2023 Market Report and 2024 Predictions

2023 market report

GENERAL MARKET TRENDS

In 2023, the Gallatin Valley real estate market saw low inventory, high home prices, and elevated interest rates, which made homes less affordable for some buyers. While inventory remained limited, cautious buyers awaited potential price drops, while sellers listed at record highs. Towards the year's end, the market shifted, resulting in increased offers and property sales, maintaining a seller's market. Housing prices remained generally stable except for homes above $2,500,000, which saw a decline. Despite perceived impacts of high interest rates, the median days on the market in the Gallatin Valley remained under three weeks, indicating continued demand and the potential for rising prices if housing supply doesn't increase


TAKING A CLOSER LOOK 

Bozeman Single Family Homes

In the Bozeman area, single-family homes had a median selling price of $900,000 in 2023. This represents a slight uptick from the median selling price of $890,000 in 2022. Throughout the year, the Bozeman market typically maintained two to four months of inventory available for single-family homes. Generally, when a market's inventory exceeds six months, it transitions into a buyer's market. Our data reveals that for most single-family homes in Bozeman, 2023 remained a seller's market throughout the entire year.

Bozeman single family home 2023*Data provided by Big Sky MLS, updated 1.22.24


Bozeman Condos and Townhomes 

In 2023, the Bozeman Condo and Townhome market stood out as the only residential segment that experienced a slight decrease in home values over the entire twelve-month period. The median sales price for these properties settled at $528,950, a marginal decline from the median sales price of $530,000 in 2022. A closer examination of the data, depicted in the graphs below, reveals a notable shift in market dynamics. In November, there was an inventory surplus with over an eight-month supply of townhomes available. However, this inventory was absorbed by December, with over 26 closed sales to conclude the year.

2023 Market Report*Data provided by Big Sky MLS, updated 1.22.24

2023 Market Report

*Data provided by Big Sky MLS, updated 1.22.24


Belgrade Single Family Homes

In 2023, the Belgrade single-family home market experienced a modest uptick in home values, with a median sale price of $605,700, marking a 4.8% increase compared to the average sale price of $577,720 in 2022.

2023 Market Report

*Data provided by Big Sky MLS, updated 1.22.24


Belgrade Condos and Townhomes 

The Belgrade Condos and Townhomes segment experienced the most substantial increase in home values from 2022 to 2023. The year concluded with a median selling price of $467,400, reflecting a remarkable 14.6% surge compared to the median selling price of $407,750 in 2022. Notably, from March through September, the market grappled with an acute inventory shortage, consistently maintaining less than a two-month supply for over six months. This scarcity in supply propelled selling prices upward. Even as we saw an uptick in supply starting in October, the year concluded with a still-reduced three-month supply, indicating a continued seller's market trend.

2023*Data provided by Big Sky MLS, updated 1.22.24

2023

*Data provided by Big Sky MLS, updated 1.22.24


LAND - Gallatin Valley 

In 2022, the Gallatin Valley land market grappled with an oversupply, resulting in an excess of land inventory that extended to a 20-month supply by January 2023. This situation favored buyers, creating a buyer's market for land. The data indicates a significant shift in market dynamics due to the oversupply, reflected in the median time a parcel of land spent on the market, which increased to 102 days in 2023, up from just 36 days in the previous year. Despite the oversupply and the extended time on the market, land only saw a modest 1.8% decrease in the median sales price for 2023. By the end of the year, as shown below, the market still had approximately a 10-month supply of inventory available.

2023

*Data provided by Big Sky MLS, updated 1.22.24

2023


Big Question for Buyers -
Should You Wait for Market Adjustment?

Looking back at 2023, the real estate market remained stable, witnessing mostly level home values. Few areas experienced price reductions, mainly attributed to inventory levels for specific property types and price points. Nevertheless, home values remained robust throughout the year.

Heading into 2024, our inventory remains limited. In addition, inflation is tapering, and experts predict a downward trend in interest rates this year, with the Fed projecting three rate cuts. With these conditions, we project a modest increase in prices and anticipate more multiple offer situations in certain price points.


FINAL THOUGHTS

In the past year, our small office had the privilege of serving clients from across the United States, including Utah, New Mexico, Colorado, California, Texas, Illinois, Florida, Maryland, and North Carolina.

If you have worked with our team, you already know how important the data is to our advice and counsel. If you have not worked with us, we would be honored to help you navigate this market. With over 85 years of combined experience, our team has successfully guided more than 800 buyers and sellers. We work in a unique team brokerage to customize the experience for each buyer and seller. We are here to serve you and your referrals.


2023


Whether you're an investor, buyer, or seller, it's crucial to rely on experienced counsel to navigate this dynamic market. Our team is dedicated to providing the information you need to make informed decisions. Regardless of your real estate goals for 2024, please feel free to reach out to us for additional information or to schedule a complimentary home consultation.
Your success is our priority.


 

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