The July numbers are in, and the Bozeman housing market continues to show strong buyer activity despite mortgage rates averaging around 6.7% nationally.
Sales activity is accelerating. July closed sales reached their highest monthly level of the year so far – up 32.7% from July 2025 and the strongest July sales volume since 2021. New pending sales also remained strong, increasing 23% year-over-year.
Inventory remains a bright spot for buyers. Available inventory has steadily increased from its 2021 lows, giving buyers significantly more options. While July’s month-end inventory was down 7% from the recent highs of June, July and August 2025, it still exceeded any other month since July 2016.
New listings are helping fuel that supply, increasing 13% year-over-year and 2.4% year-to-date. However, sales are outpacing new listings, resulting in an absorption rate of 27% – above the National Association of Realtors’ 15–20% range typically associated with a balanced, healthy market.
For buyers, that means more choice, but less time to hesitate on the right property. Median days on market fell to just 15 days in July, with homes selling about 30% faster than they did a year ago. In particular, well-priced, high-quality properties are moving quickly.
Despite all this demand, or perhaps contributing to it, is cooling pricing. The year-to-date median sales price is down 4.7%, while July’s median sales price of $755k was approximately $100,000 – or 12.2% – below July 2025.
So, what does this mean for buyers and sellers?
Buyers: Buyers have access to some of the strongest inventory levels in a decade, creating a relative abundance of choice. But they need to be prepared to act quickly as quality, appropriately priced homes are selling quickly.
Sellers: The market is rewarding well-positioned properties, and appropriately priced homes are continuing to sell within reasonable timelines. The days of simply testing the market with an aspirational price are becoming less effective.
Current inventory competition highlights the importance of working with a realtor attuned to the market and ready to provide an honest and market-appropriate assessment of your home’s value.
