PureWest - Big Sky

Improving Real Estate Market in Big Sky Mirrors National Vacation Home Trend

Stan Feagler — Mon, 10 Jan 2011 15:38:00 GMT

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.

The difference with the vacation home market is that prices fell much further and much faster. In Big Sky, home prices are down from the 2007 peak by over 50% and while credit for vacation homes is often only available with crystal clean credit and 25% down, luxury home buyers are coming to the closing table with cash so as to not pass up deals in some of the nation's most exclusive resorts.

Buyers are oftentimes affluent baby boomers looking for a family gathering spot on holidays and a place they can semi-retire when the time is right. Technology is helping the trend as owners schedule longer and longer stays in their mountain locations making them a nice replacement office away from the city grind.

Stan Feagler, PureWest - Christie's Great Estates

Bozeman, Big Sky & Paradise Valley

By S. MITRA KALITA

Sales in many vacation communities across the U.S. soared last year to levels not seen since boom times, driven by deep discounts, cash purchases and buyers' rising stock portfolios.

On Mercer Island, Wash., waterfront sales nearly tripled in 2010, compared with a year earlier, reaching par with 2006 volume there. Sales on Hilton Head Island, S.C., rose 14% for the year. Palm Beach, Fla., experienced a 40% annual increase and a 54% increase in homes under contract, indicating an especially strong fourth quarter. Palm Beach sales volume now is comparable to its 2007 peak. These figures were gleaned by brokers in each locale.

"The proverbial train has left the station," said Ned Monell, an agent with Sotheby's International Realty in Palm Beach. "We haven't felt energy like this in a long time. Buyers sense that they've been on the sidelines long enough."

The question now is whether the momentum will last. The strength of second-home sales paints a stark contrast to the overall housing market, which is expected to worsen in 2011.

Existing-home sales in November rose 5.6% on an annualized basis, according to the National Association of Realtors, a trade and lobbying group. Last month, the Case-Shiller housing index of 20 cities showed prices across the U.S. fell in October, and most analysts predict another 5% to 10% slide in the coming year.

Data for the nationwide vacation-home market aren't tracked regularly. The National Association of Realtors conducts an annual survey of home buyers, but results for 2010 won't be out till March.

Yet the market for vacation homes, based on local sales data, appears to be booming. The comeback, NAR economist Lawrence Yun said, has been helped by gains in the stock market and an improving economy, which have made wealthier Americans more upbeat about the future. "It also implies that prices in some markets have come down so much that people are fighting for those properties," said Mr. Yun, noting that demand is strongest in areas close to stable labor markets.

According to the NAR, one in 10 real-estate transactions in 2009 was for the purchase of a vacation home. And though a small fraction of the overall market, it is significant because vacation homes are often big-ticket properties and attract discretionary buyers. Just four houses sold last year on Madeline Island, Wis., for example, but the island's average dwelling sells at two to three times the price of the county average, said Eric Kodner, a realty broker on the island.

Sales of second homes are showing an uptick even in more-affordable communities. In some locations, prices are even inching upward. Cape Cod sales climbed nearly 9% in 2010 from 2009, while prices rose 7%. Monroe County, Pa., in the heart of the Pocono Mountains, saw a 3% decline in transactions, but its Lake Naomi resort community was up nearly 15%. A one-acre plot off Lake Naomi recently fetched $1.1 million, a record deal for the area.

Still, in most markets where demand has improved, prices haven't. For Realtor Andy Twisdale in Hilton Head, S.C., it is too soon to rejoice; prices are down almost a third over the past five years. "People are buying at the very low end of the product," he said. "The financing is very difficult. Banks are requiring 25% down and crystal clean credit."

Buyers who qualify or can pay cash say this is the time to take the plunge. On New Year's Day, the Makarewicz family arrived in Pocono Pines, Pa., to look for a vacation home. They already own their primary residence in northern New Jersey and own a property in Damascus, a northeastern Pennsylvania town along the Delaware River. But the family says the latter doesn't offer enough things to do: Not enough shopping. Not enough activities for kids. Not even enough fish.

"How's the bass here?" Joe Makarewicz, a vice president for sales at a financial-services firm, asked Re/Max Realtor Rob Baxter as the two looked at floor plans.

The family plans to sell the Damascus house, which would allow them to pay cash for one near Lake Naomi. The resort community at Lake Naomi boasts pools, tennis courts, a recreation center and a golf course—and is equidistant from New York and Philadelphia.

