Last Updated: 2016-04-18
Data for Single Family Homes in Bozeman(Areas 1 & 2)
Average Home List Price In Bozeman, MT Is Currently: $979,803 (trend: )
Median List Price In Bozeman, MT Is Currently: $642,500 (trend: )
Most Expensive Home Listed In Bozeman, MT Is Currently: $14,900,000 (trend: )
Least Expensive Home Listed In Bozeman, MT Is Currently: $250,000 (trend: )
Average Days On Market Of Homes Listed: 219 Days (trend: )
Median Days On Market Of Homes Listed: 100 Days (trend: )
Most Expensive Home Sold The Prior Week: $1,200,000 (trend: )
Least Expensive Home Sold The Prior Week: $274,900 (trend: )
Average Sold Price For The Prior Week: $527,900 (trend: )
Median Sold Price For The Prior Week: $362,400 (trend: )
Notes: Average and Median prices for homes listed jumped up this week. Average and Median Sold Prices both trended up. Average Days On Market is gradually trending up again. Additional supply is starting to come onto the market, but at slightly higher prices and inventory remains tight. We have also noticed a small dip in the Sale Price / Listing Price Ratio but that is beginning to trend up again.
On a Year To Date basis for Bozeman(zones 1 & 2) total Single Family Homes sold is 11% lower this year than last, and total dollars transacted is 11.2% lower this year than last.
Read our article on Bozeman, MT Home Price Trends.
|YEAR||DAYS ON MARKET
* Bozeman Areas 1 & 2 Single Family Homes
2015 had continued shortages of affordable inventory and high buyer demand. The supply of single family homes within Bozeman showed a small but welcome increase. At the end of 2015, there were 126 active residential properties listed for sale compared to 112 in 2014. Based on current supply and the number of homes sold in a given price range in the prior 12 months, there is no more than a 4.5 month supply of inventory in any of the price ranges reported under $500,000. (see Market Absorption Rate graph)
Within Bozeman city limits single family home sales increased 6%. There were 556 single family homes sold in 2015, compared to 523 in 2014. The average sales price for single family homes showed significant growth with a 15% increase to $382,033 in 2015 from $331,817 in 2014. The median sales price was $339,000 for single family homes, up 13% from $299,900 in 2014 and $205,500 for condo/townhomes, up 4% from the $197,000 of 2014.
There were 404 condo/town homes sold in 2015, compared to 399 sales in 2014. Strong condo demand was fueled by investors, with demand substantially exceeding available inventory in the market.
Heading into 2016 the declining trend in the Real Estate Absorption Rate indicated a shortage of supply in the market. This is not unusual as many home owners wait until spring to list their home for sale.
Absorption Rates are an important consideration when selling your home. Appraisers are required to use Absorption Rates to determine your homes current value. Therefore it is something that you will need to understand so you can make sure your home is being valued properly.
Secondly, you will need to know the absorption rate so you can determine how aggressively you will need to price your home, and to estimate how long it may take your home to sell given current inventory.
Real Estate Absorption Rates Explained: essentially the real estate absorption rate for a given market is a method to determine how fast homes are selling and weighs supply and demand of current housing inventory on the market. A declining figure indicates the inventory is decreasing as more homes are being sold than are coming onto the market. A rising absorption rate implies that there are more homes coming onto the market than there are buyers willing to buy at the market prices.
For instance: If 12 homes sold in the last 12 months that means that the market will absorb 1 house per month on average. If there are 10 homes currently on the market, there is a 10 month supply and so on.
¨ a 6 month(180 days) supply is considered a balanced market:
¨ less than a 6 month(180 days) supply is considered a sellers market, and
¨ more than a 6 month(180 days) supply is considered a buyers market.
This figure is pretty easy to determine. You’ll need to know two things – the total number of active listings (homes currently for sale) and the total number of homes that sold over a specific period of time. To get the absorption rate for your area, divide the total number of active listings by the average number of sales per month and you get the absorption rate.
Using Absorption Rate To Sell Your Home: Once absorption rate is figured you will have a good statistical estimate of how many months it will take to sell all the homes in your area at the current rate they are selling. Keep in mind this number is a snap shot and looks only at current inventory. The higher the number, the more aggressive you’ll have to be to get your home noticed and sold.
Armed with the absorption rate you can decide how aggressive you will need to be. If you have a high absorption rates and need to sell your home in the first few months you will truly need to have one of the “best deals” of all the competition…meaning best combination of location, condition and price. Also remember that as homes sell, news ones come on the market that may be priced more competitively, so keep track of what your competition is doing so you can act accordingly.
Category : Market Insights