Intro to Bozeman

Predictions for 2021 Economy and Real Estate Market

by Liz Nitz

Predictions for 2021 Economy and Real Estate Market

Matthew Gardner, the Windermere Real Estate Company, gave our company his thoughts on the Economy and the Real Estate Market this week.  The summary of his talk is below:

  1. Currently the economy is declining a bit and as expected due to Covid. We have recently seen declining jobs numbers which funnels to declining spending.  However, Matthew predicts that once the vaccine really hits some large numbers of distribution, we will see people heading back to work and spending will then increase. Both increased jobs and spending are good things for our economy overall.
  2. The move from larger cities to the suburbs and smaller cities is real. However, Matthew does think that once the vaccine has been distributed that many workers will only part time work from home and then also part time go into the office.  For this reason, he sees many people not moving too far away from their primary place of employment.
  3. In the apartment market, we will see declining rents in the larger cities as people leave the city and as they can afford to purchase homes outside of the cities. Also, the larger cities may be a bit overbuilt this year as 400,000 new units are supposed to come on line.  Developers will probably turn their attention to building in smaller cities as a result.
  4. Luxury housing performed incredibly and surprisingly well this past year. This segment is expected to do well again in 2021.  Reasons are that jumbo interest are very low and with the increased flexibility of work locale, people can choose to get more value and also move to locations with lower tax rates.  Matthew also thinks we will have more foreign buyers in 2021.
  5. Zoning overall will see more commitment to increased land being sold to developers who will build affordable housing. Many cities and town are facing a pretty substantial decrease in tax revenue and they cannot allow employers to leave because workers can’t afford housing.
  6. Adaptive reuse will gain some traction particularly in hotels, malls and strip malls being converted to residential or mixed-use developments. Matthew thinks that office buildings are tougher to reuse due to core construction and the difficulty of dealing with additional infrastructure such as plumbing needed for residential.
  7. Home features that are now important in the post Covid world – more space, separate offices, dedicated zoom space, high speed internet. As a result, new home sizes will be growing.
  8. Mortgage forebearances. These are not going to turn into foreclosures at a super high rate.  Many (maybe most) people will have enough equity in their homes that they can sell if they have to and keep their equity. In some markets, particularly larger cities, the condo market may be the exception to this.
  9. Mortgage rates are incredibly low right now. We have had 16 record lows over the past year.  Matthew thinks that they are about as low as they are going to get and as 2021 wears on, they will rise but conventional rates shouldn’t go much higher than 3.1%.
  10. In 2021, Matthew sees home sales continuing to increase (about 7.5% is his prediction) but home prices will increase 4.1%. He thinks we will have more inventory which will help to keep prices from skyrocketing.  He sees a large amount of first time home buyers entering the market, particularly if Biden is successful in passing the first time home buyer credit as part of his economic package.

Summer Programs for Kids in Bozeman

Windermere is very fortunate to have a full time, renowned economist on staff.  Matthew is often asked his opinions from economic and government leaders.  I trust his words.

If you’d like more information or to discuss further, please reach out to me at 406 499 4218 or liz@windermere.com.

Share

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Table of Contents
Bozeman median home value

Increase Your Home's Value

It's a hot market in Bozeman. Don't leave money on the table!

In As Little As A Day

Grab these 7 tips to increase your home's value today!
Get My Guide
Featured Properties
No Comments

Post A Comment

New Real Estate Trends in Bozeman

New Real Estate Trends in Bozeman

The pandemic and remote work are resulting in new real estate trends. We saw a big influx of out-of-town buyers in 2020 that was mainly fueled by the pandemic. I think what is driving home-buying decisions is interesting and we are seeing some new real estate trends

Read More →
What to Expect in Bozeman Real Estate in 2021

What to Expect in Bozeman Real Estate in 2021

Bozeman real estate in 2021 is currently in a seller’s market. From 2019 to 2020, the median sales price increased from *$399,900 to $420,000 and inventory dipped to 0.4 months supply. My prediction is that it’s not going to get any better or less competitive

Read More →
New on the MLS

Latest Listings

The following homes listed below were just listed in the last 7 days. This seller’s market is hot so we keep a close eye on the latest inventory. Subscribe below for instant updates of your ideal criteria.

