Bozeman’s real estate landscape continues to evolve. The combination of prices and interest rates has affected affordability across the entire country, and Bozeman has not been immune. While many have been hoping for a decline in mortgage interest rates, that has yet to materialize. Rates are expected to move lower in 2025, but not necessarily significantly. Meanwhile, the number of cash transactions in Bozeman has fluctuated across market segments, declining in some areas and reaching new levels in others.

The number of cash transactions for single family home sales across the Bozeman market was down slightly from recent years, but above the pre-covid average. Looking at single family home sales both inside and outside of Bozeman city limits from January 1st to June 1st: 

Back in 2019, about 25.7% of sales, or 88 out of 343, were cash transactions. As we navigated through 2020, the percentage dipped to just under 20%, with 62 out of 311 sales. Then came 2021, a year marked by a significant leap: 103 out of 341 homes, or just over 30%, were bought with cash.

The peak arrived in 2022 with an impressive 39%, or 105 out of 268 sales. In 2023 and 2024, we saw a slight decline from that peak, but they were strikingly similar, and remain above the pre-pandemic average. In 2023, 32.2% of transactions (82 out of 254) were all-cash deals, closely followed by the first five months of 2024 with 32.4% (83 out of 256). This year, the percentage is a bit lower, with 27%, or 63 of the 233 home purchases completed with cash.

Historically, the percentage of cash sales hovered in the low 20% range, displaying consistency despite minor fluctuations. For instance, in 2015, 85 out of 371 sales (22.9%) were cash, while in 2014, 70 out of 318 sales (22%) and in 2013, 61 out of 276 sales (22.1%) were made in cash.

In the past, a larger percentage of the single-family home sales in the downtown area have been cash transactions, but that was not the case this year. Again, looking at single family home sales during the period of January 1st through June 1st; in 2019, 32% (18 out of 56 homes) were cash purchases. The following year saw a rise to 39% (20 out of 51 homes). By 2021, 44% of sales (22 out of 50 homes) were cash. 2022 was again a big year, with 45% (19 out of 42 homes).

Those numbers dipped slightly in 2023 to 34% (13 out of 38 homes), but surged again last year, setting a record with 50% (20 out of 40 homes) of downtown single family home sales made in cash. This year, both overall sales numbers and the number of cash transactions are down. Twenty-seven single family homes sold, compared to 40 this same time last year. Of those, six, or 22%, were cash purchases.

This year, the downtown condo market did not follow the single-family home market. Looking back, in 2019, 36% (12 out of 33) of condos were bought with cash. This nudged up to 37.5% (9 out of 24) in 2020, before slightly dipping to 33% (10 out of 30) in 2021. The year 2022 again saw a significant rise, with 44% (17 out of 39) of condo sales being cash transactions. Despite a drop in total sales to 29 in 2023, the percentage of cash purchases increased greatly to 62% (18 out of 29). Sales this year were remarkably similar to last year. In both 2024 and 2025, there were 25 closed sales of downtown condos between January 1st and June 1st. Last year, 60% (15) of those were cash purchases. This year, 72% (18) of those purchases were made in all cash.

The number that is harder to track is the number of buyers bringing large chunks of equity from other markets into our market, or moving within the Bozeman market. Anecdotally, many of the buyers purchasing homes in Bozeman above $1million may not be making the purchase in all cash, but they are often making significant down payments, approaching and often above 50%. This is often the result of selling homes in markets where prices are similar, or perhaps even higher than in Bozeman, and then bringing that equity to their purchase here.

As usual, I have included data for the number of single-family homes sold during the first five months of 2025. In addition to the 233 single family home sales, there are currently 114 single family home sales pending or under contract in and around Bozeman.

The included data reflects sales of homes in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and within Bozeman city limits. The data includes home sales reported through the local Big Sky Country MLS, and does not include private party sales, condominiums, or townhouses.