Real Estate Year End Report
by Tim Ford | Wednesday Feb. 1st, 2017
The Real Estate market in Bozeman continued its hot streak through 2016. The good news for those thinking that prices are rising too quickly is that increases weren’t as dramatic as those seen in 2015.
Last year, 2015, was the first year that over 1,000 single family homes sold in a 12-month period in the Bozeman area; 1022 actually. This year that number rose again to 1076. This is up from the 905 single family homes that sold in Bozeman in 2014 and is well above the previous peak year of 2005, when 816 homes sold.
Looking back at pricing: In 2012, the median sold price for all single family homes both inside and outside the city limits was $278,750. This rose 7.3% in 2013 to $300,000. In 2014, it rose 8.3% to $325,000. 2015 saw an 11% increase to $361,550. The gain in 2016 was more modest at 4.8%, rising to $379,000.
Restricting the data to just homes inside the city limits, the median sold price for single family homes rose from $255,000 in 2012 to $276,540 in 2013, or 8.4%. It then rose to $296,750 in 2014, a 7.3% increase. It took a big step in 2015 and rose 14% to $339,000. The gains this year were steady but not as drastic as last year, stepping up another 6% to $359,500 for single family home sales inside Bozeman city limits.
Condos and Townhomes, which took a bigger hit in the down turn than single family homes, enjoyed a greater increase. The median sold price rose from $150,000 in 2012 to $174,000 in 2013, an almost 16% increase. It rose again in 2014 by 13% to $197,000. 2015 saw a 6% increase to $209,000. This year, the median sold price for condos & townhomes rose $26,000, or 12.4% to $235,000.
With the increase in pricing, we continue to see a decrease in the number of distressed sales in and around Bozeman. The combination of short sales and bank owned or foreclosed homes made up nearly 20% of all sales in 2011. Today, however, they make up less than 1% of total sales.
Growth in Bozeman continues to drive our Real Estate market. It also continues to surpass other Montana cities as well as regional cities such as Bend, Oregon, Fort Collins, Colorado, and Flagstaff, Arizona, according to US Census Bureau estimates. Bozeman growth is a hot button topic that continues to incite debate among current residents. Whether one is for it or against it, my estimate is that it is only going to continue regardless of how we feel about it. I predict 2017 will see continued increases in both sales volume and pricing across the valley.
The included data reflects sales of homes in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. The data includes home sales reported through the local Big Sky Country MLS, and does not include private party sales.
The information provided by the Gallatin Association of REALTORS Corporation / Big Sky Country MLS is compiled from miscellaneous sources and neither the association, nor the listing broker, nor its agents or subagents are responsible for the accuracy of the information.