March 5th, 2021

How Much Do Homes Cost In Bozeman?

How Much Do Homes Cost In Bozeman?

So How Much Does A Bozeman Home Cost? And Why They’re So Expensive.

March 2021 – ⇑ Bozeman Houses Cost $748,000 (average) = $607,000 inside Bozeman and $923,000 outside Bozeman…not cheap.

YEARINSIDE BOZEMAN (average)OUTSIDE BOZEMAN (average)
2020$590,742$914,083
2019$511,934$734,514
2018$478,343$667,977
2017$425,895$601,053

The best method for figuring the true cost of a Bozeman home is to look at closed sales, which reflect the true “cost” of a Bozeman house.

How much do homes cost in Bozeman? Average price chart.
Chart 1: What’s the current average sales price for a Bozeman home?

Therefore, trying to determine what a Bozeman home is worth by looking at (last) listing price would be close but still skewed a bit, as the percent of list price is from 0% to 2% higher than sales price.

In the last few years, most Bozeman home closed sales prices have been from 98.5% to 100% of “last list” price (chart 3), indicating a strong market.

Chart 1: The average sales price, aka, cost of a Bozeman house inside the city in 2020 was $590,742, up $78,808 over 2019 and up $112,399 over 2018.

Taking a look outside the city, the average price for a Bozeman, Montana home in 2020 was $914,064, up $179,550 over 2019 and a staggering increase of $246,087 over 2018! Houses are expensive in Bozeman!

The average cost of a Bozeman house increased 21% (inside city) and 24% (outside city) in the last two years.

Chart 2: The median price for a Bozeman home inside the city in 2020 was $540,000, $460,000 in 2019, and $427,5000 in 2018, a 21% increase in only 2 years.

How much do homes cost in Bozeman? Median price chart.
Chart 2: What’s the current median sales price for Bozeman homes?

Outside the city, median price for a Bozeman home in 2020 was $681,151, up $127,151 over the previous year and a hefty increase of $166,151 over 2018, just 2 years ago!

These are significant market price increases in just one year for average and median Bozeman home sales prices.

Which Is Better, Average Price vs Median Price?

We’re dealing with Average and Median single-family Bozeman home costs (closed sales) here:

When looking at Bozeman home price statistics, “average” price tends to be the preferred statistical method.

“Average” price is found by simply adding all numbers and then dividing the sum of these numbers by the amount of these numbers.

“Average” price often depicts wild price swings, throwing off your search for a reasonable reflection of price.

“Median” price, on the other hand, is another common method. Used as as an numerical phrase, “median” signifies a “middle” price in a set of Bozeman house prices.

Median Percent of Last List Price For Bozeman Homes
Chart 3: What’s the median percent of (last) list price for Bozeman homes last month?

Frankly, using the “median” price results in a better depiction of the typical or the middle price than using “average” price.

To find “median” price, line up the prices in order of value, e.g., 5, 9, 15, 47, etc., and simply pick the middle number (if the number of numbers is odd, 5, 9, 15, 33, 47, take the average of the two middle numbers and use that single number to get your middle price.

So, what about the cost of a Bozeman luxury home?

In 2020, the sales price of a Bozeman home outside the city increased 3% more than the sales price of a home inside Bozeman.

It’s difficult to project future home prices in Bozeman, except to say that getting a handle on Covid-19 may slow the influx of new Bozeman home buyers and sellers.

BOZEMAN REAL ESTATE REPORTS

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Taunya Fagan

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