Rising mortgage rates have slowed buyer demand and for the first time in 2 years, we saw the median sales price of a home in Bozeman decrease. We have also seen an increase in the number of homes coming on the market as well as an increase in the number of price reductions. Could these be signs that the real estate market is finally slowing down? Let’s take a look at exactly what is happening in Bozeman’s real estate market.
Good news for all the buyers out there! We are finally seeing an increase in the supply of homes on the market in Bozeman and the surrounding areas. The number of homes listed for sale in Gallatin County is up 48% compared to this time last year. This is great news, especially when we consider the fact that in May 2021, the inventory of homes for sale was down 67% compared to the year before. At the time this article was written, there were 347 homes actively for sale in Gallatin County, 41 of those were under $500k. While these numbers are still about half of what they were in the pre-covid real estate market, they are a welcome improvement to what we have been seeing over the last 2 years.
What is interesting to note is that even though inventory has doubled compared to this time last year, the number of pending and closed sales has not. The number of closed and pending sales have actually decreased roughly 10% compared to this time last year. This is very interesting when you take into account how many more homes are on the market this year compared to last. Rising mortgage rates and other economic pressures are certainly having an impact on buyers being willing or able to purchase a home at this point.
Which takes us to an even more interesting point, price. Buyers will rejoice to hear that the price of a home in Bozeman actually decreased! And while it’s not by leaps and bounds, it is a welcome change. The median sale price of a home in Bozeman went from $765k in April to $735k in May (this number includes single-family, condo, and townhomes and is based on 3 months of activity). The median sale price of a single-family home dropped 3%, and the median sale price of a condo dropped 1.6%.
Over the past several weeks, we’ve seen a growing number of price reductions. We were surprised to learn that it’s not just homes in higher price ranges that are making price adjustments. Homes in lower price ranges are the ones seeing the highest number of price reductions right now. At the time this article was written, 38% of the active properties under $500k in Gallatin County had seen price reductions. In comparison, 36% of properties in the $500-800k price range had reduced their price, while 33% of homes between $800k-1 million and 19% of homes over a million had seen price reductions.
If you are thinking of buying a home in Bozeman, this is all great news! You can find more resources about buying a home on our Buyers page. If you are thinking of selling in the next year, we recommend getting the ball rolling. You can visit our Sellers page for more information.
All statistics in this article are courtesy of the Big Sky Country MLS.
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