April 13th, 2021

Bozeman Real Estate Forecast

Bozeman Real Estate Forecast

2021 Bozeman Real Estate Market Prediction – Residential Sales History

The 2021 Bozeman Real Estate Forecast Calls For:

1. Below average availability of residential property. 2. Continued increase in Bozeman home prices . 3. Significant new Bozeman home construction. 4. Slight increase in home mortgage rates ⇑.

NEW LISTINGS*Total New ListingsNew Inside BozemanNew Outside Bozeman
APR. 202115010050
JAN.  202014510441
OCT. 202015410351
JULY 202020513075
APR. 20201418457
Number New Listings: Bozeman Residential Property
Chart 1 – Number New Listings: Bozeman Homes, Condos, Townhouses

The 2021 U.S. 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, April 2021

Chart 1: April 2021: “New Listings” (*homes, condos, townhomes) began rising in January 2021, from a low of 96 to the present 145 in April 2021. Low new listings numbers have given over to increasing numbers in Q2 2021. This rise in new listings has not impacted why houses cost so much in Bozeman.

Though listing numbers are rising, there are fewer numbers in April compared to previous years, as chart 1 indicates. The primary reason for low listings all around but especially inside the city in Q1 2021 was most likely due to high home sales in 2020, and...

…apparently, fewer than normal Bozeman homeowners wanted to sell in Q1 2021. This trend of fewer listings appears to be continuing in Q2 2021.

Bozeman Average Days On Market – Residential Listings
Chart 2 – Bozeman Average Days On Market – Residential Listings

Late spring and summer will give us a more accurate indication as to whether our seller’s market will surpass 2020’s; more than likely people are moving to Bozeman and fewer and fewer desire to leave at this time.

Unless we have a national incident or interest rates climb, prices won’t be dropping in Bozeman for quite some 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.

Inventory continues to fall into Q2, April 2021, with the number of homes, condos, and townhouses together at 206, down from the May 2020 high of 405 and down from a mid-decade, May 2015, high of 555. So how much does a Bozeman home cost at this time?

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 (most recent)2021DECEMBER 2020NOVEMBER 2020OCTOBER 2020
BUILDING PERMITS # Pending8082133

Chart 2: In April 2021, average days on market (ADOM) inside Bozeman is 35 and outside Bozeman, 58.

Bozeman Real Estate Median Home Sales Prices
Chart 3 – Median Bozeman Home Sales Price

April 2021: inside Bozeman, ADOM has been dropping since early October 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, and more.

Bozeman also continued addressing overdue road maintenance, street-building, and infrastructure expansion. 

Chart 3: The median cost of a Bozeman home continues upward inn April 2021. The median home cost is $550,000 inside the city and $800,000 outside the city of Bozeman.

Bozeman Real Estate Forecast 2020Pre-2020 Bozeman Real Estate History Here



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