The Gallatin Association of Realtors recently hosted an informational session on the ‘State of the Market’ – featuring statistics for 2013 and trend outlook for the 2014 real estate market.
The session focused on the greater Bozeman area, Belgrade, Manhattan – Amsterdam, and Three Forks.
Single Family Homes
Single family homes are at an inventory shortage at the end of 2013 in most segments of the market, with the exception of properties over $1 million. The market strengthened considerably during 2013 in the $500-$1 million segment of the market.
In the Bozeman area, Single Family Home median price was up 9%. Single Family Home median price for central Bozeman was $277K at the start of Q1. Single Family Home median price for greater Bozeman was $358K.
In the Belgrade area, Single Family Home median price was up 11% to $195K.
Manhattan – Amsterdam and Three Forks Single Family Home median price was up an impressive 21%. Some under pricing in the lower end of the market may be occurring
As of the start of Q1 2014, for the combined area there were 407 active single family units, 115 pending units and 1187 solds in the past year. This indicates a 3-4 month supply of single family homes. Median price was $348,209 and there were 80 new solds in December 2013.
Condos are experiencing very low inventory. It is currently difficult to build attached product since financing such projects is hard.
Median prices of condos in Big Sky up 24%. Central Bozeman media price of a condo is up 15% and Belgrade is up 30%.
Condos up 10-20% across the board in the Gallatin Valley. As of the start of Q1 2014 there were 422 sold in the past year, 83 available, 47 pending and 24 sold in the month of December.
Land prices are the exception to the growth rule. Pricing remains flat in many areas or even declining. There was a money play in Belgrade when most of the lots under $50K were bought up. Inventory is the key to land – the prices are too high for the margins to be great and land is not necessarily shovel ready quickly enough.
Currently it is difficult to find lots under $75K – this is a great opportunity for land holders but also challenges with growth.