Bozeman Real Estate Market Update – August 2024: A Shift Toward Stability

As we enter the latter half of 2024, Bozeman’s real estate market continues to make significant strides toward stabilization. After a few years of high demand and low inventory creating fierce competition for buyers, the market has finally leveled out. In August, we’re witnessing a shift toward more balanced conditions, offering both buyers and sellers a fairer playing field.

A Balanced Market Emerges

The Bozeman market is no longer defined by the extreme seller’s market we saw in 2021 and 2022. Inventory has steadily increased throughout 2024, allowing for more options and easing some of the pressure on buyers. Sellers, meanwhile, are seeing a shift in how homes are priced and sold—properties are no longer flying off the market within hours. Instead, listings are taking a more reasonable time to sell, averaging 45-60 days in August 2024.

Home Prices Stabilize

Home prices in Bozeman have begun to stabilize, with the steep appreciation we saw over the past few years starting to level off. While prices haven’t dropped drastically, the rate of appreciation has slowed considerably, providing some relief to buyers concerned about affordability. This trend is especially apparent in Bozeman’s suburban areas like Belgrade and Manhattan, where homes have become more accessible to a wider range of buyers.

For sellers, it’s important to recognize that the days of bidding wars driving prices up are mostly behind us. Accurately pricing homes is key to selling in this more stable environment, and properties that are priced right still attract serious buyers.

Interest Rates & Buyer Sentiment

Interest rates remain a focal point in 2024, with mortgage rates hovering around 6.5%—higher than what we saw during the height of the pandemic but still manageable for most buyers. Many current homeowners looking to upgrade are feeling the impact of higher rates compared to their existing mortgages, but first-time buyers and out-of-state buyers are continuing to show strong interest in the Bozeman market.

Out-of-state relocations, particularly from places like California, Texas, and Washington, remain a driving force in Bozeman’s market. Buyers are attracted not only to Montana’s outdoor lifestyle but also to its more stable real estate environment compared to larger metropolitan areas. Virtual showings and high-end video tours have become essential tools for buyers who can’t make the trip to Bozeman but want to explore their options from afar.

What to Expect Moving Forward

Looking ahead, Bozeman’s real estate market is likely to continue this trend of stabilization. As inventory rises and demand normalizes, we can expect a more predictable and balanced environment, with moderate price growth. This is great news for buyers who were previously priced out of the market, as well as for sellers who can still achieve favorable prices without the stress of overwhelming competition.

For anyone looking to enter the market—whether buying or selling—now is the time to take advantage of this newfound balance. With the right strategy, there’s plenty of opportunity for success in Bozeman’s real estate landscape in 2024.

If you’re considering buying or selling in Bozeman, reach out to me for personalized guidance and strategies that will help you make the most of the current market. Whether you’re upgrading, downsizing, or relocating, I’m here to help you every step of the way!