Bozeman’s Real Estate Market Report | 2nd Quarter 2014
The summer season is just beginning in Bozeman and luxury real estate is already hot. The number of potential buyers cycling through Bozeman has not significantly increased, but their intent to buy and willingness to sign contracts is far stronger than it has been in the last 6 years. Sales for high end homes ($750,000 and above) Areas 1 & 2, Gallatin Valley, Bozeman continue to gain strength in the 2nd Quarter of 2014. A flurry of homes have gone “under contract” as this quarter ends. There are 16 pending sales of homes priced $750,000 and above. Of those, 10 are in the $750,000 to just under a Million price range. 3 of these properties are Block M, Downtown, and 3 are Black Bull, demonstrating buyers’ desire to simplify their lives with luxury properties requiring little maintenance and a built-in community. Also noteworthy is that 3 of the pendings are over $2 Million. That said, Bozeman remains a small market, with every sale being noteworthy and changing the statistics.
Here, then, is a snapshot of the Bozeman market at the end of the 2nd Quarter. This data is as accurate as it can be given the available stats. A number of transactions are “private” and do not show up on MLS at this time. Also, the current list price of a home is often times reduced from the original asking price, which skews the true list-to-closed ratio. Many of the homes priced over $1.5 Million have been on and off the market for years due to the limited number of buyers and the market collapse in 2007/2008. “Days on market” (DOM) in Bozeman for upper-end homes is generally “years on market.” (This still applies, “Days On Market” or should it be “Years On Market”)
Inventory Levels Have Increased!
Closed & Pending Transactions Have Increased!
Vacant land sales is gaining a good deal of traction, especially considering how flat it has been for the last years. A total of 798 acres sold by the end of the 2nd Quarter this year, with a total sales price of $9,583,785. The properties averaged 86% of their asking price, however, parcels of 40 acres and above only averaged 76% of their asking price.
At Platinum Properties, we pride ourselves on client focused, concierge-level service, combined with professional advice and honed negotiating skills. We are first and foremost experienced experts in the marketing and purchasing of high-end residential properties in Bozeman. We are very successful, due in no small part to always striving to improve our performance and standards. Until recently, we have stated “100% Client Satisfaction” in marketing materials. However, in these volatile times, we find it increasingly difficult in certain situations to meet seller expectations. A number of sellers are convinced their property is worth more than the current market will bear. Their property probably is worth what they think, but “worth” and “replacement costs” are not the driving market force. Yes, the market has dramatically improved, but it has not recovered to pre-2006 levels of pricing. Buyers today are knowledgeable, opinionated, and willing to walk away from a property they feel is over priced or does not meet their expectations and standards. Buyers know what fine homes are selling for on a price-per-square-foot, and they know present land values. They are not focused on future pricing, but on what they are willing to pay today. Both buyers and appraisers rely on comparable sales. Prices are slowly inching up from the market collapse, but high end properties in Bozeman are still 20% or more below the 2006 pricing. If you want to take advantage of this current market and sell your property, the first step is listing your property for today’s market.