926-6767
jeremywilliams@kw.com
 
Click here to see homes SOLD prices in your area

Missoula Real Estate Trends : April 2013

Missoula Real Estate Market Overview:

Through the end of April, there was still a low supply of residential homes for sale in the Missoula market. With 349 active residential listings at the end of April there were only 10 additional active listings than there were at the end of March. However, despite the low inventory for several months in a row, Missoula’s sales each month have either matched or trended to a higher level than we have seen in the last five years. Residential home sales for both the month of April and YTD April were higher than sales for the same time period since 2008. As we have mentioned before, under contract numbers can be an indicator of a rebounding Missoula real estate market. At the end of April, there were 208 residential homes under contract. This is the highest number of properties under contract we have seen at the end of any given month in the last five years. Under contract figures remained strong throughout the winter and have been climbing since the beginning of the year, despite low inventory.

Buyer Recommendation: Take advantage of low interest rates and be prepared to pay approximately 95% of asking price. With a shortage of inventory, sellers who have their homes competitively priced are sometimes entertaining multiple offers and getting very close to asking price. Prior to beginning, or resuming, your search, we recommend that you be prepared with a loan pre-approval letter and ready to look at the good homes immediately to avoid possible multiple offer situations.

Seller Recommendation:  Inventory is so low right now that we recommend putting/keeping your home on the market. Buyers currently have limited options, creating the possibility of getting an offer close to asking price now that supply is not quite meeting demand. However, while it seems that average sold prices could increase a little throughout spring it is still very important to price your home reasonably and competitively as the seasonal influx of new listings hit the market in-step with the warmer weather. There will likely be increased competition which could hold some homes back from selling if they are

Supply and Demand

The health of the Missoula real estate market is recorded by absorption rates, which is the correlation between the number of active homes on the market and the number that sell per month, on average.  According to the National Association of Realtors, a normal market is six months of inventory.

Overall, the Missoula market is performing better than a normal absorption rate. At an absorption rate of 4.6 months in April, the Missoula market is continuing the trend of the best absorption rates in five years.

Homes in the price range above the black line in the charts below indicate a seller’s market and homes priced below the black line indicate a buyer’s market. Prior to October 2012, Missoula’s absorption rate performed at a slower rate than that of a normal market but has been performing at a better rate ever since. As the market improves, look for consumer confidence in the higher priced homes to increase as a positive indication of overall market health.

Average Sales Price

Overall average sold price in April was $268,104, one of the highest average sold prices in the last several years. Listing inventory crept up only slightly in April and while average sold price has been increasing steadily since February, average sold prices are anticipated to increase as we enter the full swing of spring/summer.

 5 Year Missoula Real Estate Trend

Under Contract volume increased from 178 properties in March to 208 properties in April and, though sales dropped off for the winter season, home sales over the last several months either matched or outpaced most all of the last five years when compared to the same months in prior years. Watch for a greater percentage of under contracts turning into sales compared to previous years.

According to the Missoula MLS, 96 homes were sold in April this year, the most number of homes sold in any given month in the last 5 years – with the exception of May 2010 when 102 homes were sold that month and June 2012 when 97 homes were sold. The following chart provides a monthly snapshot of total homes sold since January 2009. (Green columns represent Under Contract properties for the current year.)

Full Missoula Real Estate Report

Information Provided by:
Jeremy Williams
Williams & Associates | Keller Williams Realty

Missoula Real Estate Update – January 2013

Missoula Real Estate update for January 2013

There is currently a low supply of residential homes for sale in the Missoula Real Estate market. With 322 active residential listings at the end of January, it is the lowest month-end inventory we have seen in Missoula for the last couple of years. Despite the low inventory, however, for the seventh straight month in a row Missoula’s year-over-year sales have either matched or trended to a higher level than we have seen in the last five years. January residential home sales were equal when compared to January of last year.

An encouraging sign of a rebounding Missoula real estate market can be found in the under contract numbers. Typically, around August and September, each year we see the number of properties under contract and sales start to decline as the start of the school year approaches and fall/winter is on the horizon. While that did happen last fall, under contract figures have remained strong and at the end of January there were approximately 128 properties under contract.

