FHFA: Billings home prices decline year-over-year
For the first time since 1989, house prices in Billings are lower than they were a year ago. This according to the Federal Housing Finance Agency's House Price Index (you can read more about how the HPI measures the Billings market here).
The HPI lags just a bit, so the latest figures are based on transactions completed in the fourth quarter of 2009. Home sales during that period average 2.66% less than a year earlier. While this is not a terrible drop, you can see from the graph that it is the culmination of several years of declining growth that finally went negative:
Note that we had 5 years of abnormally high, 6%+ home price appreciation. That could not last forever, and now it appears to be tumbling down. With the euphoria of the $8,000 tax credit wearing off this spring, I don't see a return to high appreciation rates anytime soon.
But I thought Billings was like a safe government bond that gives you 5% year in and year out?
Don't hold your breath for a Gazette article on this any time soon. When they finally get around to it later this spring no doubt Doug won't be quoted due to "deadline pressures".
Not totally related, but found this interesting to play around with.
Unemployment Graphs
Related to the Seeley Lake gal pumping up the market. I lived and developed some small lots there in the 80's and 90's and know the broker author. Typically industry hack. Seeley Lake properties have lost 50% of their value since 2005.
Come on, Anonymous, it's time to jump back in to investing. She says it's a great time to buy a second home at Seeley Lake.
In August she had a post saying: "There is a 3 1/2 year supply of homes for sale in Seeley Lake! ... BUYERS, WHAT ARE YOU WAITING FOR?? the interest rates are still VERY low and Sellers are getting more motivated every day!."
In April of last year she said that "Buyers are Returning!"
And finally, just about one year ago she said that "Now is a great time to buy a home!".
Does the NAR send out special watches to its members? Because somehow, it's always a great time to buy.