North of Montana Notes

**Buyers are jumping into the North of Montana market with prices finally starting to adjust correctly. I still think we will see more downward movement next year but the strong price drop of 2009 (20% +/- depending on property type) has encouraged patient buyers to step into the market.

Recap of a few sales within the past month:

**After being on the market for over a year, 209 25th Street sold for 1.525 million. The original asking price was 2.050. The house was a tear-down or major remodel candidate that gets discounted in comparison to other North of Montana lots due to its location. It is right next to San Vicente and shares a wall with Washington Mutual and the commercial district on 26th street. According to the MLS (Multiple Listing Service), This is the lowest tear-down sale of a lot that is at least 8,000 square feet since 2003.

**721 19th street originally listed for 2.050 million received at least 12 offers and countered the perspective buyer's at 2.150 with a request by the owner's to be able to lease the property back for a couple of months. The property is a 5+3, 2,418 sq. ft. home on an 8,900 sq. ft. lot. Though the home requires updating, it is in decent shape and has a solid floorplan. The property received so much interest because it is extremely difficult to find usable square footage over 2,000 sq. ft. on an 8,900 sq. ft. lot in this price range. Families looking to break into the Franklin Elementary School District were out in full force. A few years ago this home easily sells for around $2.6. . .

**231 18th street, a 1,829 sq. ft. home also on a 8,900 sq. ft. lot went into escrow within a week of coming on the market and sold for 1.968 slightly off the 1.994 list price. This Spanish style home is definitely a remodel candidate over time and will more than likely be expanded. However, it is an livable condition for now and on one of the nicest streets in the area. The house sold in March of 2008 to a developer for 2.325.

**340 21st place, a 1,728 sq. ft. home on a 9,000 sq. ft. lot sold for 1.810 in 35 days. The original list price was 2.095. The home will more than likely be torn down and is a solid comp for land value prices on 8,900 sq. ft. lots North of Montana. Lot values have gone from about 2.4-2.5 at the height of the market to between 1.7-1.9 based on the street.

**215 24th Street, a very nice 3,050 sq. ft. home on an 8,700 sq. ft. lot sold for 2.650 slightly off its 2.725 asking price. The home went into escrow in 27 days. It is in by far the best shape of the homes listed in this post and the back-yard has a very nice pool/spa. This is a solid mid-level entry home for the North of Montana area and is strong evidence to seller's the mid-level market is between 2.5 to 2.75 and not 3.0 to 3.25. . .