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The National Association of Realtors (NAR) has ignored numerous sexual harassment complaints, including against its president Kenny Parcell, according to over two dozen women who spoke to the New York Times in a bombshell exposé about the trade group.

In all, 29 women described to the Times a culture of fear, intimidation and harassment at the 1.56 million-member nonprofit group and its subsidiaries. Nineteen women told the Times they experienced sexual harassment.

“There is the sexual harassment, and then woven into it, this culture of fear,” Stephanie Quinn, the organization’s former director of business meetings and events, who worked at NAR for more than a decade, told the Times.

Sixteen complaints reviewed by the Times involved Parcell, a Utah Realtor who began climbing the leadership ranks in 2020. Three women went public with what was described as a pattern of inappropriate behavior by Parcell, who runs the Kenny Parcell Team at Equity Realty in Spanish Forks, Utah.

Kenny Parcell, NAR President

One woman reported that Parcell placed his hands down his pants in front of her, while another woman received unsolicited lewd photos and texts from him, including a picture of his crotch. Parcell denied he had done anything inappropriate. He said the picture in question was of a promotional belt buckle and he was asking for input on the design.

A third woman, Janelle Brevard, who filed a lawsuit in the summer, disclosed a consensual relationship with Parcell that lasted months and ended with the NAR president allegedly retaliating against her. (Brevard settled a lawsuit with NAR that included a $107,000 severance payment and signed a nondisclosure agreement, the Times reported.)

Another woman, Amy Swida, a director of business meetings and events at the organization, filed an internal complaint of sexual harassment or gender discrimination by Parcell. Swida alleged that he was cruel and condescending to her after she became pregnant. She worried about being cut off from future opportunities.

“I’m scared every day coming to work,” she told the Times. The NAR said Swida’s complaint was documented and she was promoted several months later. Parcell also denied any wrongdoing toward Swida.

Quinn, who left NAR in 2022, told the Times that Parcell attempted to arrange meetings with younger colleagues at night and that she was constantly expected to hug the president. After she put out a palm to block a hug, Parcell began raising issues with her work. NAR said it never received a complaint from Quinn.

“His behavior is predatory,” Quinn, 52, said of Parcell. “I feel like I was constantly screaming, ‘This is so inappropriate.’”

In a written statement to the Times rebutting the allegations, Parcell said: “I am a friendly and outgoing person in a world that is growing ever more cynical, conflicted, and cold. Well-intended actions on my part are being twisted and distorted.”

Parcell was paid $164,569 by NAR for the 2021 tax year when he was first vice president, according to the nonprofit’s tax records. Charlie Oppler, the NAR president in 2021, was paid $294,798 that year.

Women comprise a majority of the trade group’s membership, but NAR has been led by men for years. Multiple women interviewed by the Times described other alleged incidents they say weren’t addressed by NAR.

Suzi Dunkel-Soto, a Realtor based in California, said the trade group’s chief legal officer never responded to her multiple complaints after a male colleague took a photo under her skirt at a NAR Leadership Academy graduation ceremony in 2018. NAR told The Times it “addressed this incident appropriately with the male Realtor involved.”

Despite a history of complaints of sexual harassment, discrimination, and retribution by Parcell and other leaders, 29 women told the Times that NAR hasn’t addressed sexual harassment issues.

“Everything gets brushed under the rug,” Dunkel-Soto told the Times.

The trade group told the Times it has acted responsibly and responded to complaints properly.

“We follow clear reporting procedures to investigate any issue of concern brought to our attention and take corrective action as needed, up to and including staff termination and member suspension,” the statement said.

Bob Goldberg, the group’s CEO since 2017, told the Times he wouldn’t characterize sexual harassment at NAR “as a problem,” though he later said through a spokesperson that, like any organization, “we are not immune to these challenges, and any single allegation concerns me.”

The NAR, which has more than $1 billion in assets that controls access to nearly every American home listing, is facing other threats – two explosive multibillion-dollar lawsuits threaten to upend the entire system propped up by NAR.

The plaintiffs, representing home sellers around the country, accuse the trade group and several of the country’s largest brokerages of using MLS rules to charge excessive fees and unfairly prop up agent commissions. Should they lose, a judge could rewrite the rules of how agents get paid and it could result in up to $30 billion per year in savings for American consumers. Damages for the cases could be north of $40 billion.

