Greetings!  

With the coming of Labor Day weekend and back-to-school the pace of activity here in the Flathead Valley shifts from the frenetic buzz of young families to a bit more relaxed pace. As usual our visitors are now people coming to enjoy what many believe is the best kept secret in the west, September.

Tourism this summer has been one of the best on record, with hotels, restaurants and retail businesses all reporting good traffic and purchasing. Our Canadian friends to the north have been here in force, prompting many to recall the good old days in the 1980's - welcome back.

Real estate continues to show improvement, though high levels of inventory indicate that any real price appreciation will remain in the future. The good news once again is that total residential sold volume increased by 28% during the first half of 2012 as compared to 2011. Tempering this increase is the underlying statistic that shows the median sold price decreased by 7% while the average price increased a modest 2½%.   During the same period Land sales volume decreased by 47% over the previous year, with both median and average prices decreasing as well to levels last seen in 1990.

The silver lining in the local real estate market is the return of buyer demand. Though very much dependent on pricing, all of our agents are reporting very significant levels of interest in all product types, as buyers are getting the feeling that the bottom is behind us. The discrepancy between buyer and seller's expectations can be seen in the prices asked for listed properties. Both average price and median prices of listed properties are roughly double that of the average and median prices of sold properties.

In any event, statistics seem to indicate that in our market the bottom was in 2009, with modest increases in 2010-2011 and again anticipated in 2012. This will not translate into significant price increases until inventory levels fall somewhat, though the best properties are being sold at very attractive pricing.

Summer Ends Sweetly: July Pending Home Sales Rebound - rismedia.com Great news on the housing front: Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels, according to the National Assocation of REALTORS. Read full story.

Why Buffet is betting big on housing -online.wsj.com What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great investment opportunity. Joe Light has details on The News Hub Read full story.

'Red hot' Bay Area luxury home market sees biggest jump since 2006 - bizjournals.com Don't be surprised if you hear your real estate agent and mortgage lender suddenly belt out a rendition of "Happy Days are Here Again." Read full story.

Home prices signal recovery may be here - cnnmoney.com If NEW YORK (CNNMoney) -- A sharp boost in home prices during the spring could signal a recovery in the long-suffering U.S. housing market, according to an industry report issued Tuesday. Read full story.