Big Sky is a highly desirable ski destination, surrounded by the majestic Rocky Mountains and the Gallatin River and located right next to Yellowstone National Park. Due to its great amenities and luxury resorts and neighborhoods, Big Sky real estate has always been some of the most expensive in Montana and now is no different. Inventory is low but on the rise in this housing market, which affects the prices of properties available in the area. Read on for a more detailed explanation of what to expect from the Big Sky housing market.
Looking at the statistics
A quick way to understand what’s happening in the local real estate market is to review the statistics in the area. After reviewing these numbers, read on to understand how these statistics affect you as a buyer or a seller in Big Sky.
- The median list price of homes in Big Sky is $2,995,000
- Median sales price is slowing for all residential property types but homes
- Homes for sale have increased to 268 in August, compared to 94 in August 2021
- Days on market has increased to 186 days in September, from 161 in August
- There are currently 143 residential properties for sale
- The number of new residential listings has decreased since June 2022 to 24
Overview of the Big Sky housing market
Currently, two things are happening in Big Sky’s real estate market. The sales price of properties in the area are not increasing as fast as they once had, and homes are selling slower than they once did. This is evident in the median days on market, which is currently 186 days. These factors indicate that the local market in Big Sky is cooling and that buyer demand is decreasing.
This slowdown is also evident in the number of homes for sale, which has increased from 94 properties in 2021 to 286 in 2022. However, demand for homes is still high in the area, as half of the properties sold in Big Sky in August were single-family homes. This, coupled with the fact that homes are the only property to not see a flattening in median sales price, indicates that buyers searching for homes in Big Sky are still very interested.
Big Sky will always be a desirable place to live, especially within luxury sectors, due to its location and amenities. Home appreciation in the past decade is 98.9% and is currently experiencing an increase of 16.9%. Although the market may be slowing down, residents in the area, sellers, and buyers will continue to benefit from increasing home values which make buying property in the area such a good investment.
Breakdown of Big Sky real estate for sale
Big Sky’s residential properties are primarily made up of single-family homes, condominiums, and townhouses. As stated before, single-family homes are the most popular and most expensive property type in the area, making up half of the sales in the past month and averaging $2.995 million. Single-family homes in Big Sky are luxury properties with large acreages, great views, and private living.
Condominiums make up the second largest portion of property types sold in Big Sky. They have a median sales price of $1.85 million, which has increased since last year but is flattening this year. Lastly, townhouses in Big Sky have a median sales price of $2.075 million and make up the smallest portion of residential property sales. Like condominiums, the median sales price has increased since last year but is currently flattening.
Advice for buyers
Buyers looking for property in Big Sky should be mindful of a few factors. Those searching for single-family homes should prepare for high median list prices, as they’re currently on the rise. Demand for these home types is also strong due to the luxury they provide. Although there may be some competition, now is still a good time to start your search, as the market is slowing down. Those looking for properties in the area will likely have more options available to them in their search.
Beyond factors of price and inventory, other economic factors like mortgage rates and inflation are important to be mindful of. Average interest rates in Montana are 6.66% for a 30-year fixed loan and 5.79% for a 15-year fixed mortgage. Additionally, the cost of living in Big Sky is 12% above the national average, with housing expenses 38% higher than the national average. Keep these figures in mind when buying and living in Big Sky.
Advice for sellers
Sellers interested in listing their property in Big Sky may have to wait longer for an offer compared to earlier this year. With more inventory on the market than before, buyers interested in the area can be careful with their selections, as well as more particular with their offers. Additionally, buying power may be negatively impacted by factors like higher mortgage rates and inflation.
However, sellers can still expect good offers for their properties, as median sales and list prices remain high for homes, condos, and townhomes. Work with an expert real estate agent when pricing your home so as not to scare off buyers looking in the area. Additionally, although inventory is increasing in the area, the number of new listings is still low. Even for property types less popular than homes, you’re likely to find an interested buyer.
Ready to buy or sell in Big Sky?
The housing market in Big Sky mimics national trends in its cooldown since the beginning of the year. Those interested in properties in the area can expect more options available to them, as well as slowly increasing prices. However, homes and condos in the area are still investments that are well worth it. Those looking to sell can continue benefiting from high list prices and the prime location. When you’re ready to start buying or selling in the area, contact agent Kelly Broling Smoak to guide you through the process.
