Taunya Fagan Bozeman Real Estate Blog: Montana Real Estate Blogs

In the Gallatin Valley, Montana, (Bozeman, MT) as is so often the case in the West, how best to manage growth is a contentious issue, pitting the rural-minded against the urban-minded, the agrarian-minded against the industrial-minded, those who want wild western land, or at least large western ranches, against those who want productive western land; sometimes the two sides overlap, as in the case of the western farmer seeing the land in wheat and the western land conservationist seeing the land in native grass, or the western rancher retaining the land for cattle and the urbanite retaining the land for recreation.   

There are a wealth of ways in which western land can be controlled for future use: clustered development, transfer of development rights, zoning, conservation easements, and citizen-initiated zoning districts, but no single or combined use of these controls pleases everyone. Here is a piece from NewWest.net on the issue and the various "tools," as Susan Duncan calls them, toward pleasing everyone:

 Redefining Urban and Rural: Why Growth "Tools" Haven't Succeeded  

from NewWest.net, Susan Duncan, 1-28-08

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Montana launches online job resource-employers need skilled workers...

In Gallatin County, Montana, today's employers need to teach as much as anything else. The demand for skilled workers in the Bozeman constuction industry is serious. Most employees who come into a skilled construction job lack the skills necessary to do the work. People are quitting school to take relatively high-paying, low-skilled jobs because of the basic need for all types of workers, especially those in the construction trade.

"In the Gallatin Valley, we see a lot of commercial construction. ... You need a lot more people skilled in masonry, steel workers," David Smith, President of the Bozeman, Montana Chamber of Commerce, said. "That's a problem that came to our economy in Montana and Bozeman especially, where we didn't have those skills we needed." 

The state of Montana is going to the Internet to solve what economists call "structural unemployment," which happens when workers lack the skills companies demand. Montana has launched an online resource tailored to line up the skills workers train for with the skills employers demand.

"We look at it from this standpoint--Students need to have more information. The earlier we can give them that information, the better," said Shaunda Hiderbrand, Director, Montana's Department of Labor and Industry's Work Force Development.

The website is the Occupational Supply Demand System (OSDS), which is paid for by a Perkins Grant, a federal grant program promoting high-skill, -wage, and -demand occupations. The site gives in-depth information on wages, demand, and skill needs for hundreds of jobs in Montana and other states.

Montana's unemployment rate is 3.6%, compared with the U.S. rate of ~5%. Each state has a system; check out yours...

The site states: "The National Occupational Supply Demand Consortium develops and evaluates methodologies for supply/demand analysis of occupations to assist with training and education program planning."

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Taunya Fagan - Bozeman Montana News Stories    406.579.9683   taunya.fagan@prumt.com

Is your town proactive enough on the homeless issue? 

If you believe your community could do more about its homeless but you don't know how to begin, contact Family Promise, a national organization "...committed to helping low-income families nationwide to achieve lasting independence... [Family Promise helps] communities mobilize to provide safe shelter, meals, and support services for homeless families and through programs designed to redress the underlying causes of homelessness."

If homelessness is an issue and your town needs some additional assistance, contact http://www.nihn.org/ to discover how you can start a Family Promise program in your town. Bozeman is a small city, but we started our own Family Promise of Gallatin Valley and the outpouring of money and assistance from the Bozeman-Gallatin Valley community has been outstanding!

Homelessness; it could happen to anyone...

I recommend reviewing and supporting this by calling the office of Montana's Senator, Max Baucus, chairman of the Senate Finance Committee. Contact Jim Messina (202) 224-2611 (Messina is Baucus's Chief of Staff)

Here is a truncated portion of the article:

January 24, 2008 - The National Association of Home Builders (NAHB) took out a full-page ad in USA Today and sent letters to the House and Senate leadership  today, calling on Congress to make housing incentives a key part of any economic stimulus package being crafted on Capitol Hill.  

"Any stimulus plan needs to address the housing downturn in order to stabilize financial markets and get the economy moving forward," said NAHB President Brian Catalde, a home builder from El Segundo, Calif.  

In addition, Catalde urged Federal Reserve policymakers to enact further interest rates cuts when they meet at the end of the month to restore confidence and increase liquidity in the financial markets.  

To help stimulate the economy and address the current housing situation, NAHB, in a letter to lawmakers, urged them to consider the following policy options when crafting a stimulus package:  

- Create a tax credit for the purchase of a home. 

- Expand the net operating loss (NOL) tax deduction. Under present law, a business loss can only be deducted from taxes paid from the previous two years.

- Expand the mortgage revenue bond program.

- Designate housing as an eligible investment for tax-preferred retirement accounts.

- Increase the conforming loan limit for Fannie Mae and Freddie Mac.

