1.     Bozeman’s Spring Market Begins on January 6!

Our Bozeman spring market kicks into action on January 6 every year. 

Why is January 6 our market's kickoff date? It seems that the 6th is just long enough into the new year for folks to recover from their holiday hangover (even if they didn’t drink, the Holidays are a social marathon) and focus on the steps needed to meet their goals for the upcoming year. Also, with the house back in order, the holiday decorations tucked away, and all the visitors gone, it is a focused time to introduce your property to the market!

2. Consider your timing: the bulk of your competition will enter the market in April.

A misconception about the spring market is that it starts in April. However, the homes sold in the spring were likely to be listed in January, with the January “new listings” closing in March or April. The March or April “new listings” will close from May to July!

Why do January listings typically close in the spring? 

In Bozeman, January properties traditionally take 25 days to procure a buyer or go “under contract.” From the initial offer date, BuySells with a lender take 30-60 days to close, and cash buyers can close faster. 

Working backward: the properties that closed in April were listed in January, put under contract in February, and closed in March or April.  The properties listed in April, which we’ve incorrectly defined as our “spring market” sales, close in June and July… which means those are summer sales! 

3.     Reduced Competition

By releasing your property to the market in January, you’ll, on average, compete with 39 other new listings. If you announced the property in April, you’d instead be competing with 66 other new listings or 169% more competition than the January inventory level!

On average, 36 of the 40 (including your property) new listings go under contract in January, and in April, 58 of the 67 new listings procure offers. While on the surface, that makes April seem a little more active because it appears like more homes are selling… remember, you would have more competition in April. 7% fewer new listings sold in April vs. the percentage of new listings consumed in January by the inventory-shorted market.

4.     Serious Buyers

January buyers are serious about purchasing a home and aren’t just “checking out the inventory.” 

January buyers are willing to go out in winter temperatures to view properties and are likely taking time out during the working day to facilitate that showing. With the winter solstice in December, January days are still very short. Buyers who are serious about buying want to view the whole property at their showing, not just the inside. That means that to maximize their viewing, they need daylight to see the exterior and are therefore out looking at real estate during daylight hours… or before 6 pm in January!

Daytime showings are easy to facilitate. 

As real estate professionals, we understand that selling your home can interrupt your home life. Making it to events, feeding your family, and keeping everyone's sleeping schedules can all be challenging when working around showings. With the winter light limitations, it is easier to have the house shown while the kids are in school, even if you work from home. (Who doesn’t love an opportunity for a fancy coffee break?) With the early sundown, it is also easier to keep your family sleeping schedules as you’ve likely buttoned the house up from showings for the day by 6 pm and had time to honor your traditional evening routine.

5.     Prices are Strong.

Our market peaked in September 2022 when our median sales price for a single-family home in the Bozeman City Limits was $869,000. An interesting highlight - the September 2022 market narrowly outperformed the February 2022 median of $868,000! 

This statistic is particularly fascinating as interest rates notably adjusted between February 2022 and September 2022, suggesting that the mortgage interest rate does not significantly affect Bozeman’s affluent market. As of December 29, 2022, our median sold price for a Bozeman single-family home is $860,000, still within 1% of our most robust market ever!

6.     The perfect time to Sell is when you are ready to buy!

The perfect time to buy or sell is when it is right for you. It has been my experience that the market will support you and facilitate smooth transitions when you make decisions based on good faith and focused on your family's needs.  

What do I mean by “good faith”? When you treat your home as a home first (not a bank account), my experience with clients is that they’ve always had the market work for them. Life can get a little dicey when your home is treated like a bank account. Remember, equity is real when it is realized in the market. Keep your payments where you are comfortable, and let your house serve your life. I understand this can be hard to achieve in Bozeman’s increasing market, and it is an excellent focus through the purchase process. 

As interest rates return to more traditional pricing, it is easy to have sticker shock. We were treated to unique market conditions between 2019-2022 with astonishingly low home interest rates. Those low prices helped drive home values, as buyers were uniquely positioned with unparalleled buying power. Remember, you can always refinance a house if the opportunity presents itself, but you can’t pay less for the property. 

7.     The right time to buy is when you are ready! 

Our Median Home Value Has Increased Nearly 300% in 10 years! 

In January 2012, the median single-family home price in the Bozeman City Limits was $267,500. In January 2022, the value of that same home is now $772,500. 

While that is fantastic news for the buyers who purchased in January of 2012, for the buyers who passed on the opportunity to purchase while waiting for the market conditions to improve, they may now be priced out of our market. Consider that as you evaluate the market today.

Your perfect market is the one in which you need or want to participate in the market.

I had had too many conversations with long-term Bozeman clients who lament that they are disappointed they didn’t purchase more real estate when the prices were lower. I even had one client tell me how she thought $89,000 for a northeast-side bungalow was insane in the 90s. That same property today is likely selling for $500,000-$1,000,000! Don’t miss the market waiting. If you are able to participate in the market, do it. Unlike other investments, real estate will never evaporate.