up, inventories are down and the word “appreciation” has actually resurfaced. The fact this word even makes its way into a conversation about real estate is testament to recovery. And while not every market is experiencing a turnaround, there has been strong national improvement over the last 18 months. Some deem this the “raindrop recovery”(picture the cement when it starts raining), with recovery splashing down on certain markets and missing others. This is, however, fairly normal and recovery always has to start somewhere. What does this mean for us now in Missoula? Nobody is quite sure what to expect over the long term, but presently potential homebuyers are taking advantage of the residual benefits of the “Great Recession”—low borrowing rates and relatively low home prices compared to just a few years ago. It is this combination, along with the “fear factor” of job loss on the decline, that has propelled a new generation of homebuyers into a market full of opportunity. At this time in 2009 the average 30-year fixed rate was just over 5 percent, a rate not seen 18
Missoula Independent
Homesteader 2013
since the Eisenhower years of the late 1950s. Borrowers were scrambling to refinance as this opportunity, handed out by the U.S. Treasury through a first wave of stimulus spending, was expected to be short-lived and far too great to pass up. Four years later, the average 30-year fixed-rate mortgage sits at about 3.5 percent. What does all of this mean for us today? There are a lot of things to be learned from the housing boom. Most Americans now realize, accept and embrace the real virtues of owning a home–family and community stability, pride of ownership and owning a piece of “The American Dream.” Homes are no longer ATMs, and those entering the market now are truly qualified to own and understand the associated risks. We are back to a time when owning a home is becoming more affordable, makes sense, and most buyers understand the true commitment that comes with buying their first home. And with that commitment there is a new sense of hope and an energy that continues to make the housing “bright spot” something we can all celebrate. B