I want to start this blog by saying that not everyone has the flexibility to time a move or a real estate transaction. Sometimes, you just have to move and buy or sell your home; Sometimes you find the house of your dreams without really looking.
But for many people trying to decide whether it is time to move to a bigger home or to downsize into a smaller one, whether it is a good time to move to Bozeman or whether it is time to take advantage of favorable interest rates, some market knowledge is imperative to making an informed decision.
To take a quick temperature of the market, I look at Median home sales price, Days on Market, Inventory and Asking price ratio to Sales Price. There are lots more numbers out there but I find that watching these particular ones roll from month to month gives a pretty accurate picture of what to expect when listing a home for sale or looking to purchase a home.
Recent statistics about Gallatin County only –
Year to Date though September Single Family Median Sales Prices rose 6.3% over 2018.
(From 414K to 440K)
YTD through September Condo and Townhome Median Sales Price rose 8.5% over 2018
(From 295K to 320K)
YTD Days On Market (DOM) Single Family Home rose 6.9% over 2018 from 58 to 62 Days
YTD DOM Condo and Townhome is 53 days down from 64 days in 2018 or -17.2%
As one might expect, these DOM numbers are very different during the prime selling season of May – August where Single family homes sold in 37 Days and Condo/Townhomes sold in 36.
So one may ask how much negotiating of the prices is going on? Not much as both Single Family and Condo/Townhome are getting 98.7% of their asking price and Higher!
As we head into winter, Single family home inventory has already decreased by 7.5% but Condo Townhome has increased by 31% due to new developments coming on line in Bozeman and Belgrade.
Typically the next few months see a slow down in sales, median price stabilization but also lower inventory. After a very rapid fire summer in buying and selling, we are approaching a more balanced market but I would still expect that there is pent up demand because mortgage rates are still below 4% after being above 4% for a long time earlier this year and last year. We are getting tight on inventory of Single Family homes.
My advice to Buyers and Sellers of Single Family homes would be for Sellers to take advantage of the low choice on the market and for Buyers to take advantage of a slower market and really low interest rates. I am happy to discuss these statistics with you or dive in a little deeper.
Give me a call or send an email and let’s time your best move!