Buyer Recommendation: Take advantage of low interest rates and home prices this winter to maximize your buying power. More options will be available in the spring, however, if trends continue we would expect the same homes to be selling for a higher price.  Be ready to look at the good homes immediately to avoid possible multiple offer situations.

Seller Recommendation:  Inventory is so low right now that we recommend putting/keeping your home on the market this winter. Buyers currently have limited options, creating the possibility of getting a better price now than in other times of the year. In our experience, winter buyers tend to come pre-qualified and ready to buy, so they are not wasting your time. While prices could increase a little by spring, there will be increased competition which may hold some homes back from selling.

5-Year Home Sales by Month:

 

 

 

 

 

 

 

 

Under Contract volume increased from 101 properties in December to 128 properties in January and, though sales have dropped off for the winter season, home sales over the last several months have either matched or outpaced most all of the last five years when compared to the same months in prior years. Watch for a greater percentage of under contracts turning into sales compared to previous years.

According to the Missoula MLS, 46 homes were sold in January this year. The following chart provides a monthly snapshot of total homes sold since 2009. (Green columns represent Under Contract properties for the current year.)

Absorption Rate:

The health of the Missoula real estate market is recorded by absorption rates, which is the correlation between the number of active homes on the market and the number that sell per month, on average.  According to the National Association of Realtors, a normal market is six months of inventory.

Overall, the Missoula market is performing better than a normal absorption rate. At an absorption rate of 4.6 months in January, it was healthier than the 4.8 months absorption rate in December and one of the strongest we have seen in five years.

Homes in the price range above the black line in the charts below indicate a seller’s market and homes priced below the black line indicate a buyer’s market. Prior to October 2012, Missoula’s absorption rate performed at a slower rate than that of a normal market but has been performing at a better rate ever since. As the market improves, look for consumer confidence in the higher priced homes to increase as a positive indication of overall market health.

Average List-to-Sales Price:

List-to-sales price signifies pricing trends in the market. For the last two years homes have generally been selling at 95% to 96% of list price. For example, if you are selling a home for $100,000, on average sellers are accepting offers of $95,000 – $96,000, or between 4% and 5% less than asking price.

Overview: As inventory goes down in Missoula, look for average List-to-Sales price to increase as an indication of an improving market.  A higher List-to-Sales price will also be an indicator of increasing home values.  Lower list to sales prices in May- July can be attributed to high absorption rates.  During these months there are more homes on the market or more competition.  Motivated sellers may have to take less for their home in order to beat out the competition.

Information Provided by:

Jeremy Williams
Williams & Associates | Keller Williams Realty

Missoula Real Estate Market – Reflection of 2012

Missoula Real Estate Report 2012

Use this link for a full PDF version of this report: Missoula Real Estate Report 2012

Market Overview

For the sixth straight month in a row, Missoula’s year-over-year sales have either matched or trended to a higher level than we have seen in the last five years. December residential home sales were flat compared to December of last year and on an annual basis, 2012 sales outpaced 2011 by more than 31%.

An even more encouraging sign of a rebounding Missoula real estate market can be found in the under contract numbers. Typically, around August and September, we see the number of properties under contract and sales start to decline as the start of the school year approaches and fall/winter is on the horizon. While that did happen this year, under contract figures remained strong and at the end of December there were approximately 101 properties under contract. This represents about 50% to 75% more homes under contract at the end of 2012 than in the last three years.

Buyer Recommendation: Take advantage of low interest rates and home prices this winter to maximize your buying power. Next spring more options will be available, however, if trends continue we would expect the same homes to be selling for a higher price.  Be ready to look at the good homes immediately to avoid possible multiple offer situations.

Seller Recommendations:  Inventory is so low right now that we recommend putting/keeping your home on the market this winter. Buyers currently have limited options, creating the possibility of getting a better price now than in other times of the year. In our experience, winter buyers tend to come pre-qualified and ready to buy, so they are not wasting your time. While prices could increase a little by spring, there will be increased competition which may hold some homes back from selling.

