Community News

As we say farewell to 2016, there is great anticipation for what 2017 will have in store for us.  Our challenge will continue to be having and creating sufficient inventory in virtually every price range.  Let's take a look in the rearview mirror to see where we have been. This summary compares 2016 to 2015 sales and inventory information using the Southwest Montana Multiple Listing Service (SWMLS) reported data as the source. Additionally, I am interjecting historical data as a point of reference as to how the market has fluctuated over the past decade. Within the city limits of Bozeman, single family home sales increased by 6%.  There were 587 single family homes sold in 2016, compared to 556 in 2015. Comparatively, the number in the heyday of 2007 was 334 sales, and the lowest point in the last 10 years was 291 units in 2009. The average sales price for single family homes showed moderate growth with a 5% increase to $401,866 in 2016 from $382,033 in 2015. The previous peak in 2007 was an average price of $337,400. The median sales price was $359,000 for single family homes, up 6% from $339,000 in 2015. Last year, the supply of single family homes within Bozeman showed a significant decrease.  At the end of 2016, there were 83 active residential properties listed for sale compared to 126 in 2015, down by 34%.  Based on 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 $600,000. There was an increase to 444 condo/townhomes sold in 2016, which equaled 10% growth over the 404 sales in 2015.  Again this year, the strong condo demand was held back by the amount of available inventory. In fact, the number of available units at the end of 2016 was only 37, which was down 46% from 68 the year prior. Attached housing showed a nice 12% increase from an average of $233,874 in 2015 to $262,334 in 2016 and the median price of $240,000 for condo/townhomes is up 17% from the $205,500 of 2015.  Our last peak was in 2007 when there were 430 condo/townhome units sold at the average price of $234,423. The single family sales in the subdivisions and rural areas immediately surrounding Bozeman increased from 465 units in 2015 to 489 in 2016, a 5% gain. This is a huge difference from the 171 sales in 2009, which was the 10 year low. The average sales price showed a 4% decrease from $541,259 in 2015 to $519,034 in 2016, as well as a 1% median price decline from $405,000 in 2015 to $400,000 in 2016.  This area contains price extremes of properties from entry level housing to the luxury second home market.  At year end, 133 properties were available for sale, which is a 24% decrease from the previous year's 175. Belgrade and the surrounding market showed a 12% increase with 299 single family homes sold in 2016 versus 268 in 2015.  However, the average sales price decreased by 3% from $292,644 in 2015 to $283,623 in 2016, and the median weighed in at $255,000.  Average prices have displayed much fluctuation over the last decade beginning at $287,473 in 2007, to a low of $192,779 in 2010, and coming back full circle in the current market. The condo/townhome market exhibited 10% growth with 91 sales in 2016 compared to 83 in 2015, with an average sales price up 15% to $165,642 in 2016 from $143,694 in 2015.  In the Belgrade area, the supply of homes available for sale remains very low with only 52 single family homes and 5 condo/townhomes available at the close of 2016. Within the Manhattan/Three Forks region, single family home sales decreased a slight 3% from 108 sales in 2015 to 105 in 2016.  Average sales price jumped 14% from $263,099 to $299,085 while the median increased 6% to $244,000. Big Sky, including Gallatin Canyon, showed minimal market decline with a 5% decrease in sales of single family homes sold from 66 in 2015 to 63 in 2016.  The average sales price increased from $1,291,839 in 2015 to $1,486.482 in 2016.  The median price edged from $1,037,500 to $1,050,000. Condo/townhome sales rebounded 32% to 173 sold units in 2016 versus 131 units in 2015.  There was an average price decrease from $455,133 in 2015 to $421,448 in 2016. Sales in both the Big Sky Mountain and Big Sky Meadow were at their highest points in 2014. The market in Livingston and surrounding Park County showed an 11% decrease in sales with 212 single family homes sold in 2016 compared to 239 in 2015.  Average sales price fell 2% from $302,810 in 2015 to $295,747 in 2016, with a median sales price of $240,000.  To break down the geographic market a bit, single family sales within the city limits peaked in 2015 at 153 home sales. In the Shields Valley, the high point was 16 sales in 2007, and in Paradise Valley the largest sales data also was in 2015 at 34 homes. Ennis and the Madison Valley were relatively flat comparing year to year.  The number of sales for single family homes decreased from 77 to 76 units, average prices declined by 2% from $353,964 to $348,552, and the median weighed in at $291,000 for 2016, up from $267,000 in 2015. There is continued interest in Ennis as a great place to retire and to purchase summer home getaways. What should we expect for 2017?  Here are a few predictions. We will continue to see the strong influence of investors in the Bozeman marketplace.  According to our company statistics, nearly 30% of our sales were to investors.  Rising interest rates will eventually impact the cost of mortgages to consumers.  Reduced inventories in almost every market will drive prices higher.  AND there appears to be strong buyer demand for the foreseeable future.