The market has been changing for home owners in the Bozeman area. For the past two years, homes for sale in the Bozeman area were going under contract quickly, many with multiple offers and selling for over-asking. But now, sellers are experiencing a different market. For the first time in two years, the median sales price in Bozeman decreased, price reductions have tripled in the past 3 months, and pending sales are down compared to this time last year. How are these changes impacting sellers in Bozeman?
YOUR HOME MAY TAKE LONGER TO SELL
Currently, there are around 295 active listings in the Bozeman area and over half of them have been on the market for 30 days or longer. This is a shift from the past year when the average number of days a home spent on the market was 23 days. Homes in Bozeman are still selling, they are just taking a bit more time. Most sellers should expect their homes to sit on the market longer with timeframes of 3-6 months becoming more common. If you are purchasing a replacement property it's important to plan accordingly when deciding the best time to list.
YOU MAY NOT GET THE PRICE YOU EXPECTED
In the past two years, Bozeman homes got pricey. People were moving here at a record pace, and with a lack of supply of homes on the market, prices rose quickly. We all heard stories of people selling their homes for thousands, if not tens of thousands, over asking. But now, real estate prices are stabilizing and higher mortgage rates have reduced the number of buyers looking for a home. If you are getting ready to sell your home in Bozeman, pricing it for current market conditions, not what it was a few months ago will be important. Find out what your home is worth here.
THERE WILL BE MORE COMPETITION
Low supply and high demand were the driving force behind the hot real estate market in Bozeman. When there are only a handful of homes on the market, you get a lot of buyer interest. The number of listings on the market has been slowly increasing over the past few months offering more options to home buyers. Last July, there were 180 properties for sale in Bozeman and this year that number is nearly double. High-level marketing and exposure for your property are even more important now!
BUYERS ARE HESITANT
With rising interest rates, some buyers have hit the pause button on their home search. There was also buyer burnout after the last couple of years where some buyers kept losing out on homes and decided to take a break. Now with prices stabilizing and mortgage rates fluctuating, we might start to see a few more buyers jump back in. Regardless, buyers are not making the same offers they were before with escalation clauses and putting in offers sight unseen. They know there are more homes on the market and if they miss out on one house, there are more available. As a seller, keep this in mind when you are pricing and considering offers on your home.
THE AGENT YOU WORK WITH MATTERS
The real estate market in Bozeman is changing quickly and working with a real estate agent that can adapt quickly is important. An experienced agent who has been through the ups and downs of the real estate market can help guide you in these uncertain times. It's also important to know how a real estate agent will market your home. A sign in the yard was pretty much the only marketing needed these past two years because everything was going under contract quickly. Now, you want to know how the agent and their team plan to market your home. Consider where a real estate company ranks on Google for important keywords like "Bozeman real estate". Find out if they offer professional photography and 3D tours and what their social media engagement looks like. In a cooling real estate market, these things will make a difference.
IT IS STILL A GOOD TIME TO SELL
Even with a recent influx of listings, the housing supply is still at an all-time low nationally which means appreciation will continue to go up. There is a whole new generation of buyers with Millennials continuing to enter the housing market and Gen Z right behind them. The number of this new generation of buyers exceeds the Baby Boomer population and will drive up demand. Once we begin to see inflation cool, experts believe mortgage rates will start to come down, but this doesn't mean the same will happen with home prices. Lower rates will create more competition. For sellers, this means that even though things have calmed down recently most signs indicate that the housing market will remain strong.
Statistics from Big Sky Country MLS
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