The Real Estate market in the first half of 2013 has been really hot. Both activity levels and prices are up. The median home value for homes on both less than and greater than 1 acre including areas outside of the Bozeman city limits is now $300,000. For the same time period of 2012 it was $270,000, indicating an increase in the median home value of 11%.

Land sales have also come roaring back to life. Lot sales in Bozeman have been staggering over the past 6 months. In Bozeman and the surrounding areas, 172 subdivision lots and vacant building lots have sold in the first half of 2013 at a median sold price of $66,750. This is compared to only 120 similar pieces of ground sold in the same time period of 2012 at a median sold price of $45,150, indicating a 48% increase in the median sold price.

Prices are also increasing in the condominium and townhouse arena. 118 condos and townhouses sold in 2012 at a median sold price of $142,250. 104 similar homes sold in 2013 at a median sold price of $164,350, indicating an increase of 15% in median home price. The reduced number of sales is not indicative of the increase in activity levels, but is more likely attributed to an overall lack of inventory. Both MSU parents and investors have returned strongly to this market. While statistics are not available for these buyer profiles, I can say from personal experience that many of the condo sales can be attributed to MSU parents and investors looking for rentals.

As usual, I have included data for the number of homes sold during the first 6 months of 2013. In addition to the 272 homes sold during this time period, another 202 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 is a Realtor ® with Vellinga Real Estate in Bozeman Montana. He can be contacted at 406-209-1214.