MISSOULA MARKET REVIEW 
July 1, 2010
Missoula continues to be named on the ‘best’ list. I was recently interviewed for an article about the best communities to retire. The current edition of the Delta Airlines magazine mentions Missoula in an article about the top fishing spots. And, of course, in only its fourth year, the Missoula Marathon received top honors as best overall marathon. If you didn’t believe it before, it is abundantly clear now—Missoula has been discovered!
So if all of this notoriety starts people thinking about moving here, what are their housing options? For some, renting is a lifestyle choice, not just a temporary stop on the way to homeownership. For others, they may want the same single-family detached with the yard/garden, or they may be getting out of the home maintenance business with a condo or townhome.
According to the 2009 Housing Report, (available at www.missoularealestate.com under Market Trends), rental prices and vacancy rates have remained fairly steady. For homeowners, by far the single-family detached remains the most popular choice with 295 units sold so far this year but the sale of 60 condos and townhouses reflects that as a housing option available in the Missoula market as well.
But it’s not just about the housing any more. The housing option is driven as much by lifestyle as it is by the features of the property itself. It’s still about ‘location, location, location,’ but the trend is for buyers to consider what the location says TO them rather than what it says ABOUT them. Is there room for a garden? Is it near a hiking trail? Can I bike/walk to work, to get groceries, to the art museum or the library? How long will it take me to mow, or do I have to at all?
Which brings me back to the ‘best’ lists. All of them are connected in some way to lifestyle. Missoula neighborhoods reflect almost 20 distinct lifestyle choices that residents have made and offer many options for those considering moving into any one of the neighborhoods. Missoula may be many things, but ‘cookie cutter’ it is not. So this weekend, as you gather for the fireworks at the Mall, hike the ‘M,’ walk the Kim Williams Trail, go fly fishing or wrap up your training for the Missoula Marathon, check out your surroundings as though you’ve never seen them before.
And then explore your neighborhood at www.livemissoula.com. Neighborhoods are places; they are people; they are history and stories. People reading those ‘best’ publications will find out what we already know…that together we are ‘Growing a Missoula to Treasure.”
A recent article about the loan restructuring program for homeowners in danger of losing their homes demonstrates perhaps as well as anything the challenges in trying to figure out the real story. The headline was that the program had failed and, as proof, the article included the numbers who were eligible and the few people who had taken advantage of it. In addition to that, many had started through the process but never completed it. Further on, however, there was an explanation that for many of those who applied, their financial situation was such that, even with restructuring, they were not going to be able to pay the lower loan amount. And some of the people who started through didn’t finish when they realized that was the case. So, did the program fail or didn’t it?
The article demonstrates several reasons why accurate housing information can be so elusive:
1. The same set of numbers can be used to support two opposing conclusions.
2. There is no quick and easy explanation for some of the things happening.
3. National headlines may not reflect a local reality
While the focus is on the overall housing picture, the influence of short sales and foreclosures, and best guesses as to what may be next, there are some other housing related stories that are worth noting.
1. EPA Lead Paint Rule: For many years, sellers of properties built before 1978 have been required to provide a lead paint disclosure brochure to prospective buyers. Effective October 1, 2010, EPA will enforce its Lead Renovation, Repair, and Painting rule. EPA is issuing a certification, and remodelers, electricians, heating and air conditioning technicians, and other contractors must adhere to lead-safe work practices including special equipment filters and a ban on open flames. For more information go to www.epa.gov and search for lead paint.
2. Homeowner’s Insurance: In the details of getting the transaction to closing, the need for homeowner’s insurance might get overlooked. The possibility of being able to secure insurance quickly at the last minute may be remote if not impossible. Like so many aspects of the transaction, there are rule changes, regulations, and more in-depth analysis that affect the availability of and access to insurance.
On the surface, it may appear as though the biggest hurdle in getting a transaction closed is finding a buyer with the finances to purchase the property at a price agreeable to the seller. Obviously, that is what makes the transaction possible, but it may be in knowing how to navigate through the details that the possibility actually becomes the reality of a closed sale. Both homebuyers and homesellers need to make sure that they have the benefit of whatever resources are necessary to address all aspects of the transaction and assist through any unexpected twists and turns.
The process may be more complex with less predictability than consumers once thought. But complex and unpredictable are the reality that real estate professionals deal with every day, whether it is brokerage, financing, appraising, home inspections. Just like homeowner’s insurance is designed to protect against the unexpected and unpredictable, the best insurance for the transaction itself is to have the benefit of services from local, knowledgeable real estate professionals. Missoula has some of the best.
MISSOULA MARKET REVIEW July 15, 2010