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Bozeman Real Estate Group
Belgrade, MT
Price Reductions Have Tripled in the Past 3 Months
On Jul 14, 2022
Over the past few months, we have been seeing signals of a slowdown in the real estate market, which is to be expected given the rising mortgage rates. In June we saw the median sale price of a home in Bozeman decrease for the first time in 2 years, and over the past several weeks we’ve been noticing a significant increase in the number of price reductions on properties.
An increase in price reductions this time of year is typical, so we wanted to take a look at how this year compares to last. Last month, 36% of the homes currently on the market saw a price reduction compared to 26% of homes at the same time last year. This week we saw price reductions anywhere between $5,000 - $400,000. Click here to see all the recent price reductions in Bozeman and the surrounding areas here.
Another interesting signal of a shift in the market is that the number of pending sales is 37% lower than it was at this time last year, despite a 64% increase in the number of homes for sale. It’s easy to see why many buyers are taking a pause, mortgage rates have increased significantly and the quick increase has been a tough pill to swallow for buyers. Click here to read 4 tips on how to navigate the rising interest rates.
But, the slowing market is giving home buyers more leverage as they face less competition and gain more negotiating power. In this week’s video market update (scroll down to watch) Jessy Gustafson talks about how the percentage of list price that homes are selling for has been decreasing over the last few weeks. This means that more and more buyers are getting homes for under the asking price. If you are looking to purchase a home, let us know how we can help.
If you are thinking of selling your home this year, don’t panic! We suggest listing your home with an office and an agent who understands how to effectively price your home and market your property. To learn more about how to find a real estate agent in Bozeman, click here.
The statistics in this article are courtesy of the Big Sky Country MLS.
