Currently, the median sales price of a single-family home in Bozeman is $649,950, up 31% from $495,000 at this time last year*. Home prices have been climbing every month of 2021. It’s hard to predict what this new year will bring to the real estate market in Bozeman, but we expect it will still be a great time to sell your home in Bozeman.
A seller’s market is when the demand exceeds supply and that has been the case in Bozeman even prior to Covid. We saw it escalate throughout 2020 and 2021. While we did see a seasonal slow down this past fall, there are still many homebuyers in Bozeman and more people moving here each day. The frenzy of multiple showings and offers has calmed, but when a home hits the market in Bozeman it still goes under contract quickly. This is almost always the case in the first-time homebuyer price ranges, however, we are seeing it across all price ranges. The competition in Bozeman remains intense right now for buyers making it an ideal time for sellers.
There was a slight increase in the number of homes for sale in Bozeman this summer, however, inventory remains low. For those looking to purchase a home in the Bozeman area, this is creating an incredibly tight and competitive market. When a new listing hits the market, it generates a lot of interest. This makes it a great time to be a seller! The low inventory means less competition, more buyers interested in their home, and often multiple offers.
There was an explosion of new people moving to Bozeman in 2020 and it has not slowed down. We have always been a growing community, making it on national Best Places to Live lists over and over. This means when you list your home you not only have local buyers competing for it, you have out-of-state, potentially cash buyers. Many people are moving from places where real estate is more expensive than here so they can outbid local buyers. With the number of people working remotely and our access to an international airport, out-of-state buyers are going to continue to set their sights on Bozeman.
Mortgage interest rates have been holding steady. For most of 2021, they stayed below 4% and stayed within half a percentage point which is a small range. As of early November, interest rates were at 3.10% for a 30-year, fixed-rate (according to Freddie Mac). This is another factor that contributes to the number of buyers and is a positive for home sellers. It means you have plenty of buyers looking at your home and if you are buying a replacement home you get the advantage of low-interest rates.
2021 was quite a year for real estate in Bozeman. Most experts agree this next year we will start to see things normalize. We should begin to see the competition calm down and home prices start to moderate. This does not mean the market will crash, and this is certainly unlikely in a market like Bozeman. We still see out-of-state interest every day and supply will most likely not catch up to the growing demand. This means 2022 will remain a good time to sell your home. You may not get 12 offers the day you list your home but it is not likely to be on the market for long. To learn more about what is happening in Bozeman's real estate market, click here.
*Big Sky Country MLS InfoSparks
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