5-Year Home Sales by Month:

Under Contract volume is still quite high as we close out the year and, although sales have dropped off slightly for the winter season, home sales over the last several months have either matched or outpaced most all of the last five years when compared to the same months in prior years. It is important to note that the Missoula MLS adjusted the way under contract short sales were accounted for midway through 2012. However, this change does not affect the figures significantly. Prior to the change, short sales were considered “Active” listings until the transaction was closed. Now short sales that are in the process of being finalized are counted as “Under Contract” in the MLS.

According to the Missoula MLS, 54 homes were sold in December this year. The following chart provides a monthly snapshot of total homes sold since 2008. (Green columns represent Under Contract properties for the current year.)

Average Sold Price:

While average sold price had been declining slightly each month since August, prices rebounded significantly in December. As expected, with the further decline in listing inventory, average sold prices increased approximately 8% from about $247,500 in November to approximately $268,000 in December. When looking at the year as a whole, there were roughly 600 fewer homes listed for sale in 2012 than in 2011 and approximately 31% more homes sold this year than last. The combination of these factors resulted in an average annual sale price of approximately $244,000, a mere 0.4% lower than the estimated overall average in 2011 of $245,000.

Inventory of Homes Listed for Sale:

Since the month of April, inventory levels have been lower than in the last two years. Lower inventory levels can be one of the first signs of a rebounding market, as it could indicate that more homes are selling than new listings being put on the market. We have noticed a significant shortage of homes on the market over the last couple of months and we expect inventory levels to continue to decline as we move further into the winter months. The following chart presents the total inventory of homes listed for sale at the end of each month since January 2010.

Williams & Associates Real Estate Consulting

In an effort to provide our clients with the most up to date information available, we provide them with a detailed market report.  In changing markets it is important that you are making decisions before the competition.  This month we are including a full version of our 2012 recap.  Please let us know if you would like to receive this report every month.  In addition, we do provide customized reports for different market segments.

Click here for a full detailed Missoula Real Estate Report 2012

Jeremy Williams
Williams & Associates | Keller Williams Realty
jeremywilliams@kw.com

Missoula’s University area is HOT!

University Homes | Missoula, MT

The University District in Missoula, MT has always been regarded as one of Missoula’s most desirable neighborhoods.  Known for its century old tree lined streets, unique architecture, proximity to the University of Montana and Downtown, the University District is unlike any other neighborhood in Missoula.  As a result, the University area sets the standard for Missoula Real Estate.

Real Estate in the University Area was no exception in 2012.  For the year, 51 total homes sold for an average sold price of $ 338,880 and produced the only million dollar plus real estate sale in Missoula this year.  With an average of 4.25 homes selling a month, the absorption rate for the Missoula’s University District is 2.11 months and is well out pacing a normal market of 6 months.   This means that 47% of homes in the University district sell each month.

Recommendation:  Expect University Area Real Estate to continue to appreciate until the inventory levels are back to a normal level.  To maximize your buying ability, look to purchase in the first couple months of the New Year before an active spring market pushes prices higher.

For more information: Click here to search all of Missoula’s University of Montana Homes.
Jeremy Williams
Williams & Associates | Keller Williams Realty
406-926-6767


Missoula Real Estate Report – Oct. 2012

Missoula, MT

More good news for the Missoula Real Estate market!

For the fourth straight month in a row, Missoula’s year-over-year sales have trended to a higher level than we have seen in the last five years.  October 2012 Real Estate sales were 56.3% higher than the same month last year and 34.0% higher than year-to-date October 2011.

An even more encouraging sign of a rebounding Missoula real estate market can be found in the under contract numbers. Typically around August and September we see under contract properties and sales start to decline going into winter. At the end of October there were a total of 130 properties under contract, the highest level in October over the last five years.

Buyer Recommendation: Take advantage of low interest rates and home prices this winter to maximize your buying power. Next spring more options will be available, however, if trends continue I would expect the same homes to be selling for a higher price.  Be ready to look at the good homes immediately to avoid possible multiple offer situations.

