Bozeman’s Real Estate Market Report | 3rd Quarter 2014
Fall is in the air, with September giving way to October. It’s time to assess the real estate market through the end of the 3rd Quarter 2014.
It’s good, especially if you are selling a home
on the south side of Bozeman. As real estate continues
its upward trajectory, the south side has exploded.
These south side homes are averaging $1,483,976 per home. Platinum Properties is responsible for 22% of the south side’s sales volume, averaging 92% of asking to sold price while the rest of the market is averaging 90.5%.
The following report, prepared by Platinum Properties, is compiled from Southwest Montana Multiple Listing Service for areas 1 and 2 (inside and outside Bozeman’s City Limits), which encompasses the greater Bozeman Area. The report focuses on Bozeman’s 3rd Quarter real estate market for homes priced $750,000 and above and on non-commercial vacant land with 5 acre minimums.
Platinum Properties continues to dominate the upper-end home market in Bozeman. We have closed 24% of the total volume of sales $750,000 and above. We have participated in 5 of the 10 properties closing at $1.5 Million and above, accounting for 45% of the total volume of sales. In Bridger Canyon, Platinum Properties has posted 66% of the sales $1.5 Million and above in 2014. Our listings include 33% of properties priced $2 Million to $3 Million, and 50% of properties currently listed over $3 Million. We have the highest recorded sale for 2014.
The market continues to be focused and fluid, with buyers and sellers having to work together, through their Realtors, to bring a transaction to completion. It is neither a buyers’ nor a sellers’ market. It is a time for sellers to be thoughtful in their pricing if they really want a strong chance of selling, and for buyers to be willing to negotiate a fair price.
Inventory levels have remained fairly constant with 14 homes currently listed at $750,000 and above compared to 145 listings at the end of the 2nd Quarter. However, inventory levels are 11% higher today than a year ago, when 135 properties were listed. It is also noteworthy that, while inventory levels from 2nd Quarter 2014 to now have increased in the $750,000 to $1 Million range, they have decreased in the $1 Million to $4 Million range. There are 86 properties priced $1 Million and above, with Platinum Properties representing 20 of these fine properties.
The summer season did not bring the numbers of first-time-viewing buyers we had hoped for. We noticed a marked decrease in activity from the Spring in first-time-lookers. Real estate is definitely cyclic and unpredictable. A majority of the closed transactions this quarter were initiated in the 2nd Quarter. Generally, a buyer will visit 2 to 3 times prior to settling on a property. They are picky, with few buyers willing to undertake a major renovation. They arrive here having done their internet homework and are already focused on specific properties due to location, amenities, pricing, styling, and the size of the home.
pool of potential buyers decreases…rapidly.
Bridger Canyon accounted for the second highest number of sales, after the Southside, with 9 of the 36 closings to date, averaging 90.5% of asking to closing price, and contributing 31% of Bozeman’s total sales figure. Homes north of 1-90 came in 3rd, with 8 closings and 15% of the market share in volume.
Parcels of 5 to 10 acres are getting 98.5% of asking price, and are averaging 503 DOM.
20 to 40 acre parcels are averaging 114 DOM, while this increases to 343 DOM for parcels over 40 acres.
At Platinum Properties, we pride ourselves on client focused, concierge-level service, combined with professional advice, market knowledge, and honed negotiating skills. We
always welcome your comments and questions. Please contact us!