Bozeman Real Estate Market Predictions for 2024

After years of high prices, low supply, and a big increase in people moving to Bozeman, Bozeman's real estate market finally slowed down in 2023. Median sales prices in Bozeman hovered between $650,000 to the high $800,000's, much less than the drastic price increases in late 2020-2022. Rising interest rates and a lack of buyers also contributed to the slower real estate market. What does this mean for 2024? Let’s take a look.

1) More Buyer Opportunities

After years of a strong seller’s market in Bozeman, the forecast for buyers looks promising. Experts are anticipating a downward trend in interest rates which will provide relief to homebuyers looking to enter the market. As rates come down, more people will be looking to purchase a home which could create low inventory and another potential spike in the market. This means early 2024 could be a strategic window for buyer opportunities. Lenders are continuing to find creative financing opportunities for buyers which will be another perk for people looking to buy a home in early 2024. Until the mortgage rates drop, we will likely continue to see sellers offering closing cost discounts and rate buy-down options. If you are thinking of buying a home this year, let us know.  

2) Interest Rates Will Come Down

A common theme among real estate professionals and economists is that interest rates will finally start coming down in 2024. Most anticipate at least 3 interest rate decreases which will bring an uptick to the real estate market in Bozeman. Experts are forecasting that mortgage rates will make their way down to the 6% range or below which will improve buyer affordability. Many developers put projects on hold due to the high interest rates, so they are likely to jump back on these projects which will be important to add to the supply as demand heats up. We will likely see high interest rates through winter with economists forecasting these lower rates by Q3 which will mean 2024 has a brighter outlook overall for real estate across the country than the last 12-18 months.

3) Competition Will Increase as Buyers Re-enter the Market

Many buyers hit pause in 2023 as interest rates rose dramatically. New construction also slowed as developers became more cautious about new projects along with high material and labor costs. This has created a build-up of buyers and as we see interest rates come down and buyers re-emerge, competition could increase. In Bozeman, some predict that we will see another real estate spike, but most agents agree it will not be as wild as late 2020-2022. Homes on the market will likely begin to receive multiple offers again if the demand for home purchases increases at a rate that the inventory is not able to meet.

4) Home Prices in Bozeman Will Remain Steady

Bozeman continues to be a desirable place to live because of our quality of life. Bozeman's allure for outdoor enthusiasts will forever remain, and that will keep drawing new residents here. This means that real estate prices should remain stable and even continue to increase in 2024. No one anticipates big price drops in Bozeman and the surrounding areas. With the potential for issues with low supply and high demand in the market again, some agents predict home prices rising 10 – 15%, but nowhere near what we saw when interest rates were below 3%. Unfortunately, this means that in Bozeman, like many areas across the country, we’ll continue to see affordability issues for a large part of the population.

5) What About Sellers?

The real estate market is likely to follow the same seasonal trends when it comes to selling in Bozeman. Historically it is harder to get top dollar for a home in the winter when the real estate market is at its slowest point of the year, but things always pick up in the spring as buyers emerge. In the early months of 2024, sellers need to consider being flexible and willing to negotiate since there aren’t as many buyers in the market. The one positive to that is the lack of inventory can make the homes that are on the market more desirable. When interest rates begin to drop and buyers get more active, we will see inventory pick up and homes will be able to come on the market at more competitive prices than they are currently. If you are thinking about selling this year, let us know. 

With the anticipation of lower interest rates, a resurgence of buyers to the market, and the ongoing appeal of moving to Bozeman, 2024 could be a more typical real estate market for the area with low inventory of homes and appreciating prices.

Straight from our agents - 

"The forecast is promising. Rates are on the decline, experts anticipate a downward trend may be below 6% by the end of the year" – Matt Ryan

"More buyer opportunities" - Jason Basye

"With a number of buyers waiting to jump in once affordability improves, the competition will increase again." – Shea Bartsch

"MT will remain a go-to state, especially from CA, WA and MN. People will look to places like Idaho and MT for quality of life, less crime, great schools/universities." – Dave Everett

"Overall, 2024 could be a typical real estate market for the area with low inventories of homes and appreciating prices." Jim Applebee

"In my opinion the outlook for the 2024 Bozeman real estate market will be brighter than the last 12-18 months, assuming interest rates for mortgages continue to lower and the overall US economy can achieve the "soft landing" the Federal Reserve is striving for." – Bronson Neff