Seller Recommendations:  Inventory is so low that I recommend keeping your home on the market this winter.  Buyers will have limited options, creating the possibility to get a better price now than other times of the year. Winter buyers tend to be more qualified and ready to buy, so they are not wasting your time.  Prices may increase a little by spring, but there will be more competition which could hold some homes back from selling.  Click here for additional reasons to sell this winter.

5-Year Home Sales by Month:

Under Contract volume is still at/near the highest levels seen all year and, although sales have begun the seasonal descent into the fall/winter season, home sales over the last four months have outpaced most all of the last five years when compared to the same months in prior years. It is important to note that the Missoula MLS has recently adjusted the way under contract short sales were being accounted for, however, this change does not affect the figures significantly.  Prior to the change, Short Sales were considered “Active” listings until the transaction was closed. Now short sales that are in the process of being finalized are counted as “Under Contract” in the MLS.

Missoula Real Estate 5-year trends
5-year sales trends for Missoula Real Estate Market | Oct. 2012

According to the Missoula MLS, 75 homes were sold in October this year, a level not seen in the month of October since 2009 when a first time home buyer’s credit helped buoy home sales. The following chart provides a snapshot of total homes sold, by month, since 2008. (Green columns represent Under Contract properties for the current year.)

Inventory of Missoula Homes Listed for Sale

Since the month of April, inventory levels have been lower than they have been in the last two years. Lower inventory levels can be one of the first signs of a rebounding market. Watch for inventory levels to continue to decline as we move further into the fall/winter months. The following chart presents the total inventory of homes listed for sale, by month, since January 2010.

Missoula Real Estate Inventory of homes
3 year history of Missoula housing inventory

Absorption Rate:

The health of the Missoula real estate market is recorded by absorption rates, which is the correlation between the number of active homes on the market and the number that sell per month, on average.  According to the National Association of Realtors, a normal market is 6 months of inventory.  Missoula’s current absorption rate is at 5.7 months and is the healthiest we have seen in more than 5 years.

Missoula Real Estate Supply and Demand
Absorption Rates for Missoula Real Estate Market

In general, homes priced below $350,000 performed at a better rate than a normal market whereas homes priced between $350,000 and $500,000 performed significantly slower than in a normal market.

Overview:

With roughly 27% of inventory turning over each month, homes priced between $200,000 and $250,000 continue to outperform the rest of the market priced above $125,000. This October, roughly 85% of Missoula’s single family homes were sold for less than $350,000.

Click here for a PDF version of this report: Missoula Real Estate Market Report – oct 2012

Please contact me for a full detailed version of our Missoula Real Estate report that includes sales broken down by price ranges and historical market changes.

Information Provided By:

Jeremy Williams

Williams & Associates | Keller Williams Realty


11 Reasons to Sell During the Holidays – Missoula, MT

Missoula,MT –  It happens every year around this time.  The weather changes, leaves start to fall and sellers hustle to take there homes off the market. Every October a large supply of homes come off the market, sometimes in the hundreds leaving limited options for the buyers that are looking.  We can see it in our Missoula Market Report already.  Inventory is down and the many buyers that are staying in the market due to low interest rates are struggling to find quality homes.  It is for that reason I am making a strong recommendation to my clients to keep your home on the market.  Homes that didn’t get much action during the summer will get strong looks this fall.

11 Reasons to Sell During the Holidays

1. People who look for a home during the Holidays are more serious buyers!

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home.  Less demand means less money for you.

4. Houses show better when decorated for the Holidays.

5. Buyers are more emotional during the Holidays, so they are more likely to pay your price.

6. Buyers have more time to look for a home during the Holidays than they do during a work week.

7. Some people must buy before the end of the year for tax reasons.

8. January is traditionally the month for employees to begin new jobs.  Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market.

9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays.

10 You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year !

11. By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less! This will allow you to sell high and buy low!

Remember when selling your home timing can be everything.  Please contact us for a home evaluation so I can help you get the most out of your home.  Happy Holidays from Williams & Associates

Jeremy Williams