James Kleimann is the managing editor of HW Media’s newsroom.

Source: housingwire.com

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Heading into the day, the market held out the possibility of heightened volatility surrounding a speech from Fed Chair Powell  at the annual Jackson Hole symposium.  Hosted by the Kansas City Federal Reserve Bank, Jackson Hole draws central bankers and economists from around the world and has occasionally served as a venue that offers a sneak peak at potential shifts in policy or the economy itself.  

More frequently, Jackson Hole is notable only for its great expectations and underwhelming reality.  This year’s example falls into this category.  

Powell was slated for the opening remarks.  Market watchers were waiting for him to say something about the “neutral rate of return” (also R* or “R-Star”)–a hypothetical policy rate resulting in stable economic growth and stable, on-target inflation.  The recent obsession over R-Star is due to the fear that the low baseline for interest rates has moved up permanently for a variety of reasons that can’t possibly be determined or calculated any time soon.

As such, it wasn’t too surprising to hear Powell say “we cannot identify with certainty the neutral rate of interest, and thus there is always uncertainty about the precise level of monetary policy restraint.”  Translation: he has no idea if R-Star is changing or will change.  

The other even crazier anticipation surrounded the Fed’s 2% inflation target with some market watchers wondering if the Fed was considering increasing the target due to the same sort of underlying structural issues that would underpin a higher R-star.  Powell was even more clear on that topic: “Two percent is and will remain our inflation target.”

In addition, the Fed Chair was extremely consistent with the press conference from July with respect to the delicate dance of fighting inflation without crippling the economy.  On both occasions, by his own admission, they are flying blind to some extent. In his words, the Fed is “navigating by the stars under cloudy skies,” and that “we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data.”

The market was apparently hoping for something a bit more rate-friendly.  The reaction largely consisted of the futures market shifting bets on the level of the Fed Funds Rate at various points in the future.  It’s not so much that traders thought Powell was saying the Fed was more inclined to hike, but instead, simply less inclined to cut as quickly.  In other words, markets were pricing in almost 2 rate cuts of 0.25% in by the middle of next year, but after this week, it’s closer to only 1 rate cut.

All of the above kept some pressure on longer term bonds this morning, resulting in the average mortgage lender offering higher rates out of the gate.  As the day progressed and bonds stabilized, several lenders offered mid-day improvements.  The net effect is slightly higher rates for the average lender.

When it comes to events that inspire volatility, next week is a higher probability than Jackson Hole.  There are multiple economic reports with strong, recent track records of influencing the bond market and, thus, interest rates.  Starting on Tuesday, there is an important report every single day of the week.  Several days have more than one, and Friday will bring the release of the jobs report for August–arguably the most important report of any given month.

Source: mortgagenewsdaily.com

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U.S. lenders issued a staggering $1.1 trillion in home loans between April and June, marking the biggest quarter in at least two decades, according to mortgage data firm Black Knight. The record quarter highlights the growing disparity between homeowners who are primed to take advantage of perfect conditions, and those who are simply desperate to not lose their homes.

The surge in activity was driven primarily by an unprecedented rush to refinance. With rates ticking down to historic lows, homeowners tested lenders’ capacity limits with more than 2.3 million refinancings in the quarter, the most in nearly 17 years. Seventy percent of the total loans originated by dollar value in the second quarter were refinancings, according to Black Knight’s data.

Most took advantage of 3% interest rates to lower monthly payments; cash-out lending comprised just 3 out of 10 refi originations in the second quarter, Black Knight found. 

The third quarter is shaping up to be even wilder – locks on refis that are expected to close in the third quarter are up 20% from the second quarter. 

“With market conditions as they are and given the recent delay of the 50 basis points fee on GSE refinances until December, we would expect near-record low interest rates to continue to buoy the market,” Ben Graboske, president of data and analytics for Black Knight, said in a statement. “After all, there are still nearly 18 million homeowners with good credit and at least 20% equity who stand to cut at least 0.75% off their current first lien rate by refinancing.”

And while the purchase market was down 8% largely due to coronavirus-related reasons, rate locks suggest that pent-up demand could lead to record activity in the third quarter.  

“Purchase locks in Q3 2020 have already made up for the losses of a COVID-impacted Q2 – and then some – based upon normal seasonal expectations,” said Graboske. “In fact, rate locks are suggesting that we could see Q3 purchase lending break typical seasonal trends and rise by 30-40%, which would push us to a new record high.” 

