2022 Q1 Market Update

Real Estate
April 9, 2022by Sarah Day
What has our market been doing so far in 2022? It’s been following a similar pattern as the previous year in that prices continue to increase, inventory continues to decrease and on average homes are selling for above asking price. Interest rates have finally increased as they’ve been threatening to do for sometime but we have yet to see what, if any, impact it’s going to have on our housing prices.

Residential Sales in the Gallatin Valley (2021 vs. 2022)
Average Sale Price: $696,365 vs. $1,030,366
Percent of List Price Received: 100.1% vs. 100.6%
Average Days on Market: 43 vs. 26
Total New Listings: 584 vs. 523
Total Closed Sales: 429 vs. 383
Current Active Listings: 197 vs. 154

Most notably in the numbers above is the fact that the average sales prices is over $1 million dollars (an almost 50% increase from this time last year). Remember, these figures include all of Gallatin County so some larger homes - including those in Big Sky, are going to bring this average up significantly. The median sales price in comparison has only increased 37% up to $710,000.

Average days on market has decreased to under one month. Interestingly though, median days on market is the exact same as last year at 5 days. This is not really surprising to see – this time of year single family homes, townhouses and condos closer to town centers (Bozeman, Belgrade etc.) seemingly go under contract overnight.

Why are total closed sales down then if days on market is decreasing? Because you’ll notice that new listings are down 10% and current active listings are down 22% from last year. There just isn’t enough inventory to satisfy buyer demand!

I understand that it’s hard to look at these numbers and believe that the market won’t go down anytime soon. However, I still don’t believe that we are nearing a significant market correction in the Gallatin Valley in the foreseeable future. Is that fact frustrating? Absolutely.

What I think we might see towards late summer is another plateauing of the market. If interest rates in fact increase and seasonal inventory comes onto the market, buyers are likely to be more discerning in their purchases. For buyers, the most important thing to keep in mind is the true cost of waiting.

Have questions or opinions on our current market? Let me know!
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