Bozeman Real Estate - Market Report
by Tim Ford
The winter of 2018 has been one of the longest and snowiest that many in town can remember. As we hopefully make our way into spring, I thought it prudent to take a look at how the condo and townhome market is faring.
Pricing for condos & townhomes has now climbed well above previous peak levels. For the first quarter of 2018, 98 condos & townhomes have sold at a median sold price of $290,513. This is compared to 87 units sold during the first quarter of last year at a median sold price of $275,000, a 5.6% increase in price. Looking back to the first quarter of 2016, 94 units had sold at a median sold price of $224,450. In addition to the closed sales, another 119 units are currently under contract or pending, this compares to 115 pending sales at this same point last year.
First quarter sales are always interesting to look at but viewing a 12-month period gives a larger sample. Comparing all of 2017 sales to previous years, we see that 543 units sold at a median sold price of $260,000 last year. In 2016, 509 units sold at a median sold price of $235,000. This is compared to 495 units sold in 2015 at a median sold price of $209,000. The previous peak year was 2006, when 442 units sold a median sold price of $205,450.
An interesting note on the 543 units sold last year; This is more than an 150% increase in the number of units sold compared to 2010, the lowest year of the recession for sales volume when 212 units sold at a median sold price of $160,000. 2011 was the worst year for pricing, when 272 units sold at a median sold price of $150,000.
Although interest rates have ticked up minimally, they continue to remain low. As of writing, they’re currently hovering just above 4.5% for a conventional 30 year fixed mortgage. Combine these low interest rates with the rising local rents around the valley and it makes the case for homeownership even stronger. Buyers should not underestimate the effect of rising interest rates on the affordability of a home.
As usual, I have included data for the number of single family homes sold during the first 3 months of 2018. In addition to the 183 single family homes sold during this time period, another 202 homes are currently pending, or under contract, as of the date of writing this article. That is almost identical to the 201 homes that were pending at this same point 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.