Some second homes had been stuck on the market because sellers wouldn't budge on price; unlike owners of primary homes, they often aren't in a hurry to move.

"Sellers have become aware that they have to price their homes accordingly," said Harald Grant, a senior vice president at Sotheby's in New York's ritzy Hamptons region. "There's a perk in the market because a lot of prices have come down to where they should be."

This shift became clear to K. David Hirschey, who runs a consulting business in Minneapolis, as he hunted for a home on Madeline Island.

After competing in a summer swimming competition on the island, Mr. Hirschey decided to buy a home there, perhaps to rent it a few years and maybe retire there eventually. The first offer he made was rejected, he recalled, because the seller said, "We don't negotiate on properties here." The same thing happened with his bid on the next house.

Then he found a third property—four bedrooms, three baths—that began as a sale by owner, was taken off the market, then relisted under one broker, then another. It had been initially priced at $1.25 million, and remained on sale for two years.

"When I saw it, it was listed at $687,000," said Mr. Hirschey, a father of four children. He offered $530,000, furnishings included. "They wanted to negotiate and I said no," he said.

The tactic—an all-cash offer—worked, and Mr. Hirschey closed on the house in November, just in time for his family to spend the holidays there.

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Luxury Homes Going Green is Now a Trend in Big Sky, Montana

Stan Feagler — Fri, 07 Jan 2011 18:28:00 GMT

Advances in technology, products and methods have allowed luxury home owners to build at or near carbon neutral homes, even in relatively harsh climates. In Montana, cold weather patterns make common solutions such as photo-voltaics less practical but other techniques such a thermal exchangers, insulation, home siting and structural design efficiency for passive solar can pick up the slack.

Building in Mountain Resorts such as Big Sky, present additional issues for the green builder. Developers and builders take great care in site selection, materials selection and home design to maximize it’s efficiency. Architects such as Jerry Locatti and Candice Miller design luxury homes in Big Sky’s upscale resorts such as Yellowstone Club, Spanish Peaks and Moonlight Basin that are not only masterpieces consistent with the Montana vernacular, but also use energy, water and materials efficiently while maintaining ambient environmental quality.

Real estate agents at PureWest Christie's Great Estates have found an increasing number of home buyers taking into account the energy efficiency attributes of homes under consideration. The average return on investment for "green" building is measured at $50 to $70 per square foot over a 20 year period. While that may be a small relative to building costs in mountain resort communities, it helps justify what many custome home builders now include for socially responsible reasons.

See reposting from Wall Street Journal

By TARA LOADER WILKINSON

Even in a world where green has become the new black and words like "sustainable" grace everything from food packages to corporate mottos, the notion of building an eco-friendly luxury home can seem like an oxymoron.

IndigoPR Co

The luxury carbon-neutral home concept—in which properties attain a net zero carbon footprint—has been labeled "a conscience salve," "greenwashing" and "a complete misnomer" by critics.

"You think of a £30 million mansion built with the finest imported materials, the heated pools, the electrical gadgets, the air conditioning, the six-car garage and of course the private jet journey to get there. That can appear at odds with the environment," says Peter Mackie, managing director of HSBC-backed Property Vision, a U.K.-based estate agent.

The luxury carbon-neutral home concept—in which properties attain a net zero carbon footprint—has been labeled "a conscience salve," "greenwashing" and "a complete misnomer" by critics. Despite that skepticism, developers are hoping to turn a seemingly contradictory phrase into a 21st-century success story, laying plans for prime deluxe carbon-neutral property all over Europe. New homes in the U.K, Portugal, Italy, Morocco and Switzerland are being marketed to wealthy individuals around the world, with developers reporting strong demand.

In Morocco's Atlas Mountains, Anwar Harland-Khan, co-founder of green architect group Sustain Worldwide, is behind a carbon-neutral luxury development called L'Amandier. Construction of the project began last year and the villas are expected to be completed this year. All water will be drawn from on-site wells, and rainwater will be harvested for irrigation. Mr. Harland-Khan, who is also working on a Swedish carbon-neutral ski resort, says industry standards in Morocco are stringent and there are certificates provided to clients at each stage. Interiors, designed by U.K. and Moroccan architects Nick Gowing and Hicham Belhouari, have a flavor of Marrakech. Each villa has its own pool shaded by Bougainvillea and almond and citrus trees.

