Final Market Statistics for 2007 in Bozeman

Another year is behind us and we are headed into the second quarter of 2008. Before we look at the first quarter of 2008, let's recap 2007. At the end of 2007 we saw no appreciate over 2006; however, we did not see a decline in appreciation overall in Gallatin Country for 2007 - just a flat market.

Average home prices in Gallatin County rose slightly from $433,981 in 2006 to $435,665 in 2007 while median prices fell from $310,000 in 2006 to $303,000 in 2007. The biggest change in 2007 was the amount of time listings are staying on the market, which rose by 23 days to an average of 88 days on the market prior to sale.

The following graph represents single-family homes in the city limits of Bozeman. The first is a graphical representation of the listing price of a home vs the sales price of a home, including average days on the market. In Bozeman, 2 bedroom homes are selling for 96% of asking with an average price of $278,891; 3 bedroom and 4 bedroom homes are selling for 97.5% of asking with an average price of $301,922 (3-bd) and $393,674 (4-bd); and 5+ bedroom homes are selling for 95% of asking price for an average price of $393,612. Two and 3 bedroom homes are selling in 69 to 73 days, whereas larger homes are selling in over 80 days.

The next graph also represents single-family homes within the city limits of Bozeman. This is a graphical representation of what type of home sold in relation to how many of that type was listed. Sixty-four percent of all 2 bedroom homes listed sold in 2007 compared with only 37% of all 3 bedroom homes that were listed. This information is very valuable when listing a home. It informs the seller about competition. From this information, it is clear that in order to win over buyers for a 3 bedroom home, the home needs to be in tip-top shape! Likewise, if a seller is holding onto a 2 bedroom home, now may just be the time to sell.

The numbers produced at the end of the year, quarter, or at any time help buyers and sellers make informed decisions. These numbers aid in dressing a house for success, determining listing price and selling time frames. Combine these numbers with absorption rates (discussed in an earlier BLOG) and you're definitely one step ahead of any competition.

For detailed information specific to your neighborhood, send your request to Connie@BozemanMontanaProperties.com.

Determining Absorption Rates

One of the most important bits of information to know when listing your house is absorption rate. Absorption rate reveals when all the homes on a market will sell, provided no other homes are added to the market. It is used to determine when a market will "sell out" of inventory. By knowing the absorption rate in your area while your home is listed will help you determine pricing, marketing, and other valuable information to make your home the most appealing and most likely to get a sale. It will also give the seller the most likely scenario as far as time-frame to sell.

To determine Absorption Rates:

1. # of listings currently on the market = x
2. # of listings that sold last month = y
3. y times 12 months = # sold per year
4. # sold per year divided by 52 weeks = # sold per week
5. x divided by # sold per week = absorption rate per week

In general, a seller's market results when the answer to #5 above is as low as possible. Conversely, a buyer's market exists when the absorption rates are high.

If you are about to list your home or your home is listed, ask your Realtor to tell you what the absorption rate is in your neighborhood.

For more information, send me an e-mail. I am always happy to help. Connie@BozemanMontanaProperties.com