- Modernize the Federal Housing Administration (FHA)..."

Read More at NAHB 

Here is the letter from NAHB to Congresspeople:

Dear Speaker Pelosi, Majority Leader Reid, Minority Leader Boehner, and Minority Leader McConnell,

On behalf of the 235,000 members of the National Association of Home Builders (NAHB), I am writing to share our views on the economic stimulus discussions currently taking place in the Congress. Congress last passed economic stimulus legislation in 2002, when housing was a key economic driver that significantly softened and shortened the economic downturn. Now, the reverse is true and housing is contributing to slow economic growth. NAHB respectfully urges the Congress to include in any stimulus package incentives that address the underlying causes for this crisis and to include housing incentives in the package.

NAHB expects 2008 housing starts be approximately one million; a fifty percent decline from the over the two million housing starts realized in 2005. Some reduction in building was expected, given the above-norm production levels and resulting excess inventory in some parts of the country. However, even with this historic reduction in starts, the inventory "overhang" of housing continues to be a serious problem. The for-sale inventory of new homes is 505,000, which represents a 9.3 month supply; a record for the last twenty years in terms of both months supply and number of units.

Existing home inventory and sales are in a similar position with a 10.3 month supply at the current sales rate of 4.3 million units per year. The excess inventory of homes-for-sale places significant downward pressure on housing prices, which present a significant danger to the national economy. Recent actions of the Federal Reserve, such as cutting the federal funds rate to 3.5%, may help stimulate housing demand. However, the Federal Reserve only controls short-term interest rates, and because of the fear of inflation, changes in these rates can have little or even negative effects on long-term mortgage rates.

If housing prices fall 10 % from peak to trough, as many economists expect, then households spend less because they feel (and are) less wealthy. One key reason for reduced consumer spending is that housing wealth is the primary source of savings for most households. If housing prices fall, then homeowners' wealth decreases. As a result, households may decrease current consumption to offset the lost wealth. According to the Congressional Budget Office (CBO), the fall in housing prices would reduce consumption and ultimately subtract 0.4 to 2.2 percentage points January 22, 2008 Page 2

from Gross Domestic Product (GDP) growth. Given that many economists expect only 1% growth in GDP this quarter, the CBO estimates indicate that falling housing prices can easily push the economy into recession. In dollar terms, the CBO report estimates that a 10% housing price decline would subtract $55 to $316 billion from GDP.

The decline in the home building industry is also having direct effects on national economic growth. In the third quarter of 2007, the latest quarter for which data is available, residential fixed investment (home building) subtracted a full percentage point from real GDP growth. Falling activity for home builders also has led to large job losses. On January 4, 2008, the Bureau of Labor Statistics reported that the economy produced only 18,000 jobs in 2007. For home builders, 28,500 jobs were lost in December 2007 alone. Total home building employment is down 293,000 since March 2006; a decline of 8.5%, with forecasts for further declines in the year ahead. Furthermore, many home builders are now reporting substantial financial losses when only a few years ago they were generating jobs, providing local development and paying taxes.

Please find attached a summary of policy options [above] recommended by NAHB to aid the Congress in addressing the housing crisis and, more importantly, help stimulate the economy. NAHB looks forward to working with the Congress and the Bush Administration to craft a comprehensive economic stimulus package that returns the economy to vibrant growth and expansion. Thank you for your consideration of our views.

Sincerely,

Gerald M. Howard

Executive Vice President

and Chief Executive Officer

cc: House Ways and Means Committee

House Financial Services Committee

Senate Banking Committee

Senate Finance Committee

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Taunya Fagan Bozeman Montana Real Estate    406.579.9683   taunya.fagan@prumt.com

A good friend of my husband's informed him today that his business partner in San Francisco met with some Google afficiandos yesterday, Jaunuary 23, 2008, and was informed by them that Google will not longer index keywords. This does NOT apply to other search engines, but Google is used in ~75-85% of all web searches. Has anyone else heard this information? 'Could change the world of SEO.

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Marty Ummel of CARLSBAD, CA, and millions of others believe they paid too much for the houses they bought at the top of this latest housing boom. But Ms. Ummel differs in that she's suing her agent, stating it was all his fault.

According to the NYT article, 

"Ummel states that the agent hid the information that similar homes in the neighborhood were selling for less because he feared she would back out and he would lose his $30,000 commission. Real estate lawyers and brokers say the case, which goes to trial in North County Superior Court on Monday, is likely to be the first of many in which regretful or resentful buyers seek redress from the agents who found them a home and arranged its purchase. When your house appreciates $100,000 in the first six months, you're not quite as concerned that maybe the valuation was $25,000 or $50,000 off," said Clifford Horner of the law firm Horner & Singer. But when your house goes down, you ask: ‘Who might have led me astray here?' Real estate lawyers and brokers say the case, which goes to trial in North County Superior Court on Monday, is likely to be the first of many in which regretful or resentful buyers seek redress from the agents who found them a home and arranged its purchase."

