2009 Market Analysis

Dear Friends,

The 2009 MLS (Multiple Listing Service) numbers are in and although it looks like we have regressed to sale prices comparable to those in 2003, and many homeowners have found themselves in dire straits, there are some terrific buying opportunities at all price ranges in Southwest Montana. Buyers are looking for tremendous value and listing prices continue to recede; maybe not at the rate that buyers would like to see, or that sellers are comfortable with, but they do continue to fall. With the US Government Tax Credit incentives for first time home buyers, and "repeat" buyers (for more info: http://www.irs.gov/newsroom/article/0,,id=204671,00.html ), we anticipate that the beginning of 2010 will show an increase in sales volume, and if our predictions are correct, we will be set for solid demand and stable to improving home prices in 2010 and beyond.

With a few days of the New Year under our belt, we remain positive and look forward to what the year has in store for us!

We would like to share the following analysis with you:

The following statistics are based on the Gallatin Valley:

We consider $1-$1.899 million the residential "luxury market" and $1.9 million+ the "high-end" of our residential luxury market. The following data was pulled from the Multiple Listing Service.

TOTAL NUMBER of RESIDENTIAL PROPERTIES SOLD OVER $1 MILLION
2006:29
2007:30
2008:25
2009:10

NUMBER of RESIDENTIAL PROPERTIES SOLD for $1.9 MILLION and UP
2006:29
2007:4
2008:6
2009:2

TOTAL "SOLD" MARKET VALUE of ALL RESIDENTIAL PROPERTIES SOLD OVER $1 MILLION
2006: $50.898M
2007: $43.985M
2008: $46.477M
2009: $18.384M

TOTAL "LIST" VALUE of ALL RESIDENTIAL PROPERTIES SOLD OVER $1 MILLION
2006: $54.694M
2007: $47.808M
2008: $52.318M
2009: $21.134M

TOTAL "SOLD" MARKET VALUE of RESIDENTIAL PROPERTIES SOLD for $1.9 MILLION and UP
2006: $21.769M
2007: $9.175M
2008: $22M
2009: $7.75M

TOTAL "LIST" VALUE of RESIDENTIAL PROPERTIES SOLD for $1.9 MILLION and UP
2006: $24.034M
2007: $10.295M
2008: $25.75M
2009: $8.685M

HIGHEST RESIDENTIAL SALE PRICE
2006: $4.25M
2007: $2.5M
2008: $6.75M
2009: $5.5M

The following is a comparison of the median list and sold prices (average found by arranging the values in order and then selecting the one in the middle) of properties that sold over $1 million:

Median List Price
2006- $1.6 million
2007- $1.525 million
2008- $1.565 million
2009- $1.625 million

Median Sold Price
2006- $1.5 million
2007- $1.385 million
2008- $1.325 million
2009- $1.397 million

The following is a comparison of the average list and sold prices of properties that sold over $1 million:

Average List Price
2006- $1.886 million
2007- $1.595 million
2008- $2.092 million
2009- $2.113 million

Average Sold Price
2006- $1.755 million
2007- $1.465 million
2008- $1.859 million
2009- $1.397 million

Average Days on the Market
2006- 114
2007- 151
2008- 239
2009- 261

Primary Residence of Luxury Buyers ($1.9 million and up)

2006- Montana: 2 Nevada:1 New Jersey: 1 California: 1 Connecticut: 2
2007- Montana: 3 Wyoming: 1
2008- Montana: 3 California: 1 Tennessee: 1 Maryland: 1
2009- Montana: 7 Wyoming: 1 Texas: 1 Ohio: 1

In regards to sales of vacant land/acreage in the Gallatin Valley, 19 properties sold in 2009. 5 of these properties sold in the $650,000- $1 million range. The median sale price was $285,000 and the properties sold for 87% of asking price. In 2008, 24 properties sold in this price range with a median price of $346,000.

The following statistics are based on Park County:

We consider $500K - $899K to be the luxury market and $900K+ to be the top of the "residential" luxury market in Park County. The following statistics will be based on these ranges and were pulled from the Multiple Listing Service.

TOTAL NUMBER of RESIDENTIAL PROPERTIES SOLD OVER $500,000
2006: 15
2007: 13
2008: 14
2009: 6

NUMBER of RESIDENTIAL PROPERTIES SOLD for $900,000 and UP
2006: 5
2007: 5
2008: 6
2009: 2

TOTAL "SOLD" MARKET VALUE of ALL RESIDENTIAL PROPERTIES SOLD OVER $500,000
2006: $12.108M
2007: $10.787M
2008: $11.476M
2009: $6.441M

TOTAL "LIST" VALUE of ALL RESIDENTIAL PROPERTIES SOLD OVER $500,000
2006: $13.014M
2007: $11.489M
2008: $12.923M
2009: $7.584M

TOTAL "SOLD" MARKET VALUE of RESIDENTIAL PROPERTIES SOLD for $900,000 and UP
2006: $5.970M
2007: $5.562M
2008: $6.542M
2009: $4.050M

TOTAL "LIST" VALUE of RESIDENTIAL PROPERTIES SOLD for $900,000 and UP
2006: $6.238M
2007: $5.801M
2008: $7.582M
2009: $4.8M

HIGHEST RESIDENTIAL SALE PRICE
2006: $1.5M
2007: $1.5M
2008: $1.187M
2009: $3M

The following is a comparison of the median list and sold prices (average found by arranging the values in order and then selecting the one in the middle) of properties that sold for $500K or more:

Median List Price
2006- $779K
2007- $895K
2008- $840K
2009- $797K

Median Sold Price
2006- $680K
2007- $800K
2008- $756K
2009- $687,500K

The following is a comparison of the average list and sold prices of properties that sold over $500K:

Average List Price
2006- $867K
2007- $883K
2008- $923K
2009- $1.264 million

Average Sold Price
2006- $807
2007- $829
2008- $819
2009- $1.073 million

Average Days on the Market
2006- 166
2007- 156
2008- 285
2009- 201

Primary Residence of Luxury Buyers ($900,000 and up)
2006- Montana: 2 Florida: 1 New York: 2 Oregon: 1
2007- Montana: 1 Florida: 2 California: 1 Missouri: 1
2008- Montana: 3 California: 1 Tennessee: 1 Maryland: 1
2009- Montana: 1 Georgia: 1

In regards to sales of vacant land/acreage in Park County, 21 properties sold in 2009; $438,500 being the highest sale price (this property was listed at $754,000). The median sale price was $120,000, and on average, these properties sold for approximately 13% below asking price. In 2008, 32 properties sold, with a high sale price of $1.15 million, and a median sale price of $119,500. On average, these properties sold for approximately10% below asking price.

Despite the fallen real estate market, The Collection Sotheby's International Realty ranked among the top 10% of real estate firms affiliated with the Multiple Listing Service in 2009.