Community News

I recently presented the 2013 year-end market summary with the anticipation that strong numbers would continue in terms of both sales and prices.  After compiling statistics for the first quarter of 2014, the number of sales and inches of snow tell their own story.  The information for this article was compiled from data reported to the Southwest Montana Multiple Listing Service (SWMLS). 

Within the Bozeman city limits, single-family home sales increased by 11% to 89 units comparing the first quarter of 2014 to 2013. The average sales price is $316,627 (up 5%), and the median is fairly stable at $275,000.  The available inventory increased by 7% to 106 active listings, assisted by robust new construction starts.  Condo/townhouse sales increased by 94% over 2013 to 66 units.  The available inventory fell to 53 units as of March 31, 2014, which was a 33% decrease from the year before.  This intuitively increased the average price by 27% to $213,583 and the median price by 28% to $196,950.  There are 87 condos pending at an average sales price of $221,141.  New projects are starting to re-appear on our landscape with perfect market timing as we continue to have very strong demand and little supply.  
 
The area immediately surrounding Bozeman fared well, especially in the average price category.  Single-family home sales increased by 8% to 54 units sold in the first quarter of 2014, and the number of active units declined by 9% to 205 properties.  However, the average sold price increased an additional 15% to $495,706, and the median price is up to $345,800.  
 
The Belgrade market area continued to post strong numbers with a 24% increase in single-family sales to 36 units; inventory is fairly stable at 73 homes; average price is up 16% to $233,473; and median price increased 18% to $216,250.  Condo/ townhouse sales declined by 1 unit and were down to only 6 available for sale at the end of last month.  The average sales price declined slightly to $105,101 and the median to $113,000.

Big Sky, including Gallatin Canyon and West Yellowstone, increased by 19% to 25 sales and is down 13% in active listings to 112. There are 16 homes pending at an average price of $1,173,925. The average sold price for the first quarter decreased 20% to $802,197 and the median by 12% to $475,000.  The decline in price is due in part to the strong buyer demand in the lower price ranges at Big Sky.  As we go to press, most of the single-family homes under $500,000 have sold.  Of particular interest is that many of these properties were purchased by Montana residents, and in particular Bozeman locals. 
 
The Big Sky condo/ townhome sales continued strong with a 58% increase to 38 units and a further decline in active inventory of 37% to 113 properties.  The average price stayed steady at $453,101 comparing 2013 to 2014. There are 21 pending condos at an average price of $597,390. 
 
If we take a look at our combined local market - Bozeman, rural Bozeman, Belgrade, and Manhattan/Three Forks - we find some interesting group dynamics. There are currently 429 homes on the market for sale with an average list price of $741,249.  During the first quarter, 195 homes sold at an average of $344,306, and there are currently 201 pending sales with an average sales price of $358,329.   Inventories are very low under $350,000, and we continue to see multiple offers in this price range.  
 
Livingston/ Park County’s sales remained steady at 25 units in the first quarter of 2014 and with a slight 3% increase in inventory up to 164 available units.  The average sales price decreased 29% to $184,513 which can mostly be attributed to the fact that 7 of the 25 sales were foreclosures that closed at $117,339 and under. On a very bright note, Livingston’s pending sales are very robust at 23 units averaging $502,360.  
 
All in all, the first quarter produced the nice gains we were anticipating.  While other parts of the nation blame bad weather and snow for their sluggish real estate sales, we experienced quite the contrary.  Historically ski visitors always help real estate sales. Lots of snow brings lots of skiers.  In fact, Bridger Bowl closed with 99 inches of snow, and Big Sky had over 100 inches on the upper mountain. The skier counts were also record-breaking, with 217,000 skier visits to Bridger for a new annual record. Big Sky has received more than 450,000 skier visits, a 22% increase over 2013.  Look for more good news to follow as we move into spring.