Bozeman Real Estate Report: May
by Tim Ford
As the spring thaw slowly takes place, bears are coming out of hibernation and so are many buyers and sellers of real estate. Buyers have actually been out and about all winter, but inventory levels have been low, so there hasn’t been much to buy. This month, we’ll take a look at the condo & townhouse market.
Pricing for condos & townhomes continues to climb and is now more than 63% above previous peak pricing. For the first quarter of 2019, 86 condos and townhomes sold at a median sold price of $333,975. This is compared to 98 units sold during the first quarter last year at a median sold price of $290,513, a nearly 15% increase in pricing. Looking back further, 87 units sold in the first quarter of 2017 at a median sold price of $275,000. The first quarter of 2016 saw 94 units sold at a median sold price of $224,450. In addition to the closed sales, another 78 units are currently under contract or pending as of the date of writing.
First quarter sales are always interesting to look at, but viewing a 12-month period gives a larger sample. Comparing all of 2018 sales to previous years, we see that 520 units sold at a median sold price of $298,350 last year. This is compared to 543 units sold in 2017 at a median sold price of $260,000. 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. Prior to the recession, the previous peak year was 2006, when 442 units sold at a median sold price of $202,450.
The lowest year of the recession for condo & townhouse sales volume was 2010 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 many have predicted that interest rates were going to rise considerably, they continue to remain low. As of writing, they’re currently hovering in the low 4% range 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 2019. In addition to the 166 single family homes sold during this time period, another 155 homes are currently pending, or under contract, as of the date of writing this article.
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.