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Single Family
By the numbers, Q2 2022 continues to look very strong in median sales price appreciation and lower days on market. However, there has been a significant jump in available inventory since January 2022. This jump is likely partially fueled by sellers not wanting to miss out on the market and buyer hesitation fueled by increasing mortgage rates and the inflation news cycle. There are still properties selling but there are fewer than in previous years, there are still properties that are selling quickly – some still in a day for desirable properties, the pricing market is still competitive (more on this in a moment) but there are a lot of properties starting to tick up on days on market and experience price reductions. This change in pricing will likely be more evident in the stats for Q3 2022 as pending contracts close.
We’re seeing median sales price increases of 8-37% depending on area for 2022 over 2021 Q2 – much of this appreciation was ticking up end of 2021 through early 2022. It is this appreciation that is being picked away at by the market swaying into more of a neutral stance. Looking at inventory counts, inventory hasn’t shifted much between late June 2022 and mid-July 2022, but inventory counts are up an astounding 45-510% since January 2022! Some of the inventory counts haven’t been at the numbers they are now sitting at since 2020 and 2019. It’s looking like a more balanced market again. And overall this is a positive thing.
List to sales price ratios show that buyers are not discounting much if anything at all on closed properties.
It’s a good time to be a buyer (I haven’t written that for a while)– selection and opportunities are increasing – even with higher interest rates there is a potential for seller paid closing costs for the first time in multiple years that can be used to ‘buy down’ your rate. And sellers are still in a great position – it’s important to keep on top of what is happening on the micro level in different neighborhoods and areas and to price to market – not padding that number.
Condo/Townhomes
Condos and townhomes are still seeing huge median sales price appreciation over Q2 2021. 18-112% – Amazing. However, these numbers are also being picked at as less properties are selling and inventory rises.
List to sales price ratios show that buyers are not discounting much if anything at all on closed properties.
Inventory bumps of 50-900% are being felt throughout the area. Again, numbers of properties available for sale are starting to resemble more seasonal norms in our area.
Land
There is still a scarcity of quality land options but the land inventory is also increasing substantially over the start of the year. Between 20-240% depending on area.
Median sales prices are up in all areas but there is more discounting happening across the board on land properties. Coming back down to more normal levels. Discounting of 5-7% on average.
Average days on market are still lower than in previous years.
High End and Luxury Single Family
High end ($1M-$1.5M) single family homes have increased in City of Bozeman but decreased in greater Bozeman and no sales in Big Sky. Inventory counts are also increasing. List to sales price ratios show a very strong seller’s market. It will be interesting to see if this segment is affected by the recent mortgage interest rate hikes – this segment is naturally less impacted by inflationary pressures.
Luxury single family homes ($1.5M+) have had an increase in sales year over year in Bozeman and greater Bozeman but a slight drop in Big Sky. Days on market have reduced in all areas. Inventory counts are up 80% in Big Sky since January and 200% in Bozeman and Greater Bozeman since January. So more properties are selling but there is also significantly more inventory.
High End and Luxury Condos and Townhomes
High end ($1M-$1.5M) condo and townhome sales are only tracked by KGRE in Bozeman and Big Sky. There was an increase in sold inventory in Bozeman year over year and a decrease in Big Sky. Average days on market have decreased dramatically in both areas. However, inventory is creeping up in this segment of the market.
Luxury ($1.5M+) condo and townhome sales have stayed constant or increased over the past year in Bozeman and Big Sky. Days on market have also increased. Inventory counts have increased since January 22 40% in Bozeman and 170% in Big Sky.