Bozeman May Real Estate Report
by Tim Ford | Monday May. 2nd, 2016
While the weather has been volatile across the valley, the Bozeman Real Estate market continues to remain hot. As the bears in Yellowstone are starting to come out of their dens, Real Estate buyers are also immerging from their winter hibernation.
Condos & townhomes are in strong demand and inventory is low. Year to date, 93 condos & townhomes have already sold at a median sold price of $222,000. In addition to those sales, another 100 units are currently under contract or pending. This is compared to a median sold price last year of $205,000 and 84 units sold during the same time period.
Distressed sales, a solid part of our market for many of the recession years, have almost faded entirely. Foreclosures & short sales once made up nearly 25% of our sales annually. Now, they’ve faded to less than 3% as prices have risen high enough to bring almost all homeowners above water again.
The Belgrade market, which generally follows the Bozeman market, also remains strong. Year to date, 57 single family homes have sold at a median sold price of $249,900. This is compared to 52 sales at a median sold price of $233,500 during the same time period last year.
Interest rates continue to remain at historical lows. As of writing, they’re currently hovering around 3.65% for a conventional 30 year fixed mortgage. Combine these low interest rates with the rising local rents around the valley and it makes the case for homeownership even stronger. Buyers should not underestimate the effect of interest rates on the affordability of a home.
As usual, I have included data for the number of single family homes sold during the first 3 months of 2016. In addition to the 170 single family homes sold during this time period, another 220 homes are currently pending, or under contract, as of the date of writing this article.
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, Condominiums, or Townhouses.