Another busy and productive year has passed in the Southwest Montana real estate market, so it is time to crunch numbers and reflect on what truly transpired. This summary compares 2019 to 2018 sales and inventory information using the Big Sky Country Multiple Listing Service (BSCMLS) reported data as the source.
Bozeman City Single Family Homes:
Within the city limits of Bozeman, single family home sales decreased by 3%. There were 592 single family homes sold in 2019, compared to 610 in 2018. The average sales price for these single family homes showed nice growth with a 7% increase to $513,704 in 2019 from $478,739 in 2018 and $425,988 in 2017. The median sales price was $460,000 for single family homes, up 8% from $447,500 in 2018.
At the end of 2019, there were 85 active residential properties listed for sale which was a decrease from 101 at the conclusion of 2018, equaling a decrease of 16%. Based on current supply and the number of homes sold in the previous 12 months, there remains a scarcity of inventory in any of the price ranges reported under $600,000, which translates to a seller’s market.
Bozeman City Condo/Townhouse Market:
This market remained flat with 439 units sold in 2019 within the Bozeman city limits compared to 444 the previous year. The number of available units at the end of 2019 was up significantly to 107 units compared to 76 at the end of 2018. Attached housing showed a 2% increase from an average of $336,979 in 2018 to $343,356 in 2019, and the median price of $320,000 for condo/townhomes is up 7% from the $299,900 of 2018.
In the areas surrounding Bozeman City, Single family home sales decreased slightly from 409 units in 2018 to 404 in 2019, a 1% loss. However, the average sales price showed a 10% increase from $663,307 in 2018 to $732,471 in 2019, as well as a 7% median price rise from $515,000 in 2018 to $552,704 in 2019. This area contains price extremes of properties from entry-level housing to the luxury, second-home market. At year end, 106 properties were available for sale, which is a 10% decrease from the previous year’s 118.
Belgrade and the surrounding market showed a 20% increase with 390 single family homes sold in 2019 versus 325 in 2018. The average sales price increased a solid 8% from $361,505 in 2018 to $390,600 in 2019, and the median weighed in at $340,950 which is up 7% from 2018. The condo/townhome market exhibited a 24% increase with 124 sales in 2019 compared to 100 in 2018, along with an average sales price up 14% to $257,660 in 2019 from $225,999 in 2018. In the Belgrade area, the supply of homes available for sale remains quite low with only 76 single family homes and 32 condo/ townhomes available at the close of 2019.
Within the Manhattan/Three Forks region, single family home sales decreased by 20% from 126 sales in 2018 to 101 in 2019. Average sales price jumped 11% from $346,681 to $385,972, while the median increased 10% to $335,000.
Big Sky Market:
Big Sky, including Gallatin Canyon, showed a 20% decrease in sales of single family homes sold from 92 in 2018 to 74 in 2019. The average sales price rose 33% from $1,681,667 in 2018 to $2,234,112 in 2019. The median price jumped from $1,475,000 to $1,760,000. Condo/townhome sales decreased 14% to 172 sold units in 2019 versus 201 units in 2018. There was a median price increase from $459,000 in 2018 to $550,500 in 2019. Single family inventory available at the end of 2018 grew 6% to 75 units, and there were 98 condo/townhomes available. Note: Fractional interest sales and an HRDC condo housing project was removed from the dataset. The 16 HRDC sales from 2019 had an average sales price of $261,563.
The market in Livingston and surrounding Park County showed a 2% decrease in sales with 234 single family homes sold in 2019 compared to 238 in 2018. Average sales price jumped 15% from $373,916 in 2018 to $430,298 in 2019, with a median sales price of $323,750. Inventory for the county finished the end of 2019 with 77 available properties, up 18% from 65 in 2018.
This market saw the number of sales for single family homes increase from 72 to 79 units, average prices increased by 18% from $408,726 to $483,234, and the median weighed in at $350,000 for 2019, up only 3% from $340,750 in 2018. Home inventory dropped from 65 units to 48 units at the end of 2019.
What should we expect for 2020?
With our current shortage of homes for sale, we anticipate Buyers will find areas outside of Bozeman city limits to be a newer, attractive alternative. Belgrade’s new construction is turning heads and getting attention from Buyer’s who may have felt priced out of the market in Bozeman. Builders in Belgrade are providing a consistent product and at a fast pace. The amount of new construction permitted in Belgrade forecasts hundreds of new homes to come to the market this year. Bozeman still has a robust condo/townhouse market and we expect to see it remain an attainable option. With fewer lots on the market in Bozeman, there is a strong probability that builders will continue to develop and build in surrounding areas. We have seen steady and consistent growth in almost all sectors of the real estate market and we do not expect the trajectory to slow down in 2020.