Sort Option
  • Listing ID
  • Built up Area
  • Price
  • Pictures
  • Add date
  • Featured
Grid
List
Map
RSS

1582 New Holland Way, Bozeman, Montana 59715

1582 New Holland Way, Bozeman, Montana 59715

3Bedroom(s)
2Bathroom(s)
0.16Acre
1,685Sqft
Stunning brand-new to be built, home, located in a convenient in town location. Walking distance to the Gallatin Regional Park, Dinosaur Playground, Dog Park and ponds. Homes feature shaker cabinets, quartz counters, luxury vinyl plank flooring. 8 foot doors throughout! A generous Master suite with huge walk-in shower, dual vanities and spacious closet. Good size living, dining, kitchen areas.
$487,500

1560 New Holland Drive, Bozeman, Montana 59715

1560 New Holland Drive, Bozeman, Montana 59715

3Bedroom(s)
2Bathroom(s)
0.12Acre
2,015Sqft
Stunning brand-new home to be built, located in a convenient in town location. Walking distance to the Gallatin regional park and Dinosaur playground. Home will feature shaker cabinets, quartz counters, luxury vinyl plank flooring. Main level has a 1/2 bath, living, dining, kitchen. Stainless appliances, enormous garage.
$525,951

434 Black Bull Trail B, Bozeman, Montana 59718

434 Black Bull Trail B, Bozeman, Montana 59718

1Bedroom(s)
1Bathroom(s)
776Sqft
Easy lock & leave lifestyle in one of Bozeman's most sought after communities! Find your piece of Montana in these brand new 1 bedroom condos, located steps from all of Black Bull's incredible amenities. These units are single level with a spacious bedroom and full luxury bathroom. Exquisite finishes are included throughout.
$359,000

402 Meriwether Avenue, Bozeman, Montana 59715

402 Meriwether Avenue, Bozeman, Montana 59715

3Bedroom(s)
3Bathroom(s)
0.13Acre
1,864Sqft
This townhome is in the heart of Bozeman is estimated to begin construction in November 2020. Units will include modern finishes such as LVP flooring, stainless appliances, granite counter tops, decks for entertaining, and a full landscape package. Interior units are 1,588 sq. ft. with 2-bedroom, 2-baths with single attached garages. Exterior units are 1,864 sq.
$435,000

432 Meriwether Avenue, Bozeman, Montana 59715

432 Meriwether Avenue, Bozeman, Montana 59715

3Bedroom(s)
3Bathroom(s)
0.10Acre
1,864Sqft
This townhome is in the heart of Bozeman is estimated to begin construction in November 2020. Units will include modern finishes such as LVP flooring, stainless appliances, granite counter tops, decks for entertaining, and a full landscape package. Interior units are 1,588 sq. ft. with 2-bedroom, 2-1/2 baths with single attached garages. Exterior units are 1,864 sq.
$435,000

67 Wickwire Way, Bozeman, Montana 59718

67 Wickwire Way, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.19Acre
2,067Sqft
Settle into new construction at Black Bull. Located steps away from club amenities and backing to open space, "The Bungalow" offers single level living at its finest. The Bungalow is just over 2,000 sq feet, with 3 beds and 2.5 bathrooms.
$849,000

1484 Stewart Loop, Bozeman, Montana 59718

1484 Stewart Loop, Bozeman, Montana 59718

4Bedroom(s)
3Bathroom(s)
2.26Acre
3,181Sqft
Welcome to Sunrise Homes in Gallatin Heights subdivision, located in beautiful Bozeman, Montana! This 3,181 sqft home is absolutely stunning! With 4 bedrooms, a flex room that can be used as an office or study with double glass doors just off the entrance, 3.
$794,804

1704 Lincoln Street C1, Bozeman, Montana 59715

1704 Lincoln Street C1, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
1,041Sqft
Sweeping views of the Bridger Mountains from this brand new condo complex, and incredibly well located; just a short walk from the Bozeman Fieldhouse. These new construction condos boast dual bedroom ensuite. Bathroom shower and floor are tiled, and shower doors are glass.
$339,500

1704 Lincoln Street B8, Bozeman, Montana 59715

1704 Lincoln Street B8, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
1,041Sqft
Sweeping views of the Bridger Mountains from this brand new condo complex, and incredibly well located; just a short walk from the Bozeman Fieldhouse. These new construction condos boast dual bedroom ensuite. Bathroom shower and floor are tiled, and shower doors are glass.
$339,500
171 Results returned.Per Page

home

Let me help
you find yours.

Windermere Downtown logo Bozeman Real Estate Agent Liz Nitz

Windermere Downtown Bozeman

135 E Main St.

Bozeman, MT 59715

MLS Realtor logo Bozeman Real Estate Agent Liz Nitz
Equal Housing Opportunity Bozeman Real Estate Agent Liz Nitz
Copyright © 2020 by Liz Nitz. All rights reserved. View our Privacy Policy.
Made with ♡ by Pageperfect.
Play Video

Get In Touch

Start the Conversation

Play Video

Don't leave money on the table

Increase Your Home's Value in A Day

Get Dynamic Updates

Save a custom search on this page & I'll email you instantly when a new listing matches the criteria.