2021 has been quite a year for real estate in Bozeman. The year began with the median sales price of a home in Bozeman at $545,000 and is ending with a median sales price of nearly $650,000*. By mid-year, we did see the increase in home prices slow down slightly in Bozeman as well as in the surrounding communities.
Median Sales Price in Bozeman
Here are 5 things we are seeing in Bozeman's real estate market right now.
1) There Is a Slight Increase in Inventory
Lack of supply and increased demand have continued to be driving factors in Bozeman's fast-paced real estate market. Beginning in April 2020, the number of homes for sale in Bozeman went on a steady decline for the next 12 months. Just this summer we finally started to see the number of homes listed for sale in Bozeman increase again. And while the number of homes for sale now is nowhere what it was pre-pandemic, the increase in inventory over the last few months has brought some releif to a very tight market.
2) Seasonal Fluctuations Are Returning
While inventory generally follows a seasonal trend, increasing in the spring and summer and decreasing in the winter, that all changed in 2020. Throughout 2020 we did not see the usual fluctuations in the real estate market that we generally see through the year. When things slowed down slightly this fall, some wondered if the bubble was bursting. However, at a closer look, this is statistically what happens in real estate during late summer and early fall.
3) There Is Less Frenzy
Sellers who have listed their home in the past few months may have been surprised when their home did not get multiple offers and sell for over asking price. Sellers have these expectations because in 2020 this is what was happening! But this year, many buyers got burnt out from the frenzy of the real estate market and decided to take a break. That, combined with the return of seasonal fluctuations has shifted the real estate market. Don't get us wrong, there are still homes in Bozeman getting multiple offers and going for well over the asking price, but we are also seeing some homes sit on the market longer. Click here to find out how long it takes to sell a home in Bozeman right now.
4) COVID Is Playing Less of a Role
One of the big drivers in Bozeman's real estate market since 2020 has been COVID. The pandemic had a huge impact on how people wanted to live, and we saw thousands of people leaving large cities and heading to places like Bozeman. While we are still seeing this in our market, it is not happening at the same pace that it was in the past. We expect to see this continue to dwindle as we head into 2022.
5) Demand Is Still Strong
Because of the wild ride 2020 and 2021 have been, everyone’s perspectives and expectations of the real estate market are a little off! Sellers are expecting to get the high prices they have been hearing about and buyers are hoping that the competitive market is finally slowing down. What we do know is that the Bozeman real estate market is still strong and will most likely continue in an upward direction. People are going to keep moving to Bozeman regardless. However, it is nice to see the market calm down and normal seasonal trends resume.
You can keep up with current market trends by clicking here to view market reports for Bozeman and the surrounding areas. If you are wondering what your home is worth in Bozeman’s real estate market right now, click here.
*Information from Gallatin Association of Realtors InfoSparks