It is no secret 2020 was a year of unknowns. No one could have predicted how the pandemic would affect the housing market in Bozeman, or how we would find ourselves in such an extreme turnaround of current market conditions throughout the country. At the end of 2019, the median sales price of a single-family home in Bozeman was $452,500, and at the end of 2020 that has increased by 34.5% to $608,500. As we continue to look ahead to the upcoming year, experts have compiled a list of predictions to help ease buyers/sellers questions.
1. Mortgage rates will remain low In 2020, mortgage rates hit all-time lows 16 times! Continued low rates have set buyers up for significant long-term gains. These relatively low rates are projected to continue into 2021, however it is noted that even the slightest increase can vastly affect payments over the long term. So if you are looking to capitalize on these low rates, make sure you do so now!
2. Inventory will remain low In Bozeman, single family homes have seen a massive decline in inventory of -76.8% since November 2019. This decline is expected to roll into 2021 as we continue to see a lack of supply in and around Bozeman, and the country. Sellers are in the driver's seat and homes are selling quickly.
3. Home prices are appreciating Experts are predicting a more moderate price growth from last year, however they say it will continue to move in an upward direction through 2021. According to Keep Current Matters, "Knowing home values are increasing while mortgage rates are so low should help you feel confident that buying a home before prices rise even higher is a strong long-term investment".
4. Home prices will rise With high demand for homes in Bozeman, and very little inventory, it is no surprise we will see home prices continue to rise. Sellers definitely have the upper hand and buyers are eating it up just as fast as they hit the market. Just how far will prices rise? That we are unsure of. Some experts from Realtor.com predict another 5.7%, but as for the Bozeman area there just isn't a way of knowing. All we can safely predict is that prices will not decrease anytime soon.
We understand the market is brutal right now, and sellers are running the show. People all over the country are facing the same obstacles as we are. Overall, if you are planning to make a move, now is your time to shine! There is a huge opportunity to capitalize on right now before mortgage rates start to rise. Reach out to your trusted Broker, Tamara Williams, at 406.223.6823 to answer any questions or concerns you might have. She is here to help! Or, CLICK HERE to access a free home evaluation, and see what your home is currently worth today! Being connected to a Real Estate Agent has proven to help increase asking prices and get 10x more offers, as Agents can leverage their network around the globe. Let Tamara show you how!