The real estate market in Bozeman remained strong during 2018. It appears people are going to keep moving here at a high rate and developers and construction are keeping up with this. It’s hard to speculate what 2019 will bring so we asked our agents to use their experience and expertise to give us an idea of what this new year might bring.
1. We don’t expect a crash in the real estate market. Although most agents do expect the rapid price increases of the last two year to slow down. What we have seen in the latter part of 2018 are moderate volume and price increases compared to 2017, but with longer average time on the market. We anticipate a similar trend in 2019. The popularity of Bozeman and the number of people moving here should still drive growth but at a more sustainable pace.
2. The average days a home sits on the market will most likely increase. As we approach the busy season of spring and summer, sellers tend to price high which can result in a home sitting on the market longer. Because of this, home prices may start to come down slightly.
3. Millennials will continue to make up a large segment of buyers, looking for their first home or looking to move up into bigger, more expensive homes. This is expected everywhere and Bozeman is no exception.
4. Building costs, such as labor and materials, will continue to increase which will be reflected in the cost of new construction. While pre-existing home prices might stabilize, we probably won’t see this happen with new construction
5. Bozeman will probably continue to see an increase in multi-family homes coming on the real estate market. Not just because multi-family homes are more affordable, people are looking to simplify and pare down. They don’t want to be burdened with a big yard to maintain and sidewalks to shovel which leads to the appeal of a condo or townhome. There are a lot of people who move to Bozeman in hopes of having some space and big views, but once they see the price tag that comes with that may also decide to go this route.
6. With all of the multi-family units going up in Bozeman, you would think rental prices would start to come down but that isn’t expected to happen in 2019. Most predict the rental prices will continue to rise even with all the new developments. (Have you driven by MSU lately?)
7. The niche home market in Bozeman such as the downtown area condos and unique properties will continue to stay hot and most likely see an increase in home prices.
8. For many years people have been wondering when things will plateau in Bozeman. It seems like 2019 will be a directional year where we see if the Bozeman real estate market will start to stabilize or continue to increase at the rate it has been.
9. There will be more people looking for multi-generational properties. A property where there are two homes on it or a home with two entrances. This is much like what we used to call the “mother-in-law” apartment but now rather than just for older parents, it’s for young adults and their children living with their adult parents in more of a communal setting.
10. People are not going to stop moving here. Bozeman will continue to be a hot spot whether we like it or not!