How is the Housing Market in Bozeman, MT?

Bozeman, a beautiful Montana town next to the Rocky Mountains, is catching the attention of buyers for its transformation as a tech hub and its longstanding reputation as an outdoor haven. But is now a good time for buyers to buy and for sellers to sell? Read on to know all you need about the Bozeman, Montana, real estate market.

For a snapshot of what’s happening in the housing market today, review these statistics reflective of the Bozeman real estate market. Then, read on for a thorough breakdown of what these numbers mean.

Like much of the rest of the country, Bozeman is experiencing a slowdown in its market. The median sales price for a single-family home and a condo are no longer the skyrocketed prices seen in 2021 and have decreased as 2022 has progressed. However, these prices still are higher than the median sales price of properties at the same time last year.

Additionally, the average days spent on the market are also experiencing a slow-down, as single-family homes spend ten more days on the market than they did a year ago. It is notable that the median days on the market are still quite low, which may be reflective of low inventory. Although inventory is increasing, the amount of stock needed to create favorable conditions for buyers is out of reach as of now. The five or six months of inventory needed for a buyer’s market is a way away from the current 1.3-month supply of properties in the area.

The number of new listings for single-family homes, condos, and townhomes has also decreased since last year. Although single-family home listings have seen a modest decline of 1% in the past year, townhomes and condos have declined by 5.7%. This, coupled with rising median sales prices and a low level of supply, may make it difficult for buyers searching for Bozeman homes for sale.

If you’re searching for property for sale in Bozeman, MT, the housing market provides its share of good and bad news. The good news is that the supply of homes is on the rise slightly. Buyers have more room to avoid bidding wars and make an offer on a home that isn’t way over the asking price, and they may not feel pressure to forgo contingencies. However, buyers shouldn’t wait for a further cool down of prices or increase of inventory, as Bozeman has historically been resistant to hardships like potential recessions.

Buyers interested in Bozeman may also struggle against the decreasing new listings and increasing median prices. In other words, although inventory may be increasing slightly, the number of new listings is still low, and prices reflect the scarcity. Bozeman tends to trend on the higher side of real estate, which means buyers will have to accommodate for it.

For sellers looking to list their property, now is still a good time to do so. Although an increase in inventory may make for more competition against your listing, the overall stock remains low, which means you can still get a good offer on your home. However, the rising inventory does give buyers some space to negotiate, so be prepared to do so. As the median days on the market remain very low, be prepared to negotiate on offers quickly.

One thing to pay attention to as a seller is the decreasing number of pending sales. Although homes may be selling for more than last year, there are fewer properties selling than there were last year. This can be caused by several things; the slim inventory, rising prices, and rising mortgage rates all make it more difficult for a buyer to become a homeowner.

Those not quite ready to buy or sell can expect some of the same trends lasting throughout the rest of the year. Home prices will continue to increase throughout 2022 and into 2023, reflecting trends in the greater U.S. With this increase in prices, some people will be pushed out of Bozeman into surrounding areas and make a commute into the town, while others will be drawn to Bozeman’s suburban living for remote work or to find jobs in the growing technology sector.

Additionally, increasing mortgage rates are going to have an impact on buyers’ power for a home. This means that fewer buyers will be able to search for properties, and fewer sellers will have intense competition for their property as in 2021. Additional factors pressing on buyers, like high inflation, also may make it difficult to search in areas like Bozeman. And with inventory still well below the stock needed for a healthy market, buyers and sellers alike in Bozeman can expect the trend to continue through the rest of the year.

The housing market in Bozeman is experiencing a slowdown, reflected in increased inventory and decreased sales. However, the shift from a hot seller’s market is a slow one, and although buyers may notice more options available to them, those options may still be on the pricier side.

Other factors like rising mortgage rates will be felt by sellers, who may receive fewer offers on their homes. Keep this housing market information in mind when stepping into the Bozeman real estate sphere, and seek out the guidance you can count on from real estate professionals who know the ins and outs of the local market. If you need extra help navigating these statistics as a buyer or a seller, contact talented local Realtor Kelly Broling Smoak to guide you through the process.