Community News

It is difficult to believe that we are marching into another new year.  2015 was a very fast-paced real estate year for all of the local markets, with continued shortages of affordable inventory and very high buyer demand. This summary compares 2015 to 2014 sales and inventory information using the Southwest Montana Multiple Listing Service (SWMLS) reported data as the source.  

Within the city of Bozeman, single-family home sales increased by 6%.  There were 556 single-family homes sold in 2015, compared to 523 in 2014.  There was a minimal increase to 404 condo/townhomes sold in 2015, which equaled 1% growth over the 399 sales in 2014.  Of particular interest is the strong condo demand fueled by investors and representing the most attainable housing in Bozeman.  We could sell more units if there was more available inventory. The average sales price for single-family homes showed significant growth with a 15% increase to $382,033 in 2015 from $331,817 in 2014, while attached housing showed a nice 8% increase from an average of $216,525 in 2014 to $233,874 in 2015.  The median sales price was $339,000 for single-family homes, up 13% from $299,900 in 2014, and $205,500 for condo/townhomes, up 4% from $197,000 in 2014.   

Last year, the supply of single-family homes within Bozeman showed a small but welcome increase.  At the end of 2015, there were 126 active residential properties listed for sale compared to 112 in 2014.  Based on the current supply and the number of homes sold in a given price range in the prior 12 months, there is no more than a 4.5-month supply of inventory in any of the price ranges reported under $500,000.

 The subdivisions and rural areas immediately surrounding Bozeman fared well in that single-family sales increased from 356 units in 2014 to 465 in 2015, a 31% increase. Some of this success is due to the return of the mid to high-end markets.  Of particular note is the price range from $500,000 to $1,000,000 which shows strong gains in sales from 77 in 2014 to 135 in 2015, a 75% increase in the number of sales. There were 37 sales over $1,000,000 in 2015 compared to 29 in 2014. Furthermore, within the Bozeman city limits, there were 7 sales over $1,000,000 for this year and only 1 in 2014.  The average sales price showed a minimal 2% increase from $529,693 in 2014 to $541,259 in 2015, as well as a 4% median price jump from $391,000 in 2014 to $405,000 in 2015.  This area contains price extremes of properties from entry-level housing to the luxury second home market.  At year-end, 175 properties were available for sale, which is a 15% decrease from the previous year’s 205.

 Belgrade and the surrounding market showed a 12% decrease with 268 single-family homes sold in 2015 versus 303 in 2014.  However, the average sales price increased by 16% from $252,873 in 2014 to $292,644 in 2015, and the median weighed in at $234,500.  The condo/townhome market exhibited nice growth again with 83 sales in 2015 compared to 64 in 2014, with an average sales price up 16% to $143,694 in 2015 from $123,440 in 2014.  In the Belgrade area, the supply of homes available for sale remains very low with only 53 single-family homes and 12 condo/townhomes available at the closing of 2015.

 Within the Manhattan/Three Forks region, single-family home sales increased 13% from 96 sales in 2014 to 108 in 2015.  The average sales price jumped 21% from $218,230 to $263,099, while the median increased 15% to $230,000.   

 Big Sky, including Gallatin Canyon and West Yellowstone, showed some market decline with a 23% decrease in sales of single-family homes sold from 111 in 2014 to 86 in 2015.  The average sales price decreased from $1,336,704 in 2014 to $1,067,952 in 2015.  The median price decreased from $650,732 to $622,000. Condo/townhome sales declined 20% to 136 sold units in 2015 versus 169 units in 2014.  There was a slight average price decrease from $451,387 in 2014 to $443,353 in 2015. It is important to note that the new residential sales occurring in the Yellowstone Club are not shown in our MLS statistics.  The Big Sky market is very healthy and robust, along with extremely challenging for affordably priced properties. 

 The market in Livingston and surrounding Park County showed a 34% increase in sales with 239 single-family homes sold in 2015 compared to 179 in 2014.  The average sales price rose 28% from $237,358 in 2014 to $302,810 in 2015, with a median sales price of $219,000.  A portion of this sales activity is driven by increasing housing prices in Bozeman and buyers choosing to commute for the value proposition of Livingston’s comparative affordability.

 Ennis and the Madison Valley saw nice market gains from 2014 to 2015.  The number of sales for single-family homes rose 20% from 64 to 77 units, average prices increased by 10% from $321,321 to $353,964, and the median weighed in at $267,000 for 2015, up from $236,950 in 2014. There is renewed interest in Ennis as a great place to retire and purchase summer home getaways. 

What should we expect for 2016?  Here are a few predictions.  Look for ongoing inventory shortages in all markets for attainable housing, a slight increase in the number of sales increases in median prices in most markets in the 6% to 8% range, continued buyer confidence and demand for the $500,000 to $1,500,000 tier, and a few new subdivisions coming to the market that may ease supply issues.  The other variables to watch are the inevitable and continued increase in interest rates, local job creation, and population trends.