Real estate market looking up
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LAKE COUNTY — There is one word that sums up the outlook Mission Valley real estate agents have for 2015: optimistic. The further in the rear view mirror the crash seven years ago gets, the better things appear. With the beginning of a new year comes new hope for real estate.
“The perfect picture for real estate in the Mission Valley would (be) that it return to what I was a part of in the late ‘90s and early 2000s – consistent, slow and steady growth,” said Janette Rosman of Windermere Real Estate in Ronan.
The market hasn’t come full-circle yet to return to that time, but things certainly are improving.
Lisa Kinyon, a broker for Keller Williams Realty NW Montana, sees that “housing prices in our valley are stabilizing, which means our sales are increasing and property values are rising.”
Kinyon sees high-end and lakefront property as the main areas of increase; Mac Swan of Mission Bay agrees.
“I’m hoping for the sake of sellers who have been on hold for many years that we see improvement in the segment of the market above $300,000,” Swan said. “As the economy improves, that’s a reasonable expectation.”
Kinyon believes new construction is gaining popularity as well, which in turn, is “propelling land sales upward,” she said.
Swan has seen buyers show greater interest in the same type of properties – Mission Bay communities saw eight undeveloped lots “change hands,” as Swan put it, in 2014.
New development on Flathead Lake saw prices rise from an average of $2,887 to $3,637 per lineal lakefront foot last year. Rosman predicts residential property growth in “larger and improved properties with a small amount of acreage.”
Regardless of where the growth ends up coming from, real estate agents are happy that there is growth. Reflecting on the crash of 2007, there seemed to be little hope that things would improve. From clearing out savings accounts, to taking on second jobs, to leaving things to fate, agents had little control over where real estate was headed — only what they could do to try and lessen the burn. They worked diligently to slowly rebuild what the economy had collapsed. With 92 percent of buyers beginning their search on the Internet, according to the National Association of Realtors, Rosman put her money and efforts towards upping the online presence of Windermere listings and herself as a realtor.
“The buyer today can go to many websites on the Internet and study the market, but their main source of information will come from a local realtor who has access to the MLS and can help the buyer determine what market value is,” she said.
While there is a great deal of information on the Internet, nothing beats a real-live person. All realtors make it a point to establish solid relationships with their clients. In rebuilding his business post-2007, Swan “stay(s) in touch with folks who may be interested in buying or selling … I work full time and then some. I stay committed to and enjoy the work.”
There are many factors that go into determining the buying or selling of real estate, and agents and brokers must review data and be aware of trends that positively and negatively affect the market.
In 2015, lenders may be a big obstacle to hurdle.
“The concerns I see facing the real estate industry are the continued tight lender standards, higher appraisal standards, and consumer credit,” Kinyon said.
Swan has hope, though.
“Buyers have struggled with qualification for loans under banking regulations implemented following the recession. I believe that is improving,” Swan said. “Rates are still favorable, so it’s a great time for buyers in our area to hunt out and purchase the home they want.”
And Rosman feels that it is prime time for buyers.
“Buyers today have one of the greatest opportunities that continue to be offered to them: low interest rates, housing prices that are realistic, Realtors and lenders who are working in their best interest and the buyer being able to (participate) in the American Dream today,” she said. “It’s still out there and available.”
