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Real Estate Market Update for Northwestern Montana, by Viola Moss
We have, just in the past six months, transitioned from a seller's
market to a buyer's market in northwestern Montana.
Much of this is due to
the
impact of stricter bank mortgage lending requirements. Many [previously
commonplace ] investors and types of loans are now nowhere
to be
seen. I heard
just this week that the lenders are requiring the appraisers to go back only two
months (instead of six months) for comparatives. This is nearly impossible
with the sales spiraling downward. This is quite a reversal from just two
years ago, when we didn't have comps because the prices were going up so
fast due
to
demand and lack of inventory!
Also contributing to the "Buyer's Market" transition is that many buyers have
to sell their home from whence they are coming as their market has long become
stagnant.
Those who can afford it and have been "shopping" for a retreat the
past two years have been way too picky in their expectations for their money
and privacy. Many have been shopping for several years and now realize the
pickings are few, especially for properties without restrictive covenants to
raise animals and have a little farmstead. We have a lot more inventory but
only about 5% is covenant free for such use.
The other thing is that those who want waterfront or surface water will pay
more as it is primo and getting more scarce, especially without restrictive
covenants. Maybe one would want to address having a well with a hand pump and
consider
that the water is more easily protected from contaminants (but I will leave
this recommendation to Mr. Rawles). Many good properties at dropping
prices are passed up for this one reason.
Those who are demanding total privacy and can't afford a lot of land to allow
such need to understand that only about 8% of our land is privately owned.
(The good news to this is that the wildlife is abundant and one could easily
bug out to the woods.) Therefore, parcels are usually grouped together for
private purchase and use. So if you can get a property with a forest boundary
or near bigger parcels for privacy that is as realistic as one will get. There
may be a very few rare finds of "totally surrounded by forest" properties;
but, then they are not accessible year round and may have to deal with US Forest
Service road agreements. Would this cause one to be blocked in or out in the
near future? I think looking for a good sustainable neighborhood could be of
benefit if lieu of that perfect private piece, especially for those who can't
afford a lot of acreage.
Also, larger parcels, even if you could afford them are getting fewer and fewer
because they have been subdivided for more affordable land for buyers. These
usually come with the new restrictive covenants and have caused the off balance
of covenanted lands versus non-covenant.
Don't be fooled by the pictures on the MLS. There is nothing like actually
looking at a piece and seeing how the "lay of the land" is. One could
get 47 acres with creeks at the end of the road but it may not be always accessible
or where you would want to build is on the corner of the property right next
to the abutting owners summer cabin! The terrain and lay out can make all the
difference in what you think you might want or not want.
Another warning: If a property is priced really well, then there is usually
a reason. Yes, sometimes a seller actually prices something to sell. But be
sure
to know
what
the well depths are and especially, in this country, find out how much the
normal the spring water run-off/melt will be and affect the property. Your
20 acres may only have 5 acres of useable land year round.
Many have not made the moves and changes in location and lifestyle needed for
what's coming and are finding it is now "almost too late." They wanted
their cake and ice cream too. One foot in both sides of reality and disillusionment.
I envision that many will bail out of their current places and take what monetary
resources they can squeeze out of to get to refuge areas, like here [in northwestern
Montana]. They will abandon what they have in the cities and coastal areas
when they realize
it
is too late; but, maybe think they can get out by a hair's breadth. Hopefully,
they can settle for 2nd, 3rd, or 4th best before disaster strikes!
Another problem we see are buyers and their significant others not agreeing
that something has to be done! One will know and want to move now or acquire
a bug out retreat; yet, the spouse or children or parents
don't! I implore those who can foresee what is coming, to
go ahead and do what they know is needed. Otherwise, your loved ones will have
nowhere to run to. They will
be grateful. The worst that could happen, is that everything turns around and
you live a more crime free, pollution free, healthier lifestyle and environment
for you and your family. You can always go back to Egypt -- wherever that may
be for you. Yes, you may sense a bit of personal prejudice towards this part
of the country. I left my comfortable "Egypt" in 2004. <grin>
For others, they have actually lost almost everything due to job loss, natural
disasters, et cetera. They had a boat come by to rescue them and said, "God
will send me help." They finally realized they don't need a helicopter
to get them out and they need to move now! They know they
need to move in faith regardless of the obstacles now: though
with much less than they had anticipated
but thank goodness they are here or
on their way.
Again, this is a prime location for people to nestled into and hunker down
for the days to come. Even if you have to have a neighbor or community, you
will
find that the majority of these mountain people are prepared much more so than
other locations in the United States. Viola Moss. E-mail: mtnmama@vmre.net Web
site:
www.vmre.net
JWR Adds: Be sure to take a look at the growing list of properties
and agents available at SurvivalBlog's spin-off web site: www.SurvivalRealty.com.
