Bozeman Real Estate Market Report
by Tim Ford
The first three quarters of 2017 have cruised by quickly for most. With winter approaching quickly, its time to see how the Real Estate market is fairing. While the number of homes sold is down slightly from last year, prices continue to rise as supplies remain low.
Compared to the first three quarters of last year, overall sales numbers seemed to have dipped slightly, with 751 single family homes selling this year compared to 834 during the same time period last year. However, available inventory has actually taken a larger dip, meaning there were fewer homes available for sale this year than there were last year.
The months of supply of homes has been on a steady decline. This is the number of months it would take to sell the current homes on the market. Some often consider a “healthy” or “normal” market to have somewhere between 4 and 5 months of supply. A higher number represents a buyer’s market, while a lower number represents a seller’s market. Bozeman’s current months of supply is 2.7 months. This time last year, it was 3.5 months.
Comparing new listing inventory, in the first three quarters of 2016, 1131 single family homes were listed in Bozeman. That same number for 2017 was 1036, an 8.4% decline.
Looking at pricing, the median sold price rose from $374,700 this time last year to $399,999 this year, a 6.8% increase. The average sold price rose from $447,723 this time last year to $492,772 this year, a 10% increase.
As prices continue to rise in Bozeman and the hot topic of affordable housing is debated, it would appear that the old forces of supply and demand are hard at work. If inventory levels remain as low as they have been and the demand continues, Bozeman will likely see a continued upward pressure on pricing.
As usual, I have included data for the number of single family homes sold during the first nine months of 2017. In addition to the 834 homes sold during this time period, another 174 homes are currently pending, or under contract, as of the date of writing this article. This is compared to 182 pending sales at the same time period last year.
The included data reflects sales of homes in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. The data includes home sales reported through the local Big Sky Country MLS, and does not include private party sales, Condominiums, or Townhouses.