2016 Year in Review
The past year was many things to Americans. Things we will remember about 2016 are health care costs, reduced gasoline prices, and negative campaigns. For Billings, we saw broader residential and commercial development. Real estate finished out the year with 56.6% of the listings sold and an average sale price of $240,135. The average sale price rose 2% this past year. Just 10 years ago, 53.3% of the listings sold with an average sale price of $170,455.
While one usually hears “Location, Location, Location” there are many factors which influence buyers. One of them is neighborhood schools. Billings School District #2 is in the process of completing a 2nd new middle school and a redistricting plan is in place. Visit http://www.croppermap.com/billings/ to find your local school.
The Trump Administration is expected to make changes in banking and finance laws that affect mortgage loans. Interest rates are expected to move slightly higher in 2017 with mortgage rates up slightly from 2015. The National Association of Realtors expects TRID regulations will be reduced, possibly saving home buyers $255 per sale. In addition, student debt is holding back first time Homebuyers. They usually make up 40% of sales, the numbers are slowly inching up from 32% in 2015.
The shortage of housing supply is causing increased prices across the country. Sellers are staying in their homes an average of 10 years, up from a historic 6.5 years – due to change in circumstances from the great recession. Housing prices have gone up nationally while the median household income has decreased since 2006, from $57,423 to a $56,516. At least in Billings, our average median income of $55,000 will purchase a home valued at approx. $225,000, depending on taxes and insurances. Currently Billings has over 300 listings under this price, which is leading more people to homeownership!
“The greatest work you will ever do will be within the walls of your home”
– Harold b Lee