Why Bozeman’s Home Prices Didn’t Drop in 2024

The median price of a home in Bozeman (including single-family homes, condos, and townhomes) has remained largely unchanged for the last 3 years. The median sales price of a home in Bozeman was $750,750 in 2024, just .4% higher than in 2023 and just 2% higher than in 2022.

We see a slightly different story when we look at the sales prices of the types of homes individually. The median price of single-family homes in Bozeman has seen an increase of 2.8% compared to last year. But the median sold price of townhomes decreased 7.6% and the median price of condos decreased just slightly by 1%.

What is Keeping Home Prices High?

There is a theory the sale of homes at higher price points may have been what kept the median sales price stable this year. In 2024 the number of single-family homes sold under $1 million decreased 13.2% in 2024, while the number of homes sold over $1 million increased 12.2%.

Bozeman Real Estate Group agent Matt Ryan explains “high interest rates have significantly impacted buyers in the bottom half of the market, forcing many to wait for rates to drop. Adding to this challenge, these buyers typically prefer move-in ready homes and are reluctant to take on renovation projects at current prices. Meanwhile, upper-market buyers are less affected, as they can often manage higher rates through larger down payments, home equity, or all-cash purchases."

Less Buyer Activity, More Inventory

Taking a closer look at Bozeman’s residential real estate market, we see that the number of closed sales was down 3.6% compared to the previous year, and down 38% compared to 2021. Meanwhile, the number of homes that came on the market increased 12.7% in 2024 and was nearly in line with the number of homes listed for sale in Bozeman in 2021 (1,719 homes listed in 2024, 1,733 homes listed in 2021).

With significantly more supply on the market and stagnant demand, the scales tipped in favor of buyers throughout 2024. The monthly supply of inventory (a calculation that indicates how long it would take to sell the current inventory in a market based on the current sales rate) was 4.3 months on average, which by national standards is a balanced market but by Bozeman standards is higher than usual.

Homes also took longer to sell with the average days on the market increasing 23.8% compared to the previous year, time on the market that we have not seen in Bozeman’s real estate market since 2017.

Bozeman’s housing market experienced some big adjustments in 2024. Homes were listed at prices that would have had them sold within days in 2021, but the demand and buyers' purchasing ability just weren’t there. We saw many price reductions and a longer time on the market. But, with buyer activity strong at higher price points, we did not see a change in median sales price overall. 

For our take on what the Bozeman real estate market may look like in 2025, click here. For more information like this, sign up for our newsletter or check out our blog.