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Market Update September 2023 | Bozeman & Big Sky, MT

Navigating Bozeman’s September Real Estate Shift

Bozeman’s September real estate market shows a shift compared to the same period last year. We observe fewer closed sales, a decline in new listings, and an increase in days on the market. This leveling off provides a more balanced negotiation environment for buyers and sellers, likely influenced by rising mortgage rates while median home prices remain high.

Single Family Home new listings are down 22% YoY

Condos / Townhomes new listings are down 13% YoY

Flatlining Prices: Bozeman Real Estate Pricing Holds Firm

After pricing in the valley peaked at an all time high in August, September showed some relief with median sales price down 6.3% and median price per square foot down 3.2%. Despite this adjustment, the median home price of $801,000 is still up 1.4% from September of 2022. 

Single Family Home Median sales price down 1.8% YoY

Condos / Townhomes Median sales price up nearly 10% YoY

Winter Slowdown in Sales Comes Early: Bozeman Real Estate Inventory Insights

Things are slowing down on the inventory front, both from this time of year and in comparison to this time last year. September closed sales are down 16% from August and 21.2% YoY. New listings saw a drop of 33.7% and are listing nearly 19% slower than September, 2022. At this rate, months supply of inventory are up 11.3% from August, and 26.6% YoY.

The transition into the winter season is happening at an accelerated pace in Bozeman’s real estate market. As we navigate these seasonal fluctuations, it’s essential for both buyers and sellers to remain attuned to these changes and make informed decisions in this dynamic market landscape.

Single Family Home closed sales are down 16% YoY

Townhomes / Condos closed sales down 42% from August and down 30% YoY

Market Balance: Bozeman’s Average Sale-to-List Price Remains Steady

When will pricing drop? While buyers may be waiting in the sidelines for the summer peak to pass, we’re still seeing sellers receiving an average of 98.1% of final list price. This would indicate that for now, there is enough demand to keep the valley in a seller’s market. Look toward November for historical yearly price drops.

It’s important to remember, however, that each transaction’s context is vital. Successful deals still hinge on smart pricing, and whether to offer above or below the asking price should be carefully considered on a case-by-case basis in consultation with a real estate agent.

Single Family Home % list price received 97.8%

Condos / Townhomes % list price received 98.6%

Big Sky Single-Family Homes: Experiencing a Slight Relief in Pricing

Single Family home prices (Excluding Private Clubs) are trending slightly down from this time last year. Buyers have more bargaining leverage than in the Bozeman market as indicative of homes sitting on market for a long time and sellers receiving less than 95% of list price.

Despite Big Sky still sitting in a sellers market with closed sales trending up in September and new listings coming to market falling minorly. We are seeing buyers gain more leeway in the negotiation process.

Big Sky Single-Family Homes – Excluding Private Clubs

Median Sales Price: Down 23% from August

Days on Market: 205 – up 150% YoY; up from most of this year

Avg. Price Per/SqFt: $710 – down 22% from Aug

Click Photo Above to View Recent Price Reduction Listing – Inspiration Point 1b

Big Sky Condos and Townhomes: Winter Chill Hits Prices and Days on Market

Click Photo to View Featured Big Sky Listing – 319 Skywood Dr

Big Sky Condos & Townhomes – Excluding Private Clubs

Sales: Prices have seen a decline, with the median sales price now standing at $1.4 million, marking a 15% decrease from August and an 11% drop year-over-year.

$/SF: The price per square foot has also decreased, currently at $631, down by 6% from August and 12% year-over-year.

New Listings: Interestingly, there’s been an influx of new listings, with 10 new properties hitting the market. This reflects an above-average flow of inventory for Big Sky this year.

Things To Consider: In These Markets

Mortgage rates have surged past 7.5% this month, leaving a notable impact on the real estate market. While inflation, a key concern for the Federal Reserve, has started to ease, it still remains below the Fed’s target. This shift in mortgage rates emphasizes the need for prospective homebuyers to carefully consider their financing options in this evolving economic landscape.

In conclusion, while the market is experiencing some interesting supply and price fluctuations, it’s important to stay informed. Feel free to reach out to the Outlaw Realty team for more information or assistance with your real estate goals.

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