IndigoPR Co

Andermatt Swiss Alps, a major development overseen by Orascom Development Holding AG, which includes six luxury hotels, some 500 apartments and luxury villas and an 18-hole championship golf course.

Half of the sixteen villas, which are priced up to £425,000, have been bought before completion of construction. "Sustainable luxury is about providing for the needs of discerning people today, without compromising the needs of future generations," says Mr. Harland-Khan. "It is well within our grasp."

In the U.K., property developers John Hitchcox and Philippe Starck have launched the Cotswold's first carbon-neutral gated community, the Lakes by Yoo. The 160-villa development offers interior design by Jade Jagger and Kelly Hoppen. Villas are built using sustainable timber. There is an option for owners to purchase bolt-on solar panels, rainwater harvesting and wind turbines on their homes, with eco-packages priced up to £45,000. Properties cost between £800,000 and £1.5 million.

Meanwhile in Switzerland, the vision of Samih Sawiris, a billionaire Egyptian-born property developer, is taking shape. He is spending €1 billion to transform the sleepy village of Andermatt into a car-free community with over 500 apartments priced from around €1 million. Estimated completion is 2020. Half the energy for heating will be provided by wood fires, while the other 50% will come from geothermal energy.

Mr. Sawiris believes age and social conditioning can change perceptionswhen it comes to sustainability. "We are building with the well-educated next generation in mind. Carbon neutral will be important to them." He says he is footing the bill for the eco-credentials, which add a 10% premium to the project. "I feel I am setting an example," he says. "It is worth earning a bit less to have peace of mind. Reducing carbon should be everybody's goal."

Zero-carbon communities have been around for years—for example, the car-free neighborhood of Vauban in Freiburg, Germany, which was built in the mid-'90s and is characterized by rows of so-called "Passivhauses." The temperature in the homes is maintained through 30-centimeter thick insulation, airtight sealing and a heat recovery unit.

The problem is the aesthetics aren't everyone's cup of tea, says Property Vision's Mr. Mackie. Many carbon neutral homes take the form of prefabricated housing blocks built to a uniform height with little character. Buyers at the top end of the property market are rarely willing to sacrifice comfort and design for what they perceive to be unproven technologies in low carbon living.

"The eco-property movement has been hijacked by the 'woolly jumper brigade,' those that interpret eco-friendly as anticonsumerism, rather than reality," says Thomas Lipinski, an award-winning Polish architect and founder of Green Structures, a building firm. "The idea that these houses have to be ugly and badly designed is wrong."

Mr. Lipinski reckons that demand for well-designed luxury eco-homes will soar as carbon reduction will likely get more press and political attention. High demand will push prices higher. The resale value of a carbon-neutral property over 10 years could be 20% higher than a comparable "fossil build," he says.

His team is building a £400,000 zero-carbon country mansion in Hertfordshire for a client who initially contracted them for a standard home. When they suggested zero-carbon, he was skeptical. "He didn't like the idea of having to pay an extra 10%. But when I showed him how much he would save in the long run, and how much more he could sell it for, he soon agreed." Thermal and energy-efficiency related payback will take four years from occupation for an average home, taking into account new feed in tariffs on eco-homes in the U.K., says Mr. Lipinski. The mansion has a solar thermal heating system that can store up to 100 kilowatt hours of heat, a rainwater harvesting system and a heat recovery ventilation system.

But others believe technological innovations have a way to go before carbon-neutral luxury becomes standard. Charles McDowell, an estate agent in central London, points out that few top interior design firms are fully briefed on sustainability codes set by LEED (an internationally recognized green building certification system) or BREEAM (a voluntary measurement rating for green buildings established in the U.K.) Alex Michelin, director of Finchatton, a high-end interior design and development company, says: "The products out there are still far behind the labeling requirements set out under LEED and BREEAM. The whole supply chain—handles, fabrics, timber suppliers, electronics—all need to sign up to these codes before designers will have the information required to make informed decisions."

Although there are products that are both aesthetically pleasing and eco-friendly, there isn't as wide a selection on offer, and some of the products are one-time items, such as Lee Broom's Decanterlights, light fixtures made from lead crystal drinks decanters sourced from antique markets. "There are still major challenges in aligning the high-technology design features sought by buyers in the luxury market with sustainability, says Mr. McDowell. "With lighting, for example, most of the low-energy lighting systems are just not up to the standard demanded in this market."

