2022 Real Estate Recap

The old adage remains that the only thing constant in life is change and that proved to be true for the 2022 real estate market. What seemed like huge market swings in southwest Montana - say, increased inventory levels or increased days on the market - only felt dramatic because we had become accustomed to the unusual market conditions the previous 18 months. We’ve noticed a pause in buyer “frenzy” and wild sales prices. And that’s okay. We have to remind ourselves that homes selling in 48 hours at over asking price are not a healthy or sustainable market. It’s going to take some time to get used to this new feeling of homes “sitting on the market” with occasional price corrections, but nobody should panic. What the numbers actually show is current inventory is still below historically “normal” levels and median sales prices are still up. We’ll give you our high-level recap and then let the numbers show you the details.

Homes for Sale

Inventory levels across southwest Montana, though they may appear high while online browsing, are actually reflecting closer to what they were in 2020. Buyer demand is still high, but inventory continues to remain low and the change in interest rates has affected a buyer’s ability to finance. This is reflected in the declining number of sales units. 

The Mid-Year Shift

When mortgage rates started to increase in the spring, many buyers were already locked in on really low-interest rates, which continued to drive sales through the first half of the year. The second half of 2022 is when we started to see a leveling or decline in median sales price from the previous six months. However, most of the market in southwest Montana is still seeing an overall increase in median sales price year over year. It’s the speed at which prices are escalating that is tapering off. 

Local Expertise

We’ve broken out all of the data in our market report for you to flip through below. You’ll see that Bozeman, Belgrade, Manhattan, Three Forks, Big Sky, Livingston, and Ennis all have different nuances to the data and this is mainly due to the product mix and market size across these areas. Know that every market and every home is different. Our team is here to help you navigate through your individual needs and we’re only a call, click or text away.

2022 Market Year-End Review