23 Jul 2018

Q2 2018 Y/Y Real Estate Market Update and Report

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Knoff Group Quarter 2 2018 Year over year market update and report

 

 

Single Family Homes

City of Bozeman is seeing the same reduction of inventory that is being seen in other markets – lack of quality inventory is pushing pricing higher and creating high buyer demand for well-priced properties. Median sales price has soared y/y – up 8% to $410,000. The first time that median sales price in Bozeman has broken the $400K mark. Sold volume is up almost 11% even though number of listings sold has stayed flat, showing a solid average towards higher priced properties.

In Bozeman areas outside city limits, inventory remains an issue. Median sales price has also jumped dramatically – up over 11% y/y. This median sales price number is almost cresting $500,000. List to sales price ratios have climbed, showing buyers are only discounting properties just over 1% off of original list price on average. Number of listings sold has climbed by 18% as new construction properties have been more common in the county.

Belgrade has experienced a dramatic shift upwards as new construction neighborhoods such as Ryen Glenn and Henson 3 have driven prices for existing homes higher. Median sales price has crested the $300K mark for the first time, jumping 12.68% y/y. List to sales price ratios have tightened as buyers have come within 1.75% of list price on sold pricing.

Manhattan has dropped in median sales price, number of properties sold and list to sales price ratios. Part of this has to do with more properties at the lower end of the spectrum selling during Quarter 2 (older homes, smaller homes) and part has to do with a slower new construction market as compared to Belgrade and Bozeman.

Three Forks has seen another big jump in median sales pricing – up 7.23%. The biggest note here is the number of properties sold – this has jumped a remarkable 170% over 2017 as new construction homes have become available and more properties are selling.

Big Sky is really cranking. Median sales pricing is up 20% to $1.675M. Listings sold has also increased 25% over 2017 as momentum builds. Days on market have also reduced to just about half a year on average.

Livingston has caught the attention of many buyers looking for more affordable options. The median sales price has jumped almost 28% to $285,000. Listings sold have dropped as quality inventory has been an issue. Days on market have risen slightly to just over 2 months on average.

Condos and Townhomes


City of Bozeman condo and townhome market has been white hot in Quarter 2 as buyers compete for ‘affordable’ product. However, there has been a trend, especially in downtown Bozeman, of condos and townhomes outpacing single family home sales in the multi-million dollar segment. Median sales price is up over 16.5% y/y and number of listings sold has dropped slightly as the market tightens. List to sales price ratios show that on average, buyers are paying 13% MORE than list price on average.

In Bozeman areas outside city limits, condos and townhomes have jumped in tandem with town properties -up almost 17.5% y/y. More product is being built in the county areas, and number of listings sold has doubled since 2017. Average days on market is a remarkable 8 days and list to sales price ratios show negligible discounting on list pricing.

Belgrade condos and townhomes have dropped slightly on median sales price as many smaller properties have sold in Q2. Number of listings sold has jumped almost 50% to 19 in Q2. List to sales price ratios tell a tale of a true seller’s market, with buyers paying on average 99.73% of list price.

Big Sky condos and townhomes have also taken off, with a 26% increase y/y in number of listings sold. Median sales price has crested $450,000 – up 25% y/y – and days on market continue to hover around 4.5 months.

Land

Bozeman City Limits has no new developments for single family homes on the radar and only a few phases left in existing neighborhoods – this is causing increasing tightening of the land market. Median sales prices jumped over 60% y/y, with median sitting at $130,000. Number of available properties has dropped 65%.

Outside Bozeman City Limits, options also remain slim in new subdivisions. Larger tracts of land are selling as well. Median sales price jumped 26% y/y to $177,500. Inventory is also an issue, with a 16% reduction in properties sold in comparison to 2017.

Belgrade has seen a large number of new lot options hit the market with the development of several new phases and new subdivisions. Median sales price has jumped 61% to $112,400. Average days on market is down 82% as quality product comes available.

Big Sky is seeing a large surge in land purchases as many buyers cannot find existing quality inventory and have decided to build instead. In addition, builders are purchasing lots on spec with more frequency. Median sales price has over doubled to $374,500. Days on market are down to just over 6 months on average. Buyers are discounting properties less between list and sales price.

Luxury

There has been a marked uptick in the luxury market in the Greater Bozeman and Greater Big Sky markets Q2 year over year and sales are as strong as they’ve ever been in this part of the market.

Bozeman has seen a surge of luxury level condos, townhomes and single homes close during Q2 2018 – more single family homes are closing over the $1M mark than previous years. Number of units sold has more than doubled, especially outside of Bozeman in the greater Bozeman area.

Big Sky has seen another jump in pricing and sales remain constant in the single family home realm. Condos have really jumped in this area of the market as new construction luxury inventory has come available.

 

All data is as of 7/15/2018 and was sourced from the Big Sky Country MLS.

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