Community News

The real estate market for 2013 met or exceeded all expectations that we had a year ago while on the quest for a return to normal.  This summary compares 2013 to 2012 sales information using the Southwest Montana Multiple Listing Service (SWMLS) as the source. 

Within the city of Bozeman, single-family home sales increased by 13%.  There were 489 single-family homes sold in 2013, compared to 431 in 2012.  There was a very minimal increase to 341 condo/ townhomes sold in 2013 which equaled 2% growth over the 334 sales in 2012.  This was mostly due to the lack of available attached housing for sale in this area.  The average sales prices for single-family homes also showed further recovery with a 6% increase to $310,099 in 2013 from $293,913 in 2012, while attached housing showed a nice 12% appreciation from an average of $167,510 in 2012 to $187,224 in 2013.  The median sales price was $277,710 for single-family homes, up 9% from $255,000 in 2012, and $174,900 for condo/ townhomes, up 15% from $152,200 in 2012.   

Last year the supply of single-family homes within Bozeman stabilized and actually increased a small 5% at year-end compared to the prior year.  At the end of 2013, there were 111 active residential properties listed for sale compared to 106 in 2012 and 279 at the end of 2007, which has long since been considered the peak.  Once again, homes that are priced under $350,000 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 1/2-month supply of inventory.  

The subdivisions and rural areas immediately surrounding Bozeman also had healthy growth with single-family sales up yet again from 305 units in 2012 to 350 in 2013, a 15% increase. The average sales price showed a 13% increase from $403,916 in 2012 to $454,893 in 2013, as well as a 9% median price jump from $329,900 in 2012 to $358,862 in 2013.  This area contains both price extremes of properties from entry-level housing to the luxury second home market. 

Belgrade and the surrounding market showed a very strong 27% increase with 190 single-family homes sold in 2012 versus 242 in 2013.  The average sales price increased by 19% from $199,093 in 2012 to $236,868 in 2013.  The condo/ townhome market has stayed relatively flat with 47 sales in 2013 compared to 48 in 2012, but with an average sales price up 24% to $107,492 in 2013 from $86,472 in 2012.  In the Belgrade area, the supply of homes available for sale remains very low with only 56 single-family homes and 12 condo/ townhomes available at the closing of 2013.

Within the Manhattan/ Three Forks region, single-family home sales increased 31% from 81 sales in 2012 to 106 in 2013.  The average sales price rose 16% from $209,692 to $243,750, while the median increased 21% to $218,555.    

Big Sky, including Gallatin Canyon and West Yellowstone, once again showed market gains with a 15% increase in sales of single-family homes sold from 73 in 2012 to 84 in 2013.  The average sales price increased from $790,777 in 2012 to $828,200 in 2013.  Condo/townhome sales rocketed 60% to 189 sold units in 2013 versus 118 units in 2012.  There was an average price increase from $310,831 in 2012 to $370,710 in 2013.  

The market in Livingston and surrounding Park County showed a 19% increase in sales with 191 single-family homes sold in 2013 compared to 160 in 2012.  The average sales price increased 36% from $202,603 in 2012 to $275,867 in 2013.  Condo/ townhome sales in Livingston fell from 17 to 16 units in 2013 with essentially a flat average price from $122,687 in 2013 versus $122,420.

Vacant land sales experienced another very positive year as a whole.  Bozeman sales within the city limits were up 14% from 202 sales in 2012 to 231 in 2013, with average sales prices increasing 42% from $66,296 to $93,888.  Rural Bozeman increased 5% from 199 to 208 sales units with an average sales price rising from $159,981 to $176,104.  Belgrade land sales climbed sharply from 15 to 76 parcels, a jump of 407%.  Yet the average price dropped from $166,186 to $129,613.  Manhattan and Three Forks increased 61% from 49 to 79 sales units with a small decrease in average price to $71,534 in 2013 from $77,372 the previous year.  The Big Sky area showed a 75% jump from 57 to 100 sales and an increase in average price from $271,682 to $297,292.  Park County saw the sales units increase from 36 to 47, but with the average price declining from $322,997 in 2012 to $152,288.  One point to keep in mind is that there are all types of acreage included in these totals from city lots to large parcels. 

So where do we go from here? All signs point to a strong sales year for 2014, with a renewed emphasis on new construction and increased sales prices. Our numbers of sales should keep pace with 2013 or increase slightly. Our local area, as well as the entire state of Montana, has all the variables present for a very positive year.  The resort and second home buyers have reappeared and may bring stabilization to higher price points for residential and vacant land.