2015 was a year of stabilization in the Big Sky real estate market. After a significant increase in units sold in 2013 and an increase in gross sales volume in 2014, the market leveled in 2015. In examining sales history closely, we see that 2013 was representative of a soft sellers’ market marked by an increase in units sold from previous years. 2014 showed an increase in gross sales volume although units sold decreased, largely due to strong activity in new, high end product sales. The impressive number of high end sales in 2014 depleted the high end inventory available in 2015 which in turn resulted in a slightly lower gross sales volume in 2015.
Inventory in 2015 showed 430 properties available, as compared to 450 properties during the same time frame in 2014. Our current absorption rates are another indicator of stabilization within the real estate market. Assuming these rates are maintained, in conjunction with new high end inventory availability, we anticipate 2016 gross sales volume eclipsing that of the last two years.
*All numbers/stats referenced for 2015 are YTD from January 1-November 22. All information was obtained by the Southwest Montana MLS and is deemed to be accurate but is not guaranteed. Please contact a PureWest | Christie’s International Sales Associate for information.
While the number of closings decreased in 2014 to 328 (when compared to 350 in 2013), the average sales price increased to $749,691 from $473,611 in 2013. This explains the 2014 surge in real estate sales volume, which grew significantly to $245,898,813 from $165,763,897 in 2013. In fact, average sales price, median sales price, and overall gross sales volume all climbed in 2014. The Median Sales price rose from $300,000 in 2013 to $378,772 in 2014, while the percentage of distressed sales fell from 13% in 2013 to only 5% in 2014.
Inventory levels were low in 2014, with only 415 properties currently on the market in the Big Sky area (compare this to a high of 842 in 2009). Current absorption rates are indicative of a correction in the market’s supply and demand and if maintained, should continue to push pricing higher through 2015.
The 2014 market exhibited an increase in sales volume and average sales price in all categories including vacant land, homes and condominiums. As the market continues to expand, developers are entering back into the market. This winter, Moonlight’s newest neighborhood, Silvertip, was released to the market. In addition, Big Sky Resort plans to release a limited number of Montana Club Chalets in the coming months.
PureWest | Christie’s International Real Estate is the listing agent for both of these exciting projects, so be sure to contact us for further information.
Several early season storms have provided Big Sky Resort with excellent ski conditions and helped make the Christmas Holiday season one for the records. Up over 16% in skier visits from the previous record breaking year, with Mountain Sports and the Basecamp Kid’s and Teen’s camps seeing their busiest week as well. Big Sky also saw its biggest skier day in history with nearly 6,000 skiers, with an average of over 4,800 skiers and riders during the week between Christmas and New Year’s Holidays. Across the Boyne family of resorts nationwide, the holiday season produced record attendance and revenue numbers.Benefiting from that record traffic, Powder Ridge Phase 5 showed significant progress as well. Cabin nos. 28 and 29, both Homestead floor plans, were completed and closed to the delight of their new owners. Meanwhile, new contracts have been accepted on Cabins 30 and 31, also Homestead floor plans. Construction has proceeded right on schedule and Cabins 36 and 32 are poised to be completed and closed during February. In total, six cabins will be completed and closed before the end of ski season. Ground breaking will take place on two more, just as soon as spring conditions return to Lone Mountain. In just one year since the project was launched it is fifty percent sold.
Category : Market Insights