The growing inequality in America, however, is also highlighted in Black Knight’s Q2 report. Though unemployment dropped to 8.4% in August, more than 11 million jobs have disappeared since March. To compound matters, supplemental federal unemployment benefits totaling $600 a week expired in July. Markets with the biggest delinquency increases in July were in New York, New Orleans, Las Vegas, Orlando and Miami.

Loans that are more than 90 days past due – known as “serious delinquencies” – increased 450% from pre-pandemic levels, though total loans in forbearance continued to drop from a high in May.

Of the 3.9 million homeowners still in forbearance, 2.85 million have had the term of their forbearance plan extended while 1.07 million still remain in their original term, according to Black Knight. Homeowners with less equity and unfavorable credit were more than twice as likely to have entered forbearance plans.

Source: housingwire.com

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Mortgage rates over the last seven days followed a split path, but an important rate dropped. Average 15-year fixed mortgage rates inched upward, while average 30-year fixed mortgage rates receded slightly. For variable rates, the 5/1 adjustable-rate mortgage notched higher.

As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate — a short term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank’s goal is to reduce prices by curtailing consumer spending.

During its July 26 meeting, the Fed initiated a 25 basis point (or 0.25%) hike to its federal funds rate, marking its 11th increase in the current rate hiking cycle. The most recent increase could have an impact on mortgage rates, but experts say the markets may have already factored it into rates.

Current mortgage rates for August 2023

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree.

The Fed doesn’t set mortgage rates directly, but it does play an influential role. Mortgage rates move around on a daily basis in response to a range of economic factors, including inflation, employment and the broader outlook for the economy. A lower inflation rate is good news for mortgage rates, but the potential for additional hikes from the central bank this year will keep upward pressure on already high rates.

Rather than worrying about mortgage rates, though, homebuyers should focus on what they can control: getting the best rate they can for their financial situation.

To increase your odds at qualifying for the lowest rate available, take the steps necessary to improve your credit score and to save for a down payment. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you make an apples-to-apples comparison among lenders.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 7.57%, which is a decrease of 3 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will usually have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.82%, which is an increase of 1 basis point from seven days ago. You’ll definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, as long as you can afford the monthly payments, there are several benefits to a 15-year loan. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 6.50%, a climb of 4 basis points compared to last week. With an adjustable-rate mortgage mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, you could end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. Because of this, an ARM could be a good option if you plan to sell or refinance your house before the rate changes. But if that’s not the case, you might be on the hook for a much higher interest rate if the market rates shift.

Mortgage rate trends

Mortgage rates were historically low throughout most of 2020 and 2021, but increased steadily throughout 2022 as the Federal Reserve began aggressively hiking interest rates. Now, mortgage rates are well above where they were a year ago. What does this mean for homebuyers this year?

“Mortgage rates have hovered in the 6% to 7% range for the past 10 months. Though home prices have softened slightly nationally, the still-high cost of borrowing means hopeful home buyers have felt little relief,” said Hannah Jones, economic research analyst at Realtor.com.

However, if inflation continues to decline and the Fed is able to hold rates where they are and eventually cut them, mortgage rates are likely to decrease slightly in 2023. However, they’re highly unlikely to return to the rock-bottom levels of just a few years ago.

The most recent housing forecast from Fannie Mae calls for the average 30-year fixed mortgage rate to close out the year at around 6.6%.

“Mortgage rates have been volatile for some time now and while they could eventually start trending down over the next six months to a year as inflation growth continues to cool, their path is probably going to be bumpy,” Channel said.

We use rates collected by Bankrate to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:

Average mortgage interest rates

Product Rate Last week Change
30-year fixed 7.57% 7.60% -0.03
15-year fixed 6.82% 6.81% +0.01
30-year jumbo mortgage rate 7.58% 7.66% -0.08
30-year mortgage refinance rate 7.80% 7.75% +0.05

Rates as of August 25, 2023.

How to find the best mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. Make sure to think about your current financial situation and your goals when searching for a mortgage.

Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate.

Beyond the mortgage interest rate, additional costs including closing costs, fees, discount points and taxes might also affect the cost of your house. Make sure to comparison shop with multiple lenders — like credit unions and online lenders in addition to local and national banks — in order to get a loan that’s the right fit for you.

