Year End Real Estate Market Update
Tim Ford | Saturday Feb. 1st, 2025
In 2024, Bozeman’s real estate market exhibited notable trends, reflecting both regional dynamics and broader national patterns. Inventory saw noteworthy increases, while pricing saw more modest gains.
Inventory expanded, moving the market towards a more balanced state. Looking at new listings of all residential types, including condos, townhouses, and single family, both inside and out of city limits, the peak year for inventory and sales was 2020, in which 1,982 homes were listed for sale, and 1,816 of those were sold.
Between 2020 and 2023, new listings continually decreased. In 2021, 1,747 homes were listed and 1,669 were sold. In 2022, there were 1,607 new listings and 1,160 sales. Last year, new listings were down to 1,532 along with 1,070 sales. This year, listings were back up near 2021 numbers, with 1,741 homes listed in and around Bozeman. Sales remained similar to last year, with 1,037 homes sold.
Restricting the data to just single-family homes inside Bozeman city limits tells a similar story, although 2019 was the peak for new listings, when 707 homes were listed and 591 were sold. By 2021, those numbers had decreased to 555 new listings and 514 sales. 2022 saw 475 new listings and 355 sales. Last year, it continued to decrease, with 465 new listings and 344 sales. This year, new listings were again back up, with 527 homes brought to market, while 322 of those homes sold.
Pricing, which was essentially flat last year, saw small increases this year. There are multiple ways to run the median sold price, depending on whether one includes just homes inside city limits, or condos and townhouses.
Looking back at pricing for just single-family home sales inside Bozeman city limits over the past few years, in 2022, the median sold price rose 14%, from $700,000 in 2021 to $799,000 in 2022. Last year, it appeared to be down slightly from 2022, sitting at $770,000, which would indicate a 3.6% decrease. This year, the median sold price for single family homes inside city limits is up slightly from last year, coming in at $779,500.
Running the median sold price for areas both inside and outside of Bozeman city limits, including areas like Bridger Canyon, south valley, north valley, etc., the median sold price did not take the same dip last year. It rose just over one percent, from $889,950 in 2022 to $900,000 in 2023. This year, it again rose another 2.7% from last year, to $925,000.
New construction listings also increased this year. Looking in both Bozeman and Belgrade, across all residential types including condos, townhouses, and single family homes, in 2020 there were 729 new construction homes listed for sale on our local MLS. This does not include custom homes or homes sold directly from builder to buyer, just new construction homes listed for sale on the MLS. In 2021, that number decreased by more than fifty percent, to 345. 2022 was up just slightly, with 395 new construction listings. It continued to rise slightly last year, to 397 new listings. This year, it took a bigger bump, with 525 new construction homes listed, but was still well below the 729 listed in 2020.
Perhaps the biggest news for 2024: High end sales set a new volume record. The pandemic saw a significant increase in the number of luxury homes sold in our market, and those numbers have held out or increased most years since. These numbers include homes inside and outside of Bozeman city limits: In 2019, only 11 homes sold for more than $2 million. That number nearly tripled to 32 closed sales in 2020, then nearly doubled again to 56 homes sold for more than $2 million in 2021. Sales volume continued to rise in 2022 to 63 sales. Last year, it was down, but just slightly, as 52 homes sold north of $2 million. This year, the number of closed sales north of $2 million hit a new high, with 82 homes sold.
As we enter 2025, questions loom about the trajectory of interest rates, potential policy changes with a new administration, and shifts in buyer demand. Will rates stabilize or decrease? How will economic and political factors shape the market? Time will reveal these answers. As usual, I have included the most recent sales numbers for Bozeman. In addition to these sales, there are currently 53 single family home sales pending in and around Bozeman.
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.
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