Our real estate market didn’t slow down much over the winter months and has quickly accelerated even as spring has not completely taken hold. One month into quarter 2 and multiple offers are becoming the norm in many segments of the market for well priced and positioned properties.
There are a handful of factors at work here:
- A lack of quality inventory across all segments and areas
- Rising list prices and the risk of pricing out buyers
- New construction – where prevalent has pushed median sales prices up as well as days on market.
- Less affordable options available in some areas has spurred growth in others.
It will be interesting to see how Quarter 2 statistics compare – on the ground it feels like the busiest quarter we’ve had, yet.
Key Metrics Southwestern Montana Real Estate Market Quarter 1 2017 Y/Y
Real Estate market sales were again heavily segmented in Quarter 1 of 2017. Some areas were down from 2016 highs while others continue to appreciate at record levels. Part of this is related to lack of inventory in key areas of our market – buyer demand is high and sellers have not yet internalized the new year-round nature of our market – many have held their properties purposefully off the market until spring.
Enjoy my video run down of statistics – can you find my pup, Dutchie?
Single Family Homes
The City of Bozeman real estate market saw Quarter 1 median sales prices about even with 2016 but significantly higher than 2015. Volume was down and number of listings sold was down. However, list to sales price ratios were above 99% pointing towards a strong sellers market. Greater Bozeman area saw huge leaps in median sales pricing as the building boom continued in a number of neighborhoods. More properties sold than in either of the two previous years. Some discounting was still taking place but even with new construction taking some time, days on market remained about even with 2015 levels. Belgrade had another big jump in median sales price as the new construction neighborhoods to the NE and south of town added inventory and attracted a higher price point buyer. This caused homes in the central Belgrade and River Rock areas to climb to new pricing highs. Number of sales in Belgrade jumped over 35% over Quarter 1 2015 and 2016. Manhattan looked similar to Belgrade with a jump in median sales prices, overall dollar volume and number of units sold – with help from the new construction neighborhoods to the north and west of town. Three Forks remained flat year over year with numbers similar to 2015. Big Sky’s single family home market shrunk, with only the bottom sector of the market showing considerable signs of strength. Luxury homes were not moving as quickly as in past years. Number of units sold was down by 50%. Livingston showed a big leap in median sales price as the market continued to rise. Less discounting happened between list and sales prices, indicating the area was experiencing a less strong buyers market.
Condos and Townhomes
With affordable options still an enigma in the greater Gallatin area real estate market, condo and townhome sales continued to be robust in Quarter 1. The City of Bozeman had another huge increase in median sales price year over year – up over 21%. The list to sales price ratio was over 100% showing that there is a strong sellers market with multiple offers becoming the norm. The greater Bozeman area also posted strong median sales price increases, up over 7% with a big jump in volume. City of Belgrade was about even with last year’s median sales price, which in turn was a huge leap over 2015 median sales price. Number of units sold is down as inventory has continued to be a challenge. Big Sky showed strong condo growth as new construction product has hit the market in both the meadow and mountain areas. Median sales price climbed over 22% with a strong jump in number of sales, up 15% year over year and almost 45% over 2015.
Land continues to post higher list and sales prices around our area. Offerings in the City of Bozeman have climbed slightly with a sharp decline in inventory sold. Spec builders are having a harder time factoring in the City of Bozeman’s impact fees and higher lot costs when breaking down their return on investment. More spec builders have moved outside of Bozeman City limits and into unincorporated Gallatin County and Belgrade. In these two areas, number of units sold is down but median sales prices have climbed almost 34% in the greater Bozeman area and 16% in Belgrade. We’ll continue to see new construction and interest in these areas as impact fees and red tape cause builders to reconsider building on spec within Bozeman City limits. Big Sky’s land market has been picking up with strong increase in number of listings sold over previous years, a reduction of days on market and a tightening list to sales price ratio. It is still a buyers market for land in Big Sky, but as the shift away from the dated feel of older log and timber frame houses and the attraction of custom new build homes rises, this may change.