Year End Market Report 2019
by Tim Ford
In 2019, 996 single-family homes sold in the areas both inside and outside of Bozeman’s city limits at a median sold price of $495,250. This is compared to 1,020 homes sold in 2018 at a median sold price of $456,375. This represents an 8.5% increase in median sold price from 2018 to 2019.
Restricting the data to homes sold just inside Bozeman city limits, 592 homes sold this year at a median sold price of $460,000, a 7.6% increase in pricing over the 609 homes sold last year at a median sold price of $427,500. Looking back to 2017, 565 homes sold at a median sold price of $381,500.
The price of buildable dirt in Bozeman seems to have leveled off somewhat, compared to its dramatic increases over the previous couple of years. In 2016, the median sold price for a lot in Bozeman was $76,000. That number rose to $84,900 in 2017, and then jumped to $124,900 in 2018. Those increases equated to a 47% increase from 2017 to 2018 and a 64% increase from 2016 to 2018. In 2019, the median sold price of Bozeman lots sold through our MLS was $128,450.
The number of homes on the market was relatively similar this year compared to last with 1,240 homes listed for sale in the greater Bozeman area, versus 1,227 single-family homes listed in 2018. This compares to 1,180 homes listed in 2017, and 1,298 in 2016. The homes listed to homes sold ratio has remained relatively similar with 80% sold this year, 83% last year, and 85% in 2017.
The month’s supply of homes has also remained relatively stable for the last 2 years, hovering between 2.9 and 3 months. This is the number of months it would take to sell the current homes on the market. Some often consider a “healthy” or “normal” market to have somewhere between 4 and 5 month’s supply. A higher number represents a buyer’s market while a lower number represents a seller’s market.
Looking at the condo and townhouse market, the number of sales has remained fairly constant over the past 3 years while prices have been on the rise. 508 condos and townhouses sold this year at a median sold price of $325,000, compared to 516 units last year at a median sold price of $296,250, a 9.7% increase in pricing. Looking back to previous years, 509 units sold in 2017 at a median sold price of $260,000. In 2016, 511 units sold in the areas in and around Bozeman at a median sold price of $235,000.
The big question on a lot of minds is what is going to happen to interest rates. Some have been predicting their rise over the past couple of years, but we really haven’t seen it. While rates continue to fluctuate, as of the date of writing, they’re still coming in under 4% for a 30-year fixed-rate conventional mortgage.
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.