How does the loan term impact my mortgage?

When picking a mortgage, remember to consider the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are the same for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (usually five, seven or 10 years). After that, the rate fluctuates annually based on the market rate.

When deciding between a fixed-rate and adjustable-rate mortgage, you should take into consideration the length of time you plan to live in your home. For those who plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages can sometimes offer lower interest rates upfront. However, you might get a better deal with an adjustable-rate mortgage if you only have plans to keep your home for a couple years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. It’s important to do your research and think about what’s most important to you when choosing a mortgage.

Source: cnet.com

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Achieving the dream of homeownership takes on a unique flavor when set against the backdrop of the Sunshine State – Florida. Whether you’re drawn to the enchanting coastal allure of Miami Beach condos or the serene suburban vibes of Tampa, FL, houses, navigating the path to owning a piece of Florida paradise comes with its own set of considerations. From the annual dance of hurricane season to the nuances of local architecture and environmental factors, being well-informed through an indispensable home inspection is paramount before buying a home. 

Across Florida’s diverse regions, seasoned home inspectors have encountered an array of challenges that potential homebuyers should be aware of. In this Redfin article, we delve into six things to look out for when buying a home in Florida.

1. Regularly assess for mold

“For more than three decades, we’ve been serving the entirety of Florida. Our specialization lies in thorough mold assessments. Given the yearly exposure to hurricanes in our region, homes often experience significant water intrusion and damage from these storms. Unfortunately, some of these issues remain hidden until much later,” shares Inspection Services of Florida LLC.

“We collaborate closely with numerous customers who encounter respiratory problems. In such cases, we conduct assessments to determine if mold is the underlying cause. As a result of the history of hurricanes, we frequently uncover storm-related damage that was either left unaddressed or concealed, often due to house flipping.

Prior hurricanes have taught us a valuable lesson: comprehensive mold inspections are vital before purchasing a home. This step ensures transparency and helps safeguard your investment for the long term.”

Courtesy of Inspection Services of Florida LLC

2. Pest intrusion

“On one of my home inspections I observed a hole in an exterior stucco-covered foam trim board. As I continued my inspection I noticed a Woodpecker flying around the area. So I decided to remove myself a distance away to see what the bird was doing. It only took a few minutes when I saw a Woodpecker land at the entrance of the hole in the trim board. I realized what was happening, the Woodpeckers using its bill to find insects. In this case the material that the Woodpecker was pecking on was easy to penetrate and so it continued to burrow out an entrance into the trim material,” says RTS Inspections.

“Exterior grade cement coated (stucco) foam molding is made of Styrofoam or Polystyrene Foam, which can be fabricated into many different shapes. This product is used nationally in many climates. Foam is easy to cut into and shape as needed. Stucco covered foam trim is very beneficial as a source of insulation and as a decorative element around exterior surfaces of a home, like around windows and doors.

As with all structures, there is always a concern for potential animal intrusion. Animals are very good at finding ways to get into areas to build nests. Rodents for instance will jump off tree branches that are too close to the building and land on roofs. Once they land they search for gaps and holes to enter into.

When inspecting a home it is crucial to look for possible entry points around the house and report on those areas. The next step for the inspector is to observe areas inside the house that might be impacted by those entry points. In the case of this Woodpecker, the damages were limited to just the exterior trim board. In other cases, I have seen gaps in soffits and eaves where animals have penetrated and entered into attics. In the case of animal or pest infestation, a licensed pest removal contractor is recommended.”

Courtesy of RTS Inspections 

3. Storm impact

“Whether factual or mere folklore, the moniker ‘Lightning Capital of the World’ is a label frequently associated with Florida,” shares Sherlock Home Inspections. “Given the prevalence of storms in the region, it’s a nickname that holds some truth. However, with these climatic conditions comes a distinctive set of challenges, particularly in the realm of electrical systems. 

Take a close look at the copper wires shown below. While discoloration might typically arise due to oxidation, the distinct blue hue of these wires stems from a surge triggered by a lightning storm. Upon more comprehensive inspection, a host of additional issues were brought to light—underscoring the importance of addressing electrical concerns with precision and vigilance in a region renowned for its electrical intensity.

