2021 Bozeman Real Estate Market Forecast – Residential Sales History
The 2021 Bozeman Real Estate* Prediction
1. Below average availability ⇓ of residential property. 2. Continued increase in Bozeman home prices ⇑. 3. Significant new home construction ⇑ in Bozeman. 4. Slight increase in home mortgage rates ⇑.
| NEW LISTINGS* | Total New Listings | New Inside Bozeman | New Outside Bozeman |
| JAN. 2021 | 98 | 67 | 31 |
| OCT. 2020 | 154 | 103 | 51 |
| JULY 2020 | 205 | 130 | 75 |
| APRIL 2020 | 141 | 84 | 56 |
| JAN. 2020 | 145 | 104 | 41 |
The 2021 real estate prediction from the National Association of REALTORS® (NAR) chief economist: Lawrence Yun predicts home sales in 2021 ⇑ will rise 9 percent, prices for homes ⇑ will rise 3 percent, new-home sales⇑ will increase by a significant 23 percent, and home mortgage rates⇑ will rise 1/10 of 1 percent.
How the 2021 Bozeman Real Estate Forecast Is Progressing, March 2021
Chart 1: March 2021: “New Listings” (*homes, condos, townhomes) have been dropping from the June 2020 high of 244 to the present 60 in March 2021. Low “new listings” numbers are continuing into 2021, which is one reason why houses cost so much in Bozeman.
To be fair, winter usually finds fewer new listings than do the other 3 seasons, but the primary reason for low listings in Q1 2021 is most likely due to high home sales in 2020 and, apparently, fewer than normal Bozeman homeowners want to sell in Q1 2021, indicating a strong seller’s market in Bozeman in early 2021.
The spring and summer seasons will give us a more accurate indication as to whether this seller’s market will continue; more than likely people are moving to Bozeman and fewer and fewer desire to leave at this time.
Last year’s Bozeman real estate forecast never factored a Coronavirus pandemic into the equation; the pandemic triggered flight from big, complex cities to smaller, simpler cities like Bozeman.
Montana’s Hottest Real Estate Market – Bozeman Housing Boom 2021
And, no one imagined that Bozeman would have its greatest volume year ever, $1.08 billion in sales in 2020.
Low inventory continues in March 2021, with the number of homes, condos, and townhouses together at 230, down from the May 2020 high of 405, down from a mid-decade, May 2015, high of 555. So how much does a Bozeman home cost?
History, Bozeman Building Permits Issued
The most recent Bozeman building permit numbers come from December 2020: 328. Compare this to the city of Bozeman issuing 104 building permits in July 2020. Home construction and home remodeling is on the increase in Bozeman
| MONTH | AUGUST 2020 | OCTOBER 2020 | DECEMBER 2020 | 2021 |
| BUILDING PERMITS ⇑ | 139 | 231 | 328 | # Pending |
Chart 2: In March 2021, “average days on market” (ADOM) inside Bozeman is 38 and outside Bozeman, 58.
March 2021: inside Bozeman, ADOM steadily decreased from January to June 2020, increased into September 2020 and has been dropping ever since.
2020 Review: Covid-19 pushed us into a housing boom in Bozeman, which also precipitated a commercial real estate explosion with construction of apartment buildings, new hotels, new schools, retail projects.
Bozeman also continued addressing overdue road maintenance, street-building, and infrastructure expansion.
Chart 3: The average cost of a Bozeman home continues upward. In March 2021 the average cost is $748,000, $607,500 inside the city and $923,000 outside the city of Bozeman.
