Market Timing by Kent Lembke

June 2008

Is the real estate market down and the housing crisis intensifying? According to a recent Wall Street Journal article, the worst is behind us. Of course they are referring to a nationwide scope not the Flathead Valley. Our sales data for Northwest Montana seems to indicate a two year slowing. For example total sold listings in March 2006: 371, March 2007: 249, and March 2008: 164. Comparisons of most months in 2006, 2007 & 2008 show a similar decline.

The good news is that as prices fall, housing becomes more affordable in the Flathead. Interest rates are staying low and incomes are growing (albeit slowly). As a result, more buyers can afford to buy now including first time home buyers. Prospective home buyers are asking: Will prices go lower? That’s anyone’s guess, just like predicting the stock market. My thoughts are if you buy a home with a mortgage and plan on staying in that home for 3 years or longer now is a great time to buy. Trying to “market time” the bottom of housing prices is foolish if you want to own a home and start building equity. Now is the time. Find a home you like at AmericaGoFish.com, make an offer through America Interactive Real Estate and receive a rebate at closing. Check out details on our website. - Kent