Courtesy of Sherlock Home Inspections

In a state prone to high winds and intense rainfall, addressing roof problems promptly is imperative. Florida’s climatic conditions make it imperative to identify and rectify roofing issues as soon as they arise. It’s crucial to recognize that even minor roof concerns can rapidly snowball into significant complications. Given this reality, securing the services of a knowledgeable Home Inspector becomes paramount. A seasoned professional who understands the intricacies of roofing systems can detect potential red flags, ensuring that minor hitches are nipped in the bud before they evolve into major complications. With the right expertise at your side, you can confidently navigate the challenges of maintaining a secure and resilient roof in Florida’s ever-changing weather landscape.”

4. Termites

“Florida is susceptible to termite problems due to its warm and humid climate, which creates a conducive environment for these pests to thrive. Termite swarms are a common occurrence in Florida during the warm and humid months. These swarms are often a sign of an established colony nearby, and they can be quite alarming to homeowners,” warns Next Step Inspections.

“The two most common termites are:

Subterranean: These are the most common and destructive type of termites in Florida. They build their colonies underground and create mud tubes to access wood above ground. They can cause significant damage to structures if left unchecked.

Drywood Termites: These termites infest dry wood and do not require contact with soil. They can be found in furniture, wooden beams, and other wooden structures. Their infestations can be hard to detect until significant damage has occurred.

We have found that if the wooden structures go untreated for long periods of time and these insects invade the wood, severe damage can impact the integrity and the structure. We have seen areas that are unsafe to walk in the attic due to significant termite damage. In cases where the damage is detrimental, a structural engineer or building contractor will review the damages to recommend the proper repair. 

Dealing with termites in Florida often requires professional pest control services. Regular inspections by experienced technicians can help detect infestations early and implement effective treatment plans. We recommend having a Wood Destroying Organism (WDO) Inspection when you are considering the purchase of a property. This inspection can help identify other issues the home inspector may not be qualified to include in their report.”

5. Polybutylene piping

“Polybutylene piping stands as a nightmare for both property owners and the insurance industry at large. As a solution for home re-piping, polybutylene piping emerged on the scene. It offered flexibility, ease of use, and cost-effectiveness during its time. While it had been in use since the 1970s, its popularity soared in the 1980s and 1990s. However, it was eventually discontinued in the mid to late 1990s due to its susceptibility to leaks,” informs Orlando’s Best Home Inspection. “The chlorine present in municipal water systems caused joints and piping to fail. Typically, the interior of the tube is gray or black, while the exterior can range in blue, black, or gray. The lettering ‘PB’ may also be visible, which is the clearest giveaway.

Presently, many homes still feature polybutylene piping, prompting insurance companies to mandate replacement with approved alternatives like PEX, CPVC, or copper piping.

In our practice, we thoroughly assess this issue during both our standard Orlando home inspection and our Orlando 4-point inspection. We frequently encounter cases where partial re-piping work has been carried out on visible portions of the supply system, only to find original polybutylene piping remaining in less accessible areas such as the attic. Correcting this problem is costly and presents a major obstacle in obtaining home insurance.”

6. Stucco cracks and waterproofing

“Most homes in SouthWest Florida feature exterior walls made of concrete block with stucco finishing. It’s common for stucco to develop hairline cracks over time. These cracks are generally not a structural concern as long as they are too narrow to fit a penny. If a penny can fit, it raises some cause for concern,” suggests Golden Rule Home Inspections.

“When cracks in the stucco follow the block pattern, it indicates excessive settlement in the foundation. Again, if these cracks are wide enough to accommodate a penny, they warrant attention.

The waterproofing of SouthWest Florida’s concrete block and stucco homes relies on painting the stucco. If a crack appears in the stucco, the waterproofing becomes compromised, potentially leading to water intrusion and subsequent mold growth. To address this, it’s recommended to repair the crack by applying a small amount of Mor-Flexx caulking or an equivalent product. After applying, gently rub it in with a sponge or foam paint brush to blend it into the wall’s finish, followed by painting the wall. Mor-Flexx boasts a mortar-like appearance that stretches like rubber, retaining its elasticity over the years.”

Courtesy Golden Rule Home Inspections

7. Insurance challenges and regional concerns 

“I think the biggest issue in Florida right now is insurance companies leaving the state. They have become very particular about roofs. Even though most asphalt shingle roofs last more than 20 years, they do not like roofs past 15 years old. Even in very good condition. This due to the losses coming from hurricanes in the recent past,” says Pillar To Post Home Inspectors.