The fact that most parts must be imported from Germany and Scandinavia is slowing progress too. Shelagh McMullan, a retiree living near Dublin, had a geothermal heater dug into her garden and solar panels fixed onto her roof. The implementation was arduous. "They sent the wrong size pipe from the company in Germany. We had to return it. It added another three months onto the process during which time my garden looked like a freshly ploughed field." But she wouldn't change the results. "Around 90% of my energy comes from the earth and the sun, my bills are next to nothing and my conscience is clear."

Big Sky Yellowstone Club at Full Throttle in 2011

Stan Feagler — Mon, 03 Jan 2011 18:21:00 GMT

Big Sky, Montana

Yellowstone Club at Full Throttle in 2011

The front page article of the Bozeman Chronicle on January 2, 2011 rang in the new year by highlighting the success of Sam Byrne, managing partner of CrossHarbor Capital Partners has put the bankruptcy of the Yellowstone Club in Big Sky, firmly in the tail lights. The club is now selling memberships, land and houses at a solid clip.

Since its founding in 1999, Yellowstone Club has made itself know as the only private skiing in America, and the interest has been tremendous. Sales to noteables such as Bill Gates and Barry Sternlicht have only heightened the status of the already exclusive club, arguably one of the most luxury clubs in the nation.

The main point was that the club has now recovered and the result is economic prosperity for both the club itself, but the area at large. Sam Byrne states that he hopes Blixseth is remembered for his extraordinary accomplishments and vision in creating the club as opposed to the more recent negative noise.

Clearly, the club’s successful recovery will do the most to focus on the positives of the past and potential of the future.

Byurne points out that since CrossHarbor took control of YC in July 2009, the club has:

1) Paid more than $8.2 million to jilted contractors

2) Completed more than $175 million in real estate sales as part of 51 deals consisting of unimproved lots, luxury homes and condominiums

3) Employed over 600 people, 235 of whom are full time

Clearly, Blixseth’s legal complications will continue to make news for some time to come but with a successful management team as owners and a seasoned Discovery Land Co. handling the day to day operations, Yellowstone Club will be one of the early successful recovery stories of the recent downturn.

See full article at Bozeman Chronicle

Stan Feagler, PureWest Christie's Great Estates

Bozeman, Big Sky, Paradise Valley

Big Sky Real Estate Listing Statistics at January 1, 2011

Stan Feagler — Sun, 02 Jan 2011 05:44:00 GMT

Big Sky Real Estate Listing Statistics at January 1, 2011

On January 1, 2011 there were a total of 359 listings in Big Sky and the Gallatin Canyon for a total listing volume of $338.9 million. Average days on market continued to be close to a year at 336 days.

Of the total listings, 222 are condos, 133 are single family residences and the remaining 14 are townhomes. Although single family residences represent 36% of the total listings, they represent 62% of the dollar listing volume.

The average listing price is $919K but the median price is substantially lower at $579K due to the large number of lower price condos making included in total listings. The average single family home is $1.59 million whereas the average condo lists for $533K.

Condo	Townhome	Single Family	All Listings
Number of Listings	222	14	133	369
Percent	60%	4%	36%	100%
Total Listing Volume in Millions	$118.5	$8.8	$211.7	$338.9
Percent	35%	3%	62%	100%
Average Listing Price	$533,685	$625,071	$1,591,866	$918,556
Median Listing Price	$375,000	$648,000	$999,000	$579,000
Average Days on Market	358	231	311	336

The following shows the number of listings by price category for Big Sky condos, townhomes and single family residences. The number of single family homes is evenly distributed around the average price of $1.5 million with 62% of the listings falling between $500k and $2.0 million.

Approximately 40% of condo listings are below $300K and only 12% fall above one million. Almost two thirds of the listed condos are priced at under $500K.

Only 3% of single family homes are priced under $300K while 50% are priced at over one million. The lion share of luxury homes are listings in Moonlight Basin and Spanish Peaks Club.

