As we head into fall and the peak real estate season starts to wind down, many people are wondering what will happen with Bozeman’s real estate market through the end of the year. Will prices continue to steadily rise as they did through the first half of the year? Will the competition die down? Keep reading to find out what’s happening in Bozeman’s real estate market.
Buyers Are Looking For a Deal
With the average single-family home price over $530,000 in Bozeman, many buyers have found themselves scrounging the market for a good deal. A number of Bozeman buyers are no longer concerned with high-end finishes, pristine lots or the ideal location, they just want to be able to own a piece of the Bozeman real estate market. Sales of mid-range homes, townhomes and condos have significantly outpaced sales of higher-end homes in Bozeman. As of July 2018, the number of homes sold in Bozeman between $200K-$399K was more than double the number of homes sold in the $400K-$599K price range.
The Growing Pains Are Real
Since 2012, the average price of a home in Bozeman has increased more than 70%, while the population just within city limits has increased by more than 6,000. With a projected growth rate of 3.6%, Bozeman is the fastest growing city of its size in the nation. This growth brings growing pains that everyone is noticing, whether its traffic congestion, crowded trailheads or yes, higher home prices. It’s difficult to say whether Bozeman will reach it’s predicted growth numbers, but at this point, there are no signs of slowing down.
It's Moving Quickly, But…
Six years ago, homes in Bozeman spent an average of 60 days on the market. But as of July, 2018, that number has decreased 68% to an average of just 19 days on the market. Throughout the summer we saw many listings with multiple offers and above asking price closings. But will the fast pace of Bozeman’s real estate market continue? As we head into fall, we can expect a seasonal slow down as families with children settle into schools and attention shifts towards the holidays. We can also expect some downward pressure on the housing market near the end of September when there is expected to be a quarter point increase on short-term interest rates which will impact mortgage rates. If you are able to move any time of year, fall and winter are a great time to purchase a home as you will face less competition from fellow home buyers.
Lots of Development
If you take a drive through the neighborhoods on Bozeman’s northwest side, you’ll see streets lined with construction trailers, framed homes and excavated lots. This is a familiar scene throughout town, in the neighborhoods lining Huffine Lane, surrounding Four Corners, along South 19th Avenue and in the blocks surrounding downtown. There numerous large commercial developments underway throughout town, a new high school under construction and many new subdivisions in the works.
The Surrounding Areas Are Booming Too
As buyers are priced out of Bozeman, their attention has turned to the surrounding areas where prices are significantly lower. While the number of new listings in Bozeman decreased 2.5% in the last year, the number of homes for sale in Belgrade increased 11% and in Livingston the number of homes for sale increased 6%. As of July 2018, the average price of a single-family home in Belgrade was just under $340,000 and in Livingston it was even less at an average of $332,538. But, the increase in interest in these areas is certainly having an impact. Average single-family home prices in Belgrade have increased 9% in the last year, Livingston prices saw an 8% increase and most surprisingly, nearby Manhattan saw an 18.7% increase in the average sale price of a single-family home.
There is a Limit
While it may be daunting to look at recent Bozeman real estate numbers, the market is seeing some pushback from buyers. We’ve seen a significant increase in the number of price reductions on properties over the last few weeks. In the last week of August 2018 there were 102 price reductions on residential properties in the Big Sky Country Multiple List Service, implying that buyers are only willing to pay so much for a piece of Bozeman real estate.
Want more? Click here to visit our Bozeman real estate market report page.
*All data from Big Sky Country MLS, a subsidiary of the Gallatin Association of REALTORS®. InfoSparks