“Insurance inspections need to be done on top of getting a thorough home inspection. 4-Point (Roofs, Plumbing, Electrical, and HVAC) Inspections are expected on homes 20 years old or older. Getting a Wind Mitigation Inspection, which is determining the home’s wind resistance, can save a lot of money on insurance costs.

Another thing I think is very regional to the state is mold testing. With the humidity in Florida, this is a common concern. Especially in homes that have been vacant, and the air conditioner is not turned on or set at 78 degrees or higher.”

Source: redfin.com

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One of the least densely-populated states in the country, Montana attracts residents who really thrive in an outdoor environment. With plenty of outside recreation, activity is never at a minimum, even if you’re living in a more rural area of the state.

Views are spectacular here and varied. Without leaving Montana, you can see mountains, valleys, plains, hills, lakes, rivers and so much more. This landscape remains in pristine condition thanks to fewer cities, as well.

All that Montana offers definitely caters to those looking for an activity-based, laid-back lifestyle that isn’t without modern amenities and professional opportunities.

Will Montana and your budget come together without issue? Let’s find out by looking at the key costs of living in Montana.

Montana housing prices

Montana is a state of extremes. Some cities are retaining their small-town charm, growing on the slower side and keeping average housing costs more affordable. Other cities are doing the complete opposite, attracting so many people housing prices are skyrocketing. Both are some of the best places to live in Montana, these two cities perfectly represent these opposing price points of the cost of living in Montana.

Great Falls

Sitting on both banks of the Missouri River, Great Falls holds plenty of American history within it. Lewis and Clark passed through Great Falls during their famous expedition, and you’ll find a museum dedicated to cowboy art here.

All of this history comes at an affordable price when looking at housing. Prices are 22.3 percent below the national average. This keeps the average home price in Great Falls down to $322,450, and that means rents are pretty reasonable.

The average monthly rent for a one-bedroom apartment will cost $1,745. This is only an increase of 23 percent over last year. Two-bedroom apartments are seeing much more growth when it comes to price, rising by 51 percent over last year to an average of $1,895 per month.

Bozeman

Unlike Great Falls, Bozeman is experiencing a lot of growth right now. This is due to the state’s classification as a technological and cultural center. This fast-moving boost to the city has driven up housing to 54.8 percent above the national average.

Housing all around in Bozeman is more expensive and prices have jumped up a lot over last year. Home prices aren’t left out of this growth, and the average home in Bozeman costs $620,000.

Food prices

Montana as a state is known for its variety of meat and fruit. You can sample bison burgers (well, anything with bison meat, really,) elk, flathead cherries and huckleberries, just to name a few. With a potentially unique shopping list, Montana residents spend between $267 and $300 per month on groceries. Similar to housing prices, this puts one city over the national average and one under.

  • Great Falls is 8.4 percent below the national average
  • Bozeman is 7.1 percent above the national average

This means certain grocery items will vary greatly between the two cities. For example, steak in Bozeman is almost a dollar more than in Great Falls. Coffee is over $1.50 more in Bozeman, as well. Other food items, though, are the same price. Lettuce is $1.78 no matter where you live.

Food prices also impact the average cost of a night out to dinner. A three-course meal for two is $77.50 in Bozeman. That’s 27 percent more than the same meal will cost in Great Falls.

Utility prices

The cost of living in Montana for utilities is the one area in Montana where most cities fall below the national average in cost.

  • Great Falls is 15.6 percent below the national average
  • Bozeman is 13.7 percent below the national average

This is in spite of the cold and the potential for those big heating bills, which are highly likely considering the amount of snow in Montana every year. Great Falls gets an average of 58 inches of snow per year, and Bozeman gets an average of 65 inches.

Transportation prices

Throughout Montana, most cities have pretty average accessibility when it comes to walking and biking. Many supplement with public transportation, but car ownership is important.

What’s interesting here is which city is above and which is below the national average regarding transportation prices.

  • Bozeman is 0.4 percent below the national average
  • Great Falls is 6.4 percent above the national average

Bozeman is likely less expensive than Great Falls in this case because its public transportation system is actually free.

GFT in Great Falls

For public transportation in Great Falls, it’s all about the GFT, or Great Falls Transit. It consists of seven bus routes that go in every direction throughout the city, but what’s unique is the system’s hours of operation.

