The National Association of REALTORS® recently released its annual profile of Home Buyers and Sellers. These are national, not local numbers, but Bozeman’s market shows many similarities. Here are a few of the highlights.

On a national level, first-time home buyers fell to just 21% of the market—the lowest share since tracking began in 1981. They continue to face limited inventory, declining affordability, and challenges saving for a down payment. Historically, first-time buyers made up about 40% of the market before the Great Recession. Many cited finding the right home as a very difficult step.

The median age of first-time buyers reached a record of 40, up from 30 in 2010, reflecting the need to save longer and search longer in a tight market. Repeat buyers also hit a record age of 62, compared to 36 in 1981, as many now move later in life—often in retirement—while younger homeowners may stay put due to the lock-in effect of low mortgage rates.

Homeowners came out as winners in both down payment and cash purchase categories, as many grew equity over the years and were able to use that equity to purchase their next home. All-cash purchases for primary residences remained at an all-time high at 26%. Looking back at the years 2003-2010, fewer than 10% of home purchases were all cash.

Down payments reached their highest levels since 1989 for first-time buyers, and since 2003 for repeat buyers. Repeat buyers often use their equity gains to bring lager downpayments to their next purchase. First-time buyers saw a change in the source of their downpayment funds. They are now more likely to use personal financial assets rather than family assistance, potentially due to their older median age. Inheritances also hit an all time high among first-time buyers.

The median length of home ownership before re-selling is also at an all time high of 11 years. The lock-in effect of those low mortgage rates is often cited as a contributor. Home buyers are also planning to stay put for longer. Median expected stay in a purchased home is now 15 years. From 2000 to 2008, homeowners typically stayed in their home for just six years.

Jessica Lautz, NAR deputy chief economist and VP of research was quoted as saying, “Unfolding in the housing market is a tale of two cities. We’re seeing buyers with significant housing equity making larger down payments and all-cash offers, while first-time buyers continue to struggle to enter the market.”

Although the numbers are harder to track locally, anecdotally that often holds true in Bozeman.  Many buyers are selling homes, either locally or in another market, and bringing large downpayments or all cash into their next home purchase.

Looking at some Bozeman data, I segmented residential sales into $500,000 price bands to better understand market dynamics. For consistency, only sales from the first 10.5 months of each year are included to allow an accurate comparison for 2025 data. These include all types of residential properties in the greater Bozeman area:

Overall sales numbers are up from last year, while the market segments have remained relatively consistent. Restricting the data to just single-family home sales shows a similar story; 594 single family homes sold during the first 10.5 months of last year, versus 613 this year. There are also currently 80 single family home sales pending. This is similar to the last two years, with 78 pending this time last year and 82 pending the year before.