News from the Knoff Group

Trend or Fad? Where is the market in Bozeman and Big Sky heading?

©MarshallStudio Gallatin Association of Realtors held an informational session for their Realtor® members today about market statistics for 2012.  In addition to the yearly market recap, a sub-theme of the discussion was for everyone to share their views of how they personally are seeing the market react and try to identify where the market is heading in the next year.

Based on input from this meeting and hard numbers from 2012 – here are the trends that were identified:

Bozeman and surrounding ‘Bozeman’ area (North, East, West and South of Bozeman City Limits, But still with Bozeman Address):

  • Short Sale/Foreclosure stats:  Short sales in 2012 5.7% of market, Foreclosures were 10% of the market.
  • Pointing towards 2011-2012 as peak of distressed.  Still need more data.
Single Family Homes
  • Inventory numbers are down (down 22% in central Bozeman and 17% in surrounding area)
  • Number of units sold are up – Bozeman Sales on a whole are up 25%
  • Average Sale Prices are up (7% in central Bozeman, 9% in surrounding area)
  • Median Sale Prices are up (6% in central Bozeman, 14% in surrounding area)
  • Prices likely stabilized – market stabilized
  • Inventory numbers are down 57%
  • Last year sold 337 units – only 47 currently available on the market
  • Average Sale Prices are down 2%
  • Need for more condo options – market stabilizing.
  • Inventory numbers are down (64% central Bozeman, 28% in surrounding area)
  • Number of Units Sold is up (171% in central Bozeman, 118% in surrounding area)
  • Most of the distress is out of the land (foreclosures/short sales)

Belgrade Area (north and south of I-90)

  • Short Sale/Foreclosure Data:  Short Sales were 17% of market in 2012.  Foreclosures were 30% of market in 2012.  Peak for foreclosure percentage of market was 34% in 2010.
  • Still competition for owner sellers from distressed properties
Single Family Homes
  • Inventory numbers are down 40%
  • Number of units sold up 5%
  • Median price is level (no change)
  • Demand is growing
  • Inventory numbers down 73%
  • Average Sale Prices up 10%
  • Median Sale Price up 17%
  • Smaller Condo Market – Demand is growing
  • Inventory down 3%
  • Number of units sold down 20%
  • Not much land available in this area

Big Sky area  (includes West Yellowstone)

Single Family Homes
  • Inventory is up 7%
  • # of Sales are up 14%
  • Average Sale Price is down 7%
  • Median Sales Price is down 3%
  • Inventory is up 3%
  • Prices are up 10%
  • Half of all condo sales were under $200K in 2012
  • Inventory is down 16%
  • Number of units sold is up 81%
  • Land-banking likely happening (buy now, save for later development)