April has been another busy month for Residential Real Estate in Bozeman. As I reported last month, inventory continues to be an issue. There are many ready and willing buyers that are having difficulty finding homes that fit their needs, and we continue to see more multiple offers and shorter days on the market.

While my report usually focuses on the sales of single family homes in the Bozeman area, I thought it worthy to note that construction and lot sales are also increasing greatly. Between January 1st and May 1st of this year, 75 subdivision lots were reported sold in the Bozeman area through our local SW Montana MLS. This does not include additional lots that may have been purchased singularly or in bulk by builders directly from the subdivision owners.
Compare those 75 sales to the same time period during the past 3 years; In 2009, a mere 9 lots were sold through the MLS system, in 2010 38 lots sold, and in 2011 35 lots sold. Sales of subdivision lots in 2012 have essentially doubled compared to the past two years. Perhaps even more noteworthy is that as of the date of writing this article, another 81 subdivision lots are pending or under contract in the Bozeman area.

Interest rates continue to remain at attractive levels, with many buyers still able to finance their homes in the mid to high 3% range. Its still too early to tell whether prices are beginning to rise, but that is what the latest activity levels may be indicating.

As usual, I have included data for the number of homes sold during the first four months of 2012. In addition to the 165 homes sold during this time period, another 133 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 Southwest Montana MLS, and does not include private party sales, Condominiums, or Townhouses.

Tim Ford – REALTOR ©