Outlook for the Gallatin Valley (Bozeman, Belgrade, Big Sky, and more)

Overview

Even through the tough times the last couple of years, we still saw very healthy buyer activity in the lower end of the market (up to about $220,000.00).  This healthy activity is now steadily moving the middle market up to $500,000.00.

It appears we hit the price bottom a while back.  But prices stagnated until buyer demand came to meet it.   Rates have been and continue to be at near historic lows.  Check this link for the latest http://finance.yahoo.com/.  Thirty year rates are in the mid 3’s and fifteen year rates are below 3%.  Prices are creeping up in both Bozeman and Belgrade and inventory is shrinking.   Buyers are buying and the buying situation in the valley has become very competitive for well priced properties, especially at price points below $220,000.

Example and General Note

I worked with a buyer recently who wants to purchase a 3 – 4 bedroom condo in Bozeman.  We found two great values, both bank owneds and got in early with offers.  Even so, both offers resulted in  and multiple counters – the market is very competitive now not only with single family homes but also condos and townhomes.  At last check, there were only 20 condos available in Bozeman up to $170,000.00!  For this same period, there are now 20 condos pending – as many pending as are available – wow!

There are at least six builders that have been putting up semi-custom spec homes in Bozeman at a phenomenal rate.  They pre-sell their current build by using an already finished unit as a model.  In almost all cases, the ‘model’ is already sold.   A majority of the product to date has been single family homes – mainly 3 beds or 3 beds with bonus room – and they can’t build them quickly enough.  They are also starting to build condos and townhouses as they have seen demand increase for this product.  One interesting phenomenon among these builders is watching their base prices creep from the low $200,000.00’s for single family homes.  Some are now building ‘specs’ in excess of $400,000.00’.  Features and finishes have also improved over past spec builds. 

Stats

For those of you that are numbers junkies, please follow this link for a full update on the entire valley – we post statistics at our Gallatin Association of Realtors web site quarterly.   Here is the link http://gallatinrealtors.com/News_and_Events/Market_Statistics

For a few quick stats on the market, read on…  

The following are comparisons for the first six months of 2012 vs. 2011

Summary of chart – Bozeman, Belgrade, Big Sky and Three Forks all sold more units in the first six months of 2012 vs. 2011.  The only city down was Manhattan.  Median price improved in Bozeman, Belgrade and Big Sky.    Days on market are DOWN (this is good) in Bozeman, Belgrade, Big Sky and Manhattan.

Summary – the Gallatin Valley is trending up in almost every area, rates are holding low and prices are starting to trend up.  If you have been thinking about investing in these markets, I believe the time is now. 

Call, e-mail or text me.  I look forward to serving you