market update at glance febyary 2012

HERE WE ARE ROARING THROUGH 2012. TWO MONTHS GONE AND TWO MONTHS OF WINTER WITH JUST SOME COOL WEATHER, NOTHING LIKE THE LAST TWO WINTERS IN TERMS OF SNOW. INTEREST RATES ABOUT AT 3.89% FOR A 30 YEAR FIXED RATE MORTGAGE, 20% BELOW LAST YEAR AT THIS TIME; THOSE TWO THINGS COMBINED ARE SHOWING UP IN THE HOME SALES IN YELLOWSTONE COUNTY. CLOSED SALES AT A NICE CLIP ABOVE 2011, IN THE FIRST TWO MONTHS, ALTHOUGH I WOULD CONSIDER IT A BIT OF MISS MATCH OF A COMPARISON WITH THE FACTORS MENTIONED ABOVE. THE REAL BRIGHT SPOT IS THE DECREASE IN INVENTORY THAT ALONE WILL GET THE MARKET BACK TO BALANCE FASTER THAN INCREASE SALES. THE BALANCE OF THE INVENTORY DROP MEANS SELLERS WERE DISAPPOINTED WITH WHAT THE MARKET WOULD ALLOW FOR A SALES PRICE AND HAVE MOVED TO THE SIDELINES UNTIL PRICING PROSPECTS LOOK BRIGHTER. WHEN YOU LOOK AT THE SINGLE FAMILY BUILDING PERMITS NUMBERS YOU CAN SEE THE EFFECT OF BOTH WEATHER AND INTEREST RATE ENVIRONMENT CREATING POSITIVE MOMENTUM, HOPEFULLY FOR NEW HOME CONSTRUCTION AND RESALE’S THE INCREASED ACTIVITY IS INCREASED INTEREST IN THE MARKET AND NOT ALL ATTRIBUTABLE TO THE WEATHER PULLING SALES FORWARD IN THE YEAR. THE RENTAL MARKET CONTINUES TO MOVE TOWARDS THE OWNERS SIDE WITH DECREASING INVENTORY MEANING PRICE INCREASES WILL BECOMING FOR RENTERS TOWARD MID SUMMER TO EARLY FALL. NEGOTIATIONS STILL ARE PRETTY TESTY BETWEEN BUYER AND SELLER, WHICH I EXPECTED, YET THE BUYERS HAND STRENGTH WILL WEAKEN WITH THE DECREASE IN INVENTORY AND INCREASE IN SALES AS WE PROGRESS THROUGH THE YEAR.