					Single		All
	Condo	%	Townhome	%	Family	%	Listings	%
0 to $300K	91	*41%*	0	0%	4	3%	95	*26%*
$300K to $500k	48	22%	3	21%	14	11%	65	18%
$500k to $750K	39	18%	9	64%	25	19%	73	20%
$750K to $1.0MM	17	8%	2	14%	24	18%	43	12%
$1.0MM to $1.5MM	12	5%			16	12%	28	8%
$1.5MM to $2.0MM	13	6%			18	14%	31	8%
$2MM to $3MM	2	1%			13	10%	15	4%
$3MM to $5MM					15	11%	15	4%
Over $5MM					4	3%	4	1%
Total	222	*100%*	14	*100%*	133	*100%*	369	*100%*

Comparative Prices for Big Sky, Park City and Winter Park, CO.

Stan Feagler — Sat, 01 Jan 2011 20:36:00 GMT

A Wall Street Journal Article posted price comparisons for three comparable luxury mountain homes in popular ski resort destinations. While it is always difficult to make comparisons as view sheds, ski-in ski-out access and access to amenities always plays an important role in pricing, comparisons among resorts is useful as buyers typically shop for second homes on a national level and weigh factors such as the nearby towns, the quality of the ski hill, access, etc. in making a purchase decision.

The property shown for Big Sky is the smallest but of very high end construction and has access to both Big Sky and Moonlight Basin Ski Areas.

Location:

Price $MM's

Sq. Ft.

Price per Sq. Ft

Big Sky, Montana

$2.95

4,000

$738

Park City, Utah

$2.75

4,400

$625

Winter Park, Colorado

$2.80

6,300

$444

See full article reposted below

Stan Feagler, Owner PureWest - Christie's Great Estates

Bozeman, Big Sky, Paradise Valley Montana

BIG SKY, Mont. $2.95 Million

A 4,000-square-foot, three-bedroom, five-bathroom home on 1.3 acres with ski access to both Big Sky a

nd Moonlight Basin resorts.

DETAILS: The furnished home, which has views of the Spanish Peaks, is built with chestnut floors and recycled-wood ceiling beams. The home has a two-car garage with a recreation room upstairs.

Photos

View Slideshow

Craig Hergert

Montana home

SKI ACCESS: The terrain accessible from the house is wide, groomed beginner and intermediate level trails. Moonlight Basin and Big Sky have a combined 5,512 acres of downhill terrain with 27 lifts. A one-day lift ticket costs $81.

snowfall AS OF THURSDAY MORNING: 138 inches.

FRIDAY'S FORECAST: Cloudy, high 9 degrees.

Information: Contact PureWest - Christie's Great Estates 406-995-4009

PARK CITY, Utah $2.75 Million

A 4,400-square-foot, five-bedroom, seven-bathroom home with no private acreage at the Canyons Resort, about a 10-minute drive from downtown Park City.

DETAILS: The newly built, fully furnished home has timber columns and heated patios. There are two laundry rooms, a ski mudroom and hand-finished, white oak flooring throughout the house.

SKI ACCESS: The Canyons Resort has access to more than 4,000 skiable acres and a newly built resort village that's about 100 feet from the house. Daily lift ticket prices vary; Friday's price is $89.

SNOWFALL AS OF THURSDAY MORNING: 166 inches.

FRIDAY'S FORECAST: Cloudy with snow showers, high 13 degrees.

SOURCE:Steve Chin, Chin MacQuoid Fleming Harris, Prudential Utah Real Estate, 435-647-8035, info@deervalleyrealestate.com.

WINTER PARK, Colo. $2.8 Million

A 6,300-square-foot, five-bedroom, six-bathroom home on a quarter of an acre in the Bridger's Cache gated community.

DETAILS: Built in 2006, the post-and-log-beam home comes with membership to the community's private Alpine Club, which has a clubhouse, concierge service and a fitness center. The home has two master suites, a hot tub and a wine cellar with a tasting room.

SKI ACCESS: Winter Park has 2,800 acres of downhill ski terrain including back-country bowls. A daily lift ticket costs $97.

snowfall AS OF THURSDAY MORNING: 126 inches.

FRIDAY'S FORECAST: Snowy, high 10 degrees.

SOURCE:Dennis R. Saffell, Coldwell Banker Mountain Properties, 970-726-0123,dsaffell@cbmp.com, via Realtor.com.

—Candace Jackson

What does "Revert to the Mean Price" for Housing Mean for Big Sky Real Estate

Stan Feagler — Sat, 01 Jan 2011 17:09:00 GMT

Case Shiller has released October National Home Prices indicating a fall of .8% nationally. Some housing analysts argue prices will fall a further 25% as they revert to the long term mean. Such analysis does not apply to luxury resort markets such as Big Sky, who have already seen their prices fall over 50%.