While most cities have late-night transportation, the GFT service ends Monday-Friday at 6:30 p.m. and at 5:30 p.m. on Saturdays. The buses don’t run at all on Sundays.

Another unique feature of the GFT is that buses stop at any street corner along its route as long as it’s safe and they’re not blocking an intersection. When you need the bus to stop to pick you up, you simply wave as the driver approaches to notify them you wish to board.

An adult, one-way fare on the GFT is $1.00, but you can get a punch pass for $10, which gives you 11 rides. You can also buy a monthly pass for $30.

Streamline in Bozeman

Also consisting of buses, the Streamline system of public transportation in Bozeman is a zero-fare transit system. Every line is color-coded for easy navigation with both weekday and weekend routes. You have your choice between the blue, purple, brown, pink or gold lines.

Scheduling here is also unique, with buses taking a break on the weekends. On Saturday and Sunday specifically, daytime service ends at 6:15 p.m., picking back up again at 8 p.m. and running until 2:30 a.m. This late-night bus also runs on Thursday and Friday, but overlaps with the daytime schedule.

Healthcare prices

When it comes to healthcare, Montana cities primarily hit right at the national average for costs.

  • Bozeman is 0.5 percent below the national average
  • Great Falls is 0.1 percent above the national average

You’d think this would create some consistency across the average cost of a doctor’s visit, but unfortunately, it does not. In Bozeman, the average doctor’s visit is $113.50, but you’ll pay over $26 more in Great Falls. The average for a doctor’s visit there is $139.50.

Goods and services

Goods and services are all those non-essential items you like to have in your monthly budget. They’re not necessary to survive, but sure make living more comfortable. Like so many components that go into the total cost of living in Montana, prices here hit above and below the national average.

  • Great Falls is 12.9 percent below the national average
  • Bozeman is 17.7 percent above the national average

Numbers here are potentially influenced by the high levels of growth in Bozeman. The rapid influx of people could create most businesses and increase the competition for goods and services, driving prices up.

The best way to see how these average differences really impact your monthly budget is to look at a few goods and services that could make it onto your list.

  • To get a hamburger out with friends in Great Falls, you’ll pay an average price of $5.35, but in Bozeman, that same burger is 31 percent more, costing $7.75
  • To get a haircut in Great Falls, the average cost is $14, but in Bozeman, that cut is 58 percent more at $33.33
  • To go see a movie in Great Falls, the average ticket cost is $10.99, but going to that same movie in Bozeman ups the price by 19 percent to $13.50

You can even see differences like this when looking at goods and services that have a significant expense, like childcare. The cost of a full-day, private preschool in Great Falls is $675 per month, but in Bozeman, the cost rises to $725 per month, a 7 percent differential.

Just about any service or item for purchase will be higher in a more developed city like Bozeman when compared to a slower-growing city like Great Falls.

Taxes in Montana

Montana taxes are a bit different than many states. It doesn’t have a state sales tax and also doesn’t have any local sales taxes. Instead, the focus is on a graduated individual income tax. Rates for this tax range from a single percent up to 6.75 percent.

What this means is that when you spend $1,000 to begin furnishing your newly-rented apartment, none of that total gets taken away by taxes.

How much do I need to earn to live in Montana?

Living in Montana most likely means paying less rent than you would in the more urban areas of the country. Since rent makes up the largest chunk of your cost of living, making sure you can afford it first really is key.

The majority of experts say you need to put 30 percent of your annual income toward rent. The average rent in Montana for a one-bedroom apartment is $1,954. This means you need an annual salary of $78,160 to live comfortably in a single bedroom.

This can make apartment hunting in certain areas harder given that the annual mean salary in Montana is $49,340. You’ll most likely have more options living away from larger urban areas, so opt for smaller cities or suburban communities when you want more housing options.

To get the numbers exact, though, it’s best to work up your own budget when it comes to the cost of living expenses. You can get started figuring out rent as part of your cost of living in Montana by using our rent calculator.

Living in Montana

Montana is easily one of the most picturesque states in the country. Not only that, its less-dense population means there’s more open space to simply enjoy. If an outdoorsy lifestyle is what you crave, in a state that won’t cost you an arm and a leg, Montana is the perfect place for you. The cost of living in Montana makes it very doable.

