How is the real estate market? I’m asked that question almost every day and even though it’s a simple question, it’s a complicated one. Is the person asking a seller or a buyer – the market may feel different for each positions.

The real estate market in the greater Bozeman, Big Sky, and Livingston areas remained steady in Q2 2024 year over year – though inventory has been building across all areas and sectors.

The real estate market in SW Montana remains resilient even amidst the headwinds of higher interest rates and continued low inventory. Buyers continue to actively pursue properties – with increased days on market and price negotiations have become more common.  The market has balanced these forces and median sales price remains relatively stable.

Quarter 4 2023 found the SW Montana real estate market in a continued ‘leveling’ trend. The market felt as though it were stagnating at times – however, inventory remains scarce and while buyers are moving slower to offer – there has been a recent uptick in multiple offer situations.

2023 posted the least amount of volume and number of units sold in the past three years – however there was perhaps less of a marked shift in the market when comparing year over year than comparing by quarter.

Quarter 3 2023 was quite interesting from a numbers vs general market feel perspective – the market has felt like it has been moving at a slower pace but sales were steady – slightly below the volume of 2022 but not by much. Interest rates are having an impact on volume – especially in the lower priced segments of the market where buyers are more rate impacted.

The slowdown in median sales price appreciation in Southwest Montana for Single Family homes that we have observed since late 2022 spring and that continued throughout the remainder of 2022 and start of 2023 continues to dominate the data.

The slow down in median sales price appreciation and the decrease of sold units that we began to feel late last spring (and that continued throughout the remainder of 2022 and 2023), has finally started to show up in our data.

It seems that every news outlet is currently reporting on the fact that interest rates for home loans have gone up. And with a rise in interest rates the real estate market has slowed. But exactly how has it slowed Q4 2022 vs Q4 2021?

There was decent – i.e. more NORMAL (i.e. pre 2020 level) – price appreciation for 2022 year over year in most locations and for product that we track in southwestern Montana. An exception to this were areas and products that tend to harbor more entry level pricing.

It seems that every news outlet is currently reporting on the fact that interest rates for home loanshave gone up. And with a rise in interest rates the real estate market has slowed. But exactly how has it slowed?

By the numbers, Q2 2022 continues to look very strong in median sales price appreciation and lower days on market. However, there has been a significant jump in available inventory since January 2022.

Year over year Q1 2022 single family home median sales prices continued to leap from Q1 2021 in all areas of the market. City of Bozeman median sales price accelerated by the smallest margin at 19%. Big Sky jumped 32%. Belgrade jumped 49%. Greater Bozeman area jumped 68% and Livingston jumped $46% for median sales price year over year.

Single family home sales in Q4 2021 continued to be robust through the end of 2021, but the market was hamstrung by a lack of inventory. More listings left he market than came to market. As a result, listing sold count was reduced in all areas tracked.

Single Family homes sales in Q3 2021 have skyrocketed over Q3 2020. Q3 2020 is when much of the recovery from the Pandemic induced flattening of the market in Q2 2020 and there was a healthy jump over Q3 2019.

The Q2 2021 real estate market remained red hot for single family homes in the SW Montana.

Single family home sales were robust during Quarter 1 2021. In comparing this quarter to 2020, it is important to note that Q1 2020 was not yet considered ‘pandemic’ affected.