Big Sky to Receive Six Thousand Dollars for Classical Music Festival

Stan Feagler — Sat, 01 Jan 2011 16:03:00 GMT

Big Sky will receive $6K for the Classical Music Festival. The Festival is presented by the Arts Council of Big Sky and will be held this year Aug 12 - 14th of 2011.

Realtors® Say Mortgage Interest Deduction Vital to Home Ownership, Economy

Jason Frey — Tue, 28 Dec 2010 22:30:00 GMT

The following is a statement by National Association of Realtors® President Ron Phipps.

“As the leading advocate for housing and home ownership issues, NAR firmly believes that the mortgage interest deduction (MID) is vital to the stability of the American housing market and economy.

“The MID must not be targeted for change. NAR is actively engaged on behalf of the nation’s 75 million home owners and 1.1 million Realtors® to ensure that the current deduction is not modified as was recommended in the Deficit Reduction Commission report released today.

“The tax deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years. In a new survey commissioned by NAR and conducted online in October 2010 by Harris Interactive of nearly 3,000 homeowners and renters, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them.

“Recent progress has been made in bringing stability to the housing market and any changes to the MID now or in the future could critically erode home prices and the value of homes by as much as 15 percent, according to our research. This would negatively impact home ownership for millions of Americans, including those who own their homes outright and have no mortgage.

“Any further downward pressure on home prices will hamper the economic recovery, raise foreclosures and hurt banks’ abilities to lend and likely tip the economy into another recession resulting in further job losses for the country. It will effectively close the door on the American dream.

“NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Moonlight Basin offers Horse Drawn Sleigh Rides

Jason Frey — Sat, 25 Dec 2010 21:10:00 GMT

Horse Drawn Sleigh Rides

This winter season Cedar Mountain Corrals is offering a horse drawn sleigh rides through Moonlight Basin’s untouched terrain. Gather friends and family and come enjoy a scenic ride through untracked snow filled hills. Upon arriving at Ulrey’s Lake there will be warm drinks, snacks, children activities plus a bonfire.

Guests will enjoy live country music, s’mores, hot cocoa, coffee and campfire.

Contact our Mountain Concierge at (406) 995-7716 or Cedar Mountain Corrals at (406) 539-4065 for reservation and details.

Big Sky Residential Real Estate – Sales to Price Ratio Widens Sign of Bottom

Stan Feagler — Thu, 23 Dec 2010 20:08:00 GMT

Big Sky – Gap of Sales Price to Original Listing Widens

As we close our books for real estate sales in 2010, the gap between original list price and actual sell price widened. Actual sell prices in Big Sky were 79% of original list, compared with 87% last year and 92% the year before. Traditionally, the gap has ranged 5% - 10% but has grown recently as market prices have fallen and seller have had to deeply discount to sell. And it’s clear sellers want to make deals. The number of transactions is expected to increase by 50% over last year while the average sales price continues to fall.

Average sales price is expected to be $482k in 2010, down 17% from last year. With buyers and sellers meeting on price, it is likely a bottom has been reached for most types of real estate. Less expensive condos and townhomes moved briskly and the luxury mountain home markets is reviving as well.

Total real estate sales in Big Sky are expected to be $62 million* in 2010 on properties with original list prices of $79 million. The chart below highlights the trend in Sales Price as Percent of Listing for residential real estate in Big Sky and the Gallatin Canyon.

When taken in conjunction with the fact that transactions are up 50% over last year, it seems the market is putting in a bottom at current prices.

Period	Sales #	List Price	Sale Price	As % of List
2005	158	$90,808,000	$85,891,000	95%
2006	144	$131,239,000	$124,628,000	95%
2007	118	$130,217,880	$120,655,980	93%
2008	89	$99,814,000	$92,236,000	92%
2009	93	$61,842,000	$53,789,000	87%
2010	139	$78,537,000	$61,719,000	79%

Stan Feagler

Owner PureWest - Christie's Great Estates

Bozeman and Big Sky, Montana

Location:	Price $MM's	Sq. Ft.	Price per Sq. Ft
Big Sky, Montana	$2.95	4,000	$738
Park City, Utah	$2.75	4,400	$625
Winter Park, Colorado	$2.80	6,300	$444