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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 2018 to 2017 sales and inventory information using the Big Sky Country Multiple Listing Service (BSCMLS) reported data as the source.
Within the city limits of Bozeman, single family home sales increased by 8%. There were 610 single family homes sold in 2018, compared to 565 in 2017. The average sales price for these single family homes showed nice growth with a 12% increase to $478,739 in 2018 from $425,988 in 2017 and $401,866 in 2016. The median sales price was $427,500 for single family homes, also up 12% from $381,500 in 2017.
At the end of 2018, there were 101 active residential properties listed for sale which was an increase from 83 at the conclusion of 2017, equaling an increase of 22%. 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 $500,000, which translates to a seller’s market.
The condo/ townhome market remained flat with 444 units sold in 2018 within the Bozeman city limits compared to 446 the previous year. The lack of available inventory, especially in the entry-level price point, again held back true demand. The number of available units at the end of 2018 was down to 76 units compared to 86 at the end of 2017. Attached housing showed a nice 13% increase from an average of $297,958 in 2017 to $336,979 in 2018, and the median price of $299,900 for condo/townhomes is up 15% from the $260,000 of 2017.
The single family sales in the subdivisions and more rural areas immediately surrounding Bozeman decreased from 435 units in 2017 to 409 in 2018, a 6% loss. However, the average sales price showed a 9% increase from $607,804 in 2017 to $663,307 in 2018, as well as a 12% median price rise from $459,000 in 2017 to $515,000 in 2018. This area contains price extremes of properties from entry-level housing to the luxury, second-home market. At year end, 118 properties were available for sale, which is a 9% increase from the previous year’s 108.
Belgrade and the surrounding market showed a 9% decrease with 325 single family homes sold in 2018 versus 358 in 2017. The average sales price increased a solid 12% from $322,039 in 2017 to $361,505 in 2018, and the median weighed in at $320,000 which is up 11% from 2017. The condo/ townhome market exhibited a 19% increase with 100 sales in 2018 compared to 84 in 2017, along with an average sales price up 21% to $225,999 in 2018 from $187,290 in 2017. In the Belgrade area, the supply of homes available for sale remains quite low with only 70 single family homes and 14 condo/ townhomes available at the close of 2018.
Within the Manhattan/Three Forks region, single family home sales increased by 29% from 98 sales in 2017 to 126 in 2018. Average sales price jumped 6% from $326,036 to $346,681, while the median increased 8% to $305,700.
Big Sky, including Gallatin Canyon, showed some positive momentum with a 15% increase in sales of single family homes sold from 80 in 2017 to 92 in 2018. The average sales price rose 18% from $1,406,483 in 2017 to $1,666,214 in 2018. The median price jumped from $1,165,000 to $1,450,000. Condo/ townhome sales grew 8% to 181 sold units in 2018 versus 167 units in 2017. There was a significant average price increase from $450,943 in 2017 to $544,091 in 2018. Single family inventory available at the end of 2018 dropped 25% to 71 units, and there were 61 condo/ townhomes available. Big Sky is a difficult market to accurately track as much of the sales occur outside of the MLS reporting.
The market in Livingston and surrounding Park County showed a 6% decrease in sales with 238 single family homes sold in 2018 compared to 252 in 2017. Average sales price jumped 7% from $348,371 in 2017 to $373,916 in 2018, with a median sales price of $319,875. Inventory for the county finished the end of 2018 with 65 available properties, down 16% from 77 in 2017.
Ennis and the Madison Valley saw the number of sales for single family homes decrease from 81 to 72 units, average prices increased by 11% from $368,942 to $408,726, and the median weighed in at $340,750 for 2018, up 26% from $271,000 in 2017. Home inventory dropped from 69 units to 65 units at the end of 2018.
As for 2019, buyer demand continues to outpace current inventories. There is an ample supply of lots coming to the market in the next 12 to 18 months that should help equalize market conditions.