2012 has come to a close. It’s time to take a look back at how sales faired in the Real Estate Market around Bozeman.

The good news is that the overall number of sales is on the rise and has been for the past three years. Sales began to slow in 2007, then continued to fall through 2009. They picked up somewhat in 2010, and continued to rise in 2011. In 2012, more homes sold than any year out of the previous 6. The only year that more homes sold in Bozeman is 2005.

Prices are also beginning to rise. The median home price for homes both inside and outside the city limits of Bozeman for 2011 was $252,000, which increased to $278,750 in 2012. This number indicates an increase of 10%. However, I feel this number is misleadingly high and demonstrates a fault in using median home prices to try to gauge how individual home values have changed. One contributing factor to the rise in the median home price is the number of more expensive homes that sold this year. 84 homes sold for over $500k in 2012, while only 67 homes priced over $500k sold in 2011. Restricting the data to only homes located within the city limits reveals a 6% increase in the median home price of $240,000 in 2011 to $255,000 in 2012.

The MSU parent buyer has also returned very strongly to our market. While there is not any data available, I can say from personal experience that a large number of parents of MSU students have returned to the idea of purchasing a house or condo for their son or daughter to live in while attending MSU. Many of the condo sales in 2012 were purchases involving the parent of an MSU student.

A drive around town through some of the newer neighborhoods will reveal the increased activity in new home construction as many new homes are popping up across town. Lot sales have seen a staggering increase, almost tripling from last year. 162 lot sales were reported on our local MLS in Bozeman in 2012, versus only 55 in 2011. This does not include private party sales that are not reported on MLS. I am very optimistic about the Real Estate market in 2013 and I believe prices and activity levels will continue to rise.

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 Southwest Montana MLS, and does not include private party sales.

Tim Ford is a Realtor ® with Vellinga Real Estate in Bozeman Montana. He can be contacted at 406-209-1214.