The media is all abuzz with news of the economy these days.  Be it the Internet, television, radio, or any source, all are talking about the economy.  However, there is one phrase in particular that tends to permeate the conversation: "economic growth."  What is economic growth?  What drives it?  What hinders it?  What can we do to increase it?  These questions are especially relevant to the Bozeman area, as well as to Gallatin County as a whole.             First, let's take a look at a couple of the indicators of economic growth and how they have been faring for our valley.  Three in particular seem to stand out: population growth, number of bank deposits, and resiliency to economic change.  Positive population growth and increases in the number of bank deposits are typically construed as good economic growth indicators, while the ability t ...

For the second year in a row, and for the third time in the last four years, Yellowstone National Park has set a new annual visitation record. During the calendar year, 3,640,184 people visited the world’s first national park. Recreation visits in 2010 were 10.5 percent higher than recorded in 2009, which itself was a record year. This past year the park set monthly visitation records in June, July, August, September, and October. All park entrances recorded annual visitation increases compared to 2009 levels. Double-digit percentage increases were recorded through the North and West entrances. The West Entrance continues to be the park’s busiest, which hosted nearly 1.5 million recreational visitors in 2010. Park managers believe the record visitation was due in part to the public’s recognition that visits to national parks represent a good value for their travel dollar. By: Livingston Enterprise Staff Writer

    The Wall Street Journal published an article today highlighting the improving market for Vacation homes in a number of resort communities across the country. Several of the trends noted in the article mirror what is happening in Montana's Big Sky Ski Resort. In 2010, Big Sky saw overall sales transactions increase by almost 50% as buyers jumped off the sidelines, often with cash.  The overall dollar volume of sales in Big Sky was also up, but by only 15% as the average price fell 17% between years.  PureWest Christie's Great Estates agents in Big Sky say that buyers who have been watching on the sidelines now believe the bottom is probably behind us and are moving to take advantage of bargain prices still available.  The upward trend in vacation homes defies expectations for home prices nationally where experts are calling for a further decline of 5% - 10% in home prices due to excess inventory, foreclosure pressure and the difficulty in obtaining mortgage finance. ...

It seems there are no very reliable measures of the number of homeowners who are underwater on their mortgages.  Estimates nationanally range 20 - 25% but those may be overblown and certainly don't imply that level of "strategic defaults".  The measures of borrowing are more accurate than the estimates of current home value.  For example, only half of actual home sales fall within 10% of the Zillow estimate. More importantly, many homeowners are only slightly underwater making it unlikely they will default.  Home prices in Bozeman, Montana have fallen 22% since their peak in 2006 but it is  unlikely that the national statistic of 20 -25% underwater holds true in the Gallatin area.  The Bozeman market was not characterized by a high  percentage of zero down mortgages.  Most of the underwater market problem has been concentrated in Flordia, Southern California, Nevada and Arizona. The following is a re-post from the Wall Street Journal Stan Feagler, PureWest Ch ...

  Reposted by Stan Feagler, PureWest Christie's Great Estates Big Sky, Bozeman, Paradise Valley   Housing Inventory Declines By Nick Timiraos See inventory data. The number of homes listed for sale declined in December during the typically slow holiday season. The supply of available homes for sale in 26 major metropolitan areas at the end of December was down 5.3% from November, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The data cover all single-family homes, condos and town houses listed on local multiple-listing services in cities where the firm operates. (See the inventory data.) Home sales usually slow during the holiday season, and listings have traditionally declined by 11% in December from the previous month over the past 28 years, according to research firm Zelman & Associates. For the year, listings were up 11%, according to the ZipRealty data. Sales surged during the first half of the year as t ...

Home-mortgage rates eased slightly last week after rising severl weeks in a row, according to Freddie Mac's survey of Mortgage Rates. Rates have fallen for months in a row hitting rates not seen in decades but the problem for most borrowers availability.  Treasuries have hit record lows bringing mortgage rates down as well and allowing those who can get money access to some of the cheapest capital in many years.   sharp increases, according to Freddie Mac's weekly survey of mortgage rates. Stan Feagler, PureWest Christie's Great Estates Bozeman, Big Sky, Paradise Valley See attached article re-posted from the Wall Street Journal Rates had slumped for months, setting record lows in the process, as yields on Treasurys slid amid economic uncertainty. But yields began to rise near the end of last near, prodding rates higher. Mortgage rates generally track yields, which move inversely to Treasury prices. Still, rates remain lower than they were at the beginning of last year, "which s ...

  Bozeman, Montana - In 2010 there were 529 home sales, up from a low of 462 in 2009. The majority, in fact 88% of transactions are sales under $500K.  Transactions in this range were boosted by the home buyer tax credit while higher priced sales were hindered by lack of jumbo loan financing. There were 54 sales between $500k and one million compared with only 27 last year. In 2006 there were 109 sales in this price range, roughly four times the current level. There were ten homes sold for over $1.0 million in 2010 compared with over 20 in 2006 through 2008. From a percentage standpoint, 88% of sale transactions were for homes priced under $500K and 96% are for homes priced under $750K. Only 2% of sales were for homes price over $1.0 million compared with 5% in 2007.  Bozeman Area SF Only Total Number of Sales         ...

   This past year saw an increase in the number of home sales transactions as well as an increase in the overall dollar volume of sales transactions in the Bozeman Area, Montana.  Economists predict that a home shortage, or at least in certain markets, may materialize in 2011.  While there are still record foreclosures, the number of people need housing continues to rise each year.    While some markets are down to 6 -7 months of inventory, Bozeman still has ample unsold homes.  At the beginning of January, there were $343 million listings as compared to $178 in total sales during 2010.  As in many markets, the sub-$500K priced homes are moving well but over $1.0 million is slow.  See Bozeman Market Statistics for 2010.    Repost from Forbes.com Economist: Housing shortage coming in 2011 He says that if new houses aren't built soon in the U.S., there won't be enough next year. By Alexandra Zendrian of Forbes ...

Bozeman, MT - Key home sales indicators begin to improve in 2010. The total number of sales, the total dollar volume of sales and the average home price all trended up in 2010. The year 2009 was the lowest sales year from both a dollar volume and transaction number standpoint since 2005. That year was also characterized by marked slowdown in the sales of higher priced homes. As a percentage of sales, sales of homes priced under $500K climbed to 78% of sales from an average of close to 60% in the previous three years.    Bozeman Area Single Family Home Sales - $ Millions By Sales Level       2010 2009 2008 2007 2006 2005 ...