Community News

As we fondly say farewell to 2010, a year that exceeded most expectations, we look forward to improving market conditions in 2011.  The first month of the year has shown increased buyer interest in all areas of our region.  Many offices are reporting more showings and accepted offers.   It appears that buyer confidence is improving with more “real buyers” in the market.

2010 was a very good year in comparison to 2009, though far from the record pace of 2006.   Many positive indicators are evident with increased sales in every location, declining inventories in most areas, and upward trends in median sales prices in Big Sky and rural Bozeman.  This recap is a comparison of 2010 to 2009 sales information, the source is the Southwest Montana Multiple Listing Service (SWMLS).  

Within the city of Bozeman, sales increased by 11.3%.  There were 324 single-family homes sold in 2010, compared to 291 in 2009.  There were 195 condo/ townhomes sold in 2010 which was equal to sales in 2009.  The average sales prices for single-family homes remained relatively flat with only the slightest decrease from $276,730 in 2009 to $275,651 in 2010, while attached housing declined from an average of $204,051 in 2009 to $183,774 in 2010.  The median sales price was $239,925 for single-family homes, a decline of 6.3% from 2009, and $162,000 for condo/ townhomes, down 10.7% from 2009.   

Of particular note is the supply of homes within Bozeman is at a 4-year low, which is down 41% from the high point of September 2007.  Homes that are priced under $275,000 are selling quite well.  Based on the current supply and the number of homes sold in this price range in the last 12 months, there is a 3.7-month supply of inventory available.

The subdivisions and rural areas immediately surrounding Bozeman also had healthy statistics with single-family sales up from 171 units in 2009 to 206 in 2010, a 20.5% increase. The average sales price showed a slight increase from $425,948 to $434,200 as well as a median price jump from $315,000 in 2009 to $331,000 in 2010.  This area contains both extremes, from entry-level housing to the luxury second home market.  

Belgrade and the surrounding market remained fairly stable with 163 single-family homes sold in 2010 versus 157 in 2009.  The average sales price decreased by 16.98% (the greatest decline in the regional market) from $232,114 in 2009 to $192,696 in 2010.  The condo/ townhome market experienced a decrease in both the units sold and the average sales price.  There were 34 sales in 2010 compared to 35 in 2009 with an average sales price of $104,770 in 2010, down from $128,235 in 2009.  In the Belgrade area, the supply of homes available for sale decreased by 10% during that same time comparison, indicating progress toward a better balance of buyers and sellers.

Within the Manhattan/ Three Forks region, single-family home sales increased a substantial 64.9% from 37 sales in 2009 to 61 in 2010.  Average sales price rose slightly from $199,073 to $204,533, while the median declined to $177,000 a 10.4% decrease.    

Big Sky, including Gallatin Canyon and West Yellowstone, showed nice market gains, with a 26.8% increase in sales of single-family homes sold from 41 in 2009 to 52 in 2010.  The average sales price decreased from $855,234 to $735,606, yet the median price increased from $550,000 to $582,000.  Big Sky’s average sales price is nearly half of the peak of $1,439,527 in 2006.  Condo/townhome sales showed a dramatic 54.8% increase with 96 sold units in 2010 versus 62 units in 2009.  There was a subtle average price decrease from $322,599 in 2009 to $315,454 in 2010, which represents a 54% decline from the peak average price in 2008. Single-family residential inventory levels remained static with 145 active listings at year-end and condo/townhomes have declined by 3%.

The market in Livingston and surrounding Park County showed a 23.2% increase in sales of 138 single-family homes sold in 2010 compared to 112 in 2009.  The average sales price decreased from $247,380 in 2009 to $222,266 in 2010.  Condo/ townhome sales in Livingston showed a drop from 13 to 9 units in 2010 with a corresponding average price decrease from $150,600 to $130,122.

There is a daily national focus on distressed sales.  Here are the local stats for 2010 foreclosures and short sales.  Out of  944 total single-family homes sold in Gallatin, Madison, Jefferson, and Park Counties, 169 (18%) were REO or bank-owned properties, 67 (7%) were short sales, and the remaining 708 (75%) were traditional sales.  Condo/ townhome sales showed 74 (22%) REO sales, 26 (7%) short sales, and 236 (71%) traditional sales.

Recognizing that vacant land sales hit a record low in 2009, this segment rebounded quite nicely in 2010, in some cases exceeding 2008 sales.  Bozeman sales were up 119.5% from 41 sales in 2009 to 90 in 2010, with average sales prices increasing from $56,359 to $86,328.  Rural Bozeman increased 30.5% from 59 to 77 sales units with an average sales price rising from $195,687 to $212,408.  Belgrade land sales rose from 11 to 21, and the average price decreased from $134,409 to $110,254.  Manhattan and Three Forks jumped from 24 to 43 sales units with a large increase in average price up to $81,355 in 2010 from $41,629 the previous year.  The Big Sky area showed a positive gain from 29 to 35 sales and a small decrease in average price from $371,122 to $364,014.  Park County saw the only decrease in sales units from 29 to 26, yet the average price rose from $133,208 in 2009 to $157,650 in 2010.  

Remember, all “real estate” is local, and gratefully our numbers are improving.  Though we will likely experience similar numbers of distressed sales in 2011, the positive indicators point to a positive real estate year in our region. The key market statistics to continue to watch are local unemployment numbers, declining listing inventory, increasing sales units, and increasing median sales prices.  Best wishes for a prosperous and productive 2011.