BOARD OF DIRECTORS
March Message
The year-end statistics have been out for a while and the analysis of them is getting to be old news. Hard as it is to believe, we are quickly heading toward the end of the first quarter of 2010 when we will begin to analyze this year’s numbers. Besides the numbers, what are the stories coming out of the market from REALTORS® who interact with buyers and sellers every day?
It is still unclear as to the final impact that short sales and foreclosures are having on the Missoula market. Both are occurring, although it is difficult to track specific numbers. One reason that makes these trends difficult to track can be demonstrated with the example of a house that is in pre-foreclosure but sells before the actual foreclosure process occurs. It is unknown if that sale is a short sale as well, and the only information required is that a pre-foreclosure home has sold. What happens in between these events is the real story and is something the numbers can’t tell.
But short sale or foreclosure may not be the only two options for a property. There is increased activity reported in lease options, whereby a seller leases the property for a period of time, giving the lessee the option to purchase. This requires documents different from a rental agreement and both parties will want to make sure that they have the paper work in place that protects their individual interests.
Another story that the numbers can’t tell is how the current market measures against the same time last year. Politically, a new administration was in office. TARP (Troubled Assets Relief Program) money had been released but its affect was not yet clear and the income tax credits were not in place. The numbers may indicate that there is more market activity, but it begs the question as to whether this is the result of normal market function and pent-up demand or whether it is driven by buyers eager to take advantage of the low interest rates and tax credits.
Don Hewitt, the late producer of CBS’s 60 Minutes, when asked about his success, said “Tell me a story” and made that the title of his autobiography. Buyers and sellers in today’s real estate market could take a lesson from Mr. Hewitt. If you want to successfully complete a real estate transaction in the Missoula market, it’s important to know the story, not just the numbers, and understand how that story meshes with your own. It’s important that the stories come from within the market, not a general analysis from the nightly news. Get the local story from local professionals. Missoula has some of the best.
