Even with all the construction going on in the Bozeman area, housing inventory is, and may continue to be, constricted with a surge of new first-time buyers entering the market. Our housing shortage is following the national trend with the millennial generation, the nation's largest generation to-date, coming of age to buy a home.
Consider Buying In The Off-Season
Buying early in the season can give you some breathing room to negotiate with a seller.The number of buyers in the market steadily increases from the start of the new year until the buying season reaches its peak in mid-summer, typically leaving the winter months to be a much slower time for the real estate market. More buyers mean more competition, which can sometimes lead to bidding wars.
As you can see from the graph, the number of closed sales for single family homes in the Bozeman area and Belgrade, Montana consistently peaks in the summer.
Start Shopping Around For a Mortgage
A small difference in a mortgage interest rate may save you thousands of dollars in the long run. The National Association of Realtors expects a gradual increase of mortgage rates over the next two years, reaching an average of 4.6% by 2017, and 4.8% by 2018. So if you're expecting to buy a home this year, don't wait. Start shopping around now for the best mortgage rate, and don't settle with first rate-quote you receive.
Possible Tax Benefits For Homeowners In 2017
Our President-Elect's tax plan this year is set to dramatically increase standard tax deductions for homeowners. If this plan is implemented, it can make a significant financial impact for homeowners. However, some Republicans in Congress are proposing some tax provisions that may eliminate tax deductions for real estate entirely. It's still too soon to say, but this is something to keep an eye on this year.
Read more about what's expected in our 2017 Market Outlook
National Housing Shortage
Valuable Lessons For First-Time Homebuyers
Job Growth In Gallatin County