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of July 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

Apache is functioning normally

Unemployment rates are at their lowest level since 2000, while the economy is by all accounts running strong. But although these conditions might normally seem ideal for the real estate market, sales remain stagnant, with existing-home sales actually down by 1 percent year over year.

One of the main problems is low inventory, which means less competition for sellers and much faster sales than is normal. The average U.S. home will likely find a buyer under contract within just 26 days, according to a recent Realtor.com survey. That’s much faster than historical averages, which are usually around the 50 to 60 day mark.

“We’re in a bizarre world of a heated housing market where home sales are not rising,” National Association of Realtor’s Chief Economist Lawrence Yun wrote in his latest column at Forbes.com.

Yun said the lack of inventory is proving to be a challenge for real estate markets across the U.S., and said there was a desperate need for new homes.

“Whether it is the construction of affordable homes to meet first-time buyer needs, large-size homes to permit some existing homeowners to trade up, or developing an age-restricted retirement community, empty new homes will satisfy the rising housing demand,” Yun said.

He warned that just trying to get existing homeowners to sell simply won’t cut it, as many are not prepared to play what he called a “game of musical chairs” where they could find themselves without a place to sit once a sale has been made.

Yun said that many homeowners who might otherwise want to sell are refraining from doing so because they believe they’ll struggle to find a suitable new home once they’ve sold. He noted that the median length of time people stay in their home has grown to 10 years – previously, it averaged between six and eight years.

As such, Yun argues that new homebuilding is the only way to put the housing market back on track. He adds that it won’t just benefit the real estate industry, but also create new jobs, boost local economies and increase tax revenue. New construction will also help to make home prices moderate and boost the homeownership rate, Yun said.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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Source: realtybiznews.com

Apache is functioning normally

The latest housing crisis has been all about inflated home prices and underwater mortgages.

But not every borrower entering foreclosure is in an upside-down position. A new report from Fitch Ratings noted that a growing number of borrowers with positive equity are falling into foreclosure.

In fact, they claim such instances have “roughly doubled” over the past two years, meaning home equity is important, but it’s not everything.

Near Negative Equity Not Good Enough

You might be thinking that these people can just sell and cut their losses, but it’s not that simple when you consider all the costs involved with unloading real estate.

First off, you’ve got real estate commissions, which can be 6% of the sales price. Then there is the backlog of missed payments and penalties.

Fitch added that loans entering foreclosure today are 24 payments behind on average, which is more than double the pre-crisis, long-term average.

Assuming the sales price is enough to cover all the outstanding expenses, it still might not make sense for a homeowner with nowhere else to go.

After all, if they’re living “rent free” in a home they like/love, why go through the trouble of selling just to break even, only to end up without a house and burdened with moving expenses?

This is why you’ve got to take the negative equity numbers with a grain of salt. Yes, nearly two million homeowners have gotten their heads above water since 2012 thanks to rising home prices, but many still can’t sell, and certainly can’t buy another home if you consider the down payment required. Or the credit score needed.

You Shouldn’t Have Tapped Your Equity

While the current foreclosure situation is certainly a sad state of affairs, many of those facing foreclosure tapped their home equity along the way, often multiple times.

Per the report, 50% of loans entering foreclosure were cash-out refinances at origination, a number that has increased steadily since 2008.

So half of these borrowers pulled money out of their homes (and spent it somewhere), instead of paying down their original mortgage, and many probably did so at the height of the market.

These foreclosures may also involve second mortgages such as HELOCs taken out after the original mortgage. Again, you have to wonder where all the cash went.

For those still with some level of home equity, tapping it is basically impossible because of the restrictive LTV limits in place today. You can’t do a 100% cash out refi anymore…thank goodness.

Additionally, many of these loans were underwritten with subprime guidelines, meaning these borrowers don’t qualify for refinances, and can’t even keep up with reduced mortgage payments via a loan modification.

In fact, about half of all the loans that recently entered foreclosure had at least one unsuccessful loan modification.

Surprisingly, loans entering foreclosure recently were eight years old on average, compared to the pre-crisis average of 2-3 years.

It is somewhat amazing that these borrowers have held on so long just to lose their homes, especially at a time when home prices are at or near peak levels again in many parts of the country.

But lenders have been slow to process foreclosures, which may explain the deeper vintage.

Source: thetruthaboutmortgage.com