The first quarter of 2013 is indicating this could be a strong year for Real Estate in Bozeman. 83 homes have sold from January 1st through March 1st, which beats the 81 homes sold last year and in 2005, two of the busiest years for Bozeman. Median and average home values are also continuing to trend upwards. The median home value during the first quarter of 2012 was $259,000, and is $279,900 for the first quarter of this year. The average sold price for the first quarters is $302,593 for 2012 and $350,085 for 2013.

Lot sales continue to excel. As I mentioned in my year end report, 117 lots sold in 2011. That number almost tripled in 2012 to 306. Comparing the first quarter of this year to last, the number has almost doubled from 28 lots sold in Q1 of 2012 to 53 in Q1 of 2013.

Lots are becoming increasingly difficult to find. This strong increase in lot sales indicates that it will be a busy building season in Bozeman. This increase in building is good for the economic health of the community by putting many in the trades to work and increasing spending at all the businesses that support the building community.

It will be interesting to watch and see how the supply and demand trend plays out this year. Currently, inventory levels are very low and many buyers have been having difficulty finding homes to meet their needs. The homes that are priced well usually attract multiple offers or sell very quickly. We are approaching the time of year that many sellers put their homes on the market. If building levels escalate on par with the increased number of lot sales, we’ll see if the pendulum shifts or if the demand can keep up with the new units.

While it is increasing becoming a good time to sell, it’s still a good time to buy as rates are still attractive and prices, although rising, are still below peak levels. The included data reflects sales of homes on both less than and greater than 1 acre 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.