This may very well set a horrible precedence, especially now when so many are looking to bail out of their over-mortgaged homes. If Ummel wins, we'll have to quickly change fields...know any good law schools?

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Taunya Fagan Bozeman Montana Homes    406.579.9683   taunya.fagan@prumt.com

The Gallatin County, Montana county commissioners contemplate Gallatin County, MT zoning as the means to manage both future and present growth. With close to an 11 percent increase in the county's population since 2000, protection of the region's agricultural legacy and preservation of its natural beauty are intrinsic to retaining the appeal that keeps people visiting and relocating to Gallatin County, which is seated in Bozeman, Montana.

It's a toss up as to whether Gallatin's countywide zoning regulations throughout the Gallatin Valley will have much of an impact on southwest Montana rancher's and farmer's property; regulation details are in the process of being hammered out and could take a while longer because opposing sides see zoning coming from opposite directions: one side thinks zoning should be top down, the other side believes zoning needs to be bottom up; thus the slow progression.

Parceling of Gallatin County land into smaller properties, which the more recent residents now live on, occurred prior to passage of Montana's subdivision review requirements in 1973:

"a division of land or land so divided that it creates one or more parcels containing less than 160 acres that cannot be described as a one-quarter aliquot part of a US government section, exclusive of public roadways, in order that the title to or possession of the parcels may be sold, rented, leased, or otherwise conveyed and includes any resubdivision and further includes a condominium or area, regardless of its size, that provides or will provide multiple spaces for recreational camping vehicles or mobile homes."

Many Gallatin Valley residents have placed their Montana land into conservation easements, which amounts to having already cashed their transfer development development rights. The question is what about those who haven't decided what to do with their land? Should they have the same possibilities with cashing in on their southwest Montana land as those who have profited in the past?

Intelligent growth and property rights and keeping the balance between the two is a touchy subject in the southwest Montana region, which has lost a wealth of large Montana farms and Montana dairies recently. The question remains, "Should Gallatin County County remove potential land development values through strict county zoning?"

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Taunya Fagan Prudential Montana Real Estate     406.579.9683    taunya.fagan@prumt.com

Above Photo by Alex Diekmann, Trust for Public Land

Bozeman, MT ranks in fourth place out of the top 20 fishing towns in the U.S. according to Field and Stream Magazine. A positive aspect of Montana fishing is the 1985 Stream Access Law, allowing everybody recreational access to rivers and streams to the ordinary high-water mark, regardless of streambed ownership. For non-residents a license is inexpensive: one needs to purchase both a Conservation License for $10 plus a Montana Fishing License for $15 for 2 consecutive days, $43.50 for 10 consecutive days, or $60 for the season. It's worth a visit all you fishers...

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Taunya Fagan Montana Recreation Property    406.579.9683   taunya.fagan@prumt.com

According to this week's The Economist (Jan. 12th-18th, 2008) magazine, pg 67: "Warning Lights," America appears ready for the R-word: RECESSION, according to its "R-word index" formula. The Economist's simple formula, based on how many uses of the word, "recession," appear in both the Washington Post and New York Times, supposedly predicted both the 1981 and the 2001 recessions. The R-index began rising in 2nd quarter 2007 and is soaring in 1st quarter 2008. If this jump sustains itself for this quarter, it will be in line with the R-indexing period leading up to the 2001 recession. Turn off your TV, burn your newspaper, cancel the magazine subscriptions, America...

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TaunyaFagan.com    406.579.9683   taunya.fagan@prumt.com

Subdividing rural land is dead and premium property, like Montana ranches and Montana live water properties, is quickly going to those who can afford it, said Clark Wheeler, a real-estate appraiser with Norman C. Wheeler and Associates in Bozeman, Montana. Wheeler is the author of an annual Montana land valuation study released this week.
   A 47 percent increase in 2007 was the increase in sales of large tracts of rural land in Montana over the previous year. The increase is because of rising demand for land and popular amenities like forests and water access rather than land appreciation, according to the study. "The main thing we're seeing this year, is what's selling are the better properties," Wheeler said Wednesday.

For More on this story Click Here

Click Here for 7 Ranges Bozeman Ranches - Private Luxury Montana Land   

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TaunyaFagan.com    406.579.9683   taunya.fagan@prumt.com

WEAKENING DOLLAR & DECREASING HOME PRICES: According to the Statesman.com a growing number of foreigners are purchasing a second home in the US for work and play and investment. Cities like New York and Miami have been second home meccas for wealthy and successful foreigners. This trend is increasing. One in five US realtors has sold a home to a foreigner in the past 12 months, according to National Association of Realtors.

