Community News

2011 exhibited more of the same positive upward trends that we witnessed in 2010 and compared to 2007 in many ways, which is a benchmark year in which we thought the market was relatively “good”.   This recap is a comparison of 2011 to 2010 sales information, the source is the Southwest Montana Multiple Listing Service (SWMLS). 

Within the city of Bozeman, single-family home sales increased by 9%.  There were 353 single-family homes sold in 2011, compared to 324 in 2010.  There was a large jump to 256 condo/ townhomes sold in 2011 which equaled 31.3% growth over the 195 sales in 2010.  The average sales prices for single-family homes remained relatively flat with only the slightest decrease from $275,651 in 2010 to $273,817 in 2011, while attached housing declined 7.63% from an average of $183,774 in 2010 to $169,761 in 2011.  The median sales price was $240,000 for single-family homes, essentially even to $239,925 from 2010 and $150,000 for condo/ townhomes, down 7.4% from 2010.  

Of particular interest is that the supply of homes within Bozeman continues to decline, with less than half of the availability from the high point of 2007.  At the end of 2011, there were 136 active residential properties listed for sale compared to 164 in 2010 and 279 at the end of 2007.  Homes that are priced under $300,000 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 less than a 3.3-month supply of inventory available. 

The subdivisions and rural areas immediately surrounding Bozeman also had healthy growth with single-family sales up from 206 units in 2010 to 246 in 2011, a 19.4% increase. The average sales price showed a decrease from $434,200 to $371,178 as well as a median price decline from $331,000 in 2010 to $288,500 in 2011.  This area contains both extremes of price from entry-level housing to the luxury second home market. 

Belgrade and the surrounding market showed an 11.7% increase with 182 single-family homes sold in 2011 versus 163 in 2010.  The average sales price increased a slight 1.94% from $193,582 in 2010 to $196,431 in 2011.  The condo/ townhome market experienced an increase in the units sold yet a decrease in average sales price.  There were 49 sales in 2011 compared to 34 in 2010 with an average sales price of $78,580 in 2011, down from $104,770 in 2010.  In the Belgrade area, the supply of homes available for sale decreased by 27% during that same time comparison, with only 77 homes available at the closing of 2011.

Within the Manhattan/ Three Forks region, single-family home sales increased a modest 6.6% from 61 sales in 2010 to 65 in 2011.  The average sales price rose slightly from $204,533 to $207,413, while the median declined to $173,000.   

Big Sky, including Gallatin Canyon and West Yellowstone, once again showed nice market gains with a 23.1% increase in sales of single-family homes sold from 52 in 2010 to 64 in 2011.  The average sales price increased from $735,606 to $955,812 (29.94%), yet the median price decreased from $582,000 to $552,000. Condo/townhome sales showed a striking 42.7% increase with 137 sold units in 2011 versus 96 units in 2010.  There was a subtle average price decrease from $315,454 in 2010 to $298,714 in 2011.  Single-family residential inventory levels decreased slightly with 122 active listings at year-end and condo/townhomes have declined by 29%.

The market in Livingston and surrounding Park County showed an 8.7% increase in sales with 150 single-family homes sold in 2011 compared to 138 in 2010.  The average sales price increased from $222,266 in 2010 to $230,692 in 2011.  Condo/ townhome sales in Livingston rose from 9 to 16 units in 2011 yet with an average price decrease from $130,122 to $95,706.

There is still much national focus on distressed sales and how they are affecting both prices and levels of sales.  Here are some local stats for 2011 foreclosures and short sales as reported by the Gallatin Association of REALTORS®.  Out of 1,439 total residential sales in Gallatin County, 289 (20%) were REO or bank-owned properties, 146 (10%) were short sales, and the remaining 1,004 (70%) were traditional sales.  In Park County, 22.78% of residential sales for 2011 were reported as foreclosures and 3.33% were short sales.

After vacant land sales showed some nice gains in 2010, this segment remained flat and had the identical number of sales for 2012 as 2011, a total of 292 each year.  The construction activity shifted from within the Bozeman city limits to rural Bozeman, perhaps because of impact fees and entry-level lot prices.  Bozeman sales were down 15.6% from 90 sales in 2010 to 76 in 2011, with average sales prices decreasing from $86,328 to $81,235.  Rural Bozeman increased 19.5% from 77 to 92 sales units with an average sales price falling from $212,408 to $140,827.  Belgrade land sales stayed mostly stable falling only from 21 to 20, yet the average price skyrocketed from $110,254 to $205,635.  Manhattan and Three Forks edged up from 43 to 47 sales units with a large decrease in average price down to $44,410 in 2011 from $81,355 the previous year.  The Big Sky area showed a small dip from 35 to 32 sales and a slight increase in average price from $364,014 to $375,142.  Park County saw the sales units decrease from 26 to 25, yet the average price rose from $157,650 in 2010 to $240,284 in 2011.  One point to keep in mind is that with such low total sales numbers in some of these markets, either one very large or one very small sale can skew the average sales price tremendously.

The first six weeks of 2012 are full of renewed optimism, stronger consumer confidence, and sales momentum, with buyers moving about the marketplace and making decisions.  The lower inventory levels in the primary markets (under $300,000) coupled with virtually no available rentals have created a sense of urgency in the market for the first time in many years.  Vacant lots are moving at a healthy pace with builders securing multiple lots, especially in the more affordable neighborhoods.  And, we are seeing some movement occur in the higher end in rural Bozeman as well as the second home and luxury market in Big Sky.  Here is to a successful selling season in 2012.