The Real Estate market in Bozeman continues to strengthen, with more clear indicators that prices are actually beginning to rise.

The numbers continue to look promising. The median home value for all single family homes in the Bozeman area, including both homes on lots under and over 1 acre, is now $270,000. For the same time period of last year, the median home value was $252,000, a 7% increase. If we restrict the data to homes on less than 1 acre lots, the median home value for Jan 1 through June 1 of 2012 is $260,000, compared to $238,750 for the same time period of 2011.

Last year, as with most years in Bozeman, the market charged full speed through the spring and summer months, and then cooled somewhat as we reached fall and winter. I expect the same to occur this year.

Bank owned properties and short sales in the Bozeman single family home segment are decreasing in both number and as a percentage of overall sales. During the first 5 months of this year, REO (bank owned properties) made up 10.6% of sales, while short sales held 6% of the market. During the same time period of 2011, REO sales accounted for 17% of the market and short sales accounted for 11%.

Interest rates continue to remain at attractive levels, with many buyers still able to finance their homes in the mid to high 3% range. Many buyers are starting to realize that we may be at the end of the depression for the market. That, combined with the low interest rates, has lead to more multiple offer situations. This has in turn helped the average list to sales price ratio to tick up somewhat, from 94% in the first 5 months of 2011 to 96% in 2012.

As usual, I have included data for the number of homes sold during the first five months of 2012. In addition to the 235 homes sold during this time period, another 134 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 ©