What is Happening in Bozeman's Real Estate Market?

1. The number of homes for sale in Bozeman has dropped significantly

The number of homes available for sale in Bozeman has been on the decline since 2016, but between May and November of this year, we saw the number of homes for sale in Bozeman drop almost 30%. This is the most drastic decline in inventory that Bozeman’s real estate market has ever seen. This, combined with the increase in buyers is creating an incredibly tight real estate market.

Graphic: Homes for sale in Bozeman

2. The number of buyers in Bozeman has increased

Bozeman was on the map well before the pandemic, but something changed when COVID hit. All of a sudden people were fleeing cities and looking for places that had wide-open spaces and a high quality of life. Cue Bozeman. Out of state traffic on our website increased 87% this year, and requests for information from people out of state increased 263%. We saw a huge influx of people from California, Utah, Texas, Washington, and Colorado, just to name a few. This increase in buyers has impacted an already tight real estate market.

Graphic: Homes sold in Bozeman

3. Bozeman’s real estate market got really competitive

Before 2020, it was rare to see a bidding war on a home in Bozeman or to see a home sell for over the asking price. But this year both of those became the norm in our market. With the median price of a single-family home in Bozeman hovering in the $500,000 range for most of the year, many home buyers became desperate to find anything in their price point. Any home listed under $400,000 went FAST and often for over asking price. Between May and December of this year, 40% of the single-family homes sold in Bozeman that were priced under $450,000 sold over the asking price. If you are in this price range, don’t get discouraged. You can still buy a home in Bozeman, click here to find out how.

Graphic: Average days on market in Bozeman

4. Bozeman home prices went up

Based on the influx of buyers in Bozeman, low inventory, and increased competition, this comes as no surprise. Home prices in Bozeman have been increasing steadily for several years, but we did see a bit of a jump this year, particularly with single-family homes. Between May and November, the median sold price of a single-family home in Bozeman went from $509,950 to $575,000. The sold prices of condos and townhomes did not increase quite as drastically. When we look at the median sale price of condos, townhomes, and single-family homes in Bozeman, it went from $432,000 in May to $465,000 in December.