More on this trend at Statesman.com 

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Now that Christmas is over, please do not forget the homeless, especially homeless families with children. In 2005 there were an estimated 98,452 homeless families, 41% of the entire homeless population. A dearth of affordable housing  and poverty primarily cause family homelessness, and 35% of those living in poverty are children! The time of the year and the present housing issues are compounding the situation.

For More of the Report at NationalHomeless.org Click Here

also visit

Family Promise National Home Website 

Thanks

January 8, 2008-According to Lawrence Yun, NAR's Chief Economist, during the next few months, existing home sales should remain steady based upon pending sales; they may even increase later in 2008 and into 2009. Part of the reason is because recent job creation has resulted in some new wealth, but should people buy or wait a bit longer? When will a meaningful recovery happen? Go To Article

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The premiere Nordic ski resort, Lone Mountain Ranch, built in 1977 and based in Big Sky, Montana, was just sold to Everlands, a company that buys the world's historical resorts in places like the Bahamas, Alaska, Martha's Vineyard, and beyond. Lone Mountain Ranch will soon be member-based, like The Yellowstone Club, also in Big Sky, MT. In an effort to include the Big Sky locals, the previous owners, who also created the Ranch, made strict agreements that Big Sky locals be allowed to continue using the 80km of nordic ski trails.

For more go to Premier Nordic Ski Resort Lone Mtn Ranch SOLD

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Taunya Fagan Montana Ski Property - Ski in Ski out    406.579.9683    taunya.fagan@prumt.com

Bozeman has a new mayor, Kaaren Jacobson, sworn in on January 7, 2008. In an effort to pay for Bozeman's growth, she stated her desire is to increase road impact fees, which is contrary to a recent vote by the former city commission to reduce impact fees to 65 percent of the full rate, which is $9,172. 

More than 100 people packed the Gallatin County Courthouse not only to listen to her state of Bozeman address but to also watch the swearting in of the 2008 city commission.

For More On Bozeman's New Mayor Click Here

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A New Criterion in Luxury Land in Bozeman, Montana

Find your private residence nestled in the foothills of Bozeman Montana

Seven Ranges is a private, gated, luxury land community, on Portnell Road, Bozeman, MT, offering 18 tracts, 18 home sites on over 1300 acres. This secluded, 18 tract setting in Montana's Gallatin Valley foothills lies between Bozeman and Big Sky with easy driving to skiing and easy walking to miles of trails for enjoyment and access to thousands of acres of Forest Service roads and land. 

Parcels range from 40 to 138+/- acre parcels. Horses welcome! Gated Entry. TRULY Magnificent Views. Close to Bozeman but still rural, private, and quiet.

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Click For More on 7 Ranges Bozeman Ranches    406.579.9683   taunya.fagan@prumt.com

Tim and Edra Blixseth, the divorcing couple who built the famed Yellowstone Club in Big Sky, Montana, plan to sell the club for between $400-$600 million. Read more at: Yellowstone Club Sale 

The "Club," as locals call it, is a private ski and golf community for the super-rich, boasting members like Bill Gates and Steve Burke. Membership is by invitation only and costs $300,000 to join, with annual membership dues above the $18,000 reported in the WSJ Article mentioned above.

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Taunya Fagan Big Sky Luxury Homes    406.579.9683   taunya.fagan@prumt.com

You can now view real estate news, views, and data for Bozeman, Big Sky, Belgrade, Manhattan, Livingston and other southwest Montana cities of Park and Gallatin Counties, Montana on the new website Bozeman Real Estate Report,

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Blog entry updated 10.6.08. For more southwest Montana real estate information or help with the Bozeman Real Estate Report, please email: info@bozemanrealestatereport.com

Here is a link to an article in today's Bozeman Daily Chronicle Bozeman Regional Airport Expansion (article is in green) regarding the Gallatin Field Gallatin Field (Airport) airport expansion, a result of the Gallatin Valley's continued growth and anticipated future growth. Next week, airport directors will choose an architectural firm to design the first phase of a $60 million, 20-year expansion plan. The area's premier outdoor activities make Bozeman, Big Sky, and beyond a summer AND winter destination...maybe even a full-time destination!

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TaunyaFagan.com    406.579.9683   taunya.fagan@prumt.com

Building upon my December 13, 2007 Blog Homelessness Blog 12.13.07 about helping the homeless this holiday season, I'd like to share an article in today's Bozeman Daily Chronicle newspaper Gallatin Valley Food Bank 1.02.08 (article is in orange) about our community and its support of the region's local foodbanks. I urge you to consider supporting the local food bank in your area.