Affordable Housing For Sale Sign

A for-sale sign is posted in front of a housing complex Tuesday in Bozeman.

The median price of a home sold in Gallatin County in 2019 reached $400,000, up 6.2% from 2018’s median price of $377,500.

According to a report by Big Sky Multiple Listing Service, the price of homes has grown since 2018 in almost every part of the city. The exception is homes south of Kagy Boulevard, where prices shrunk by 2.7% during that time. However, prices in that area have still grown by 15.2% since 2015.

“[Last year] was a productive year in real estate with overall fewer units sold, but a steady growth in sales prices,” said ERA Landmark broker and owner Robyn Erlenbush in an email. “We have seen steady and consistent growth in almost all sectors of the real estate market and we do not expect the trajectory to slow down in 2020.”

The growth of home price depends on what kind of home is being sold and its location. Single family home prices grew 5.1% within the county since 2018 and townhouses and condo prices grew 8% in the same time. Homes sold in the area between Main Street and Kagy Boulevard grew by 1.6%, while homes in the area north of main and west of 19th Avenue grew by 8.5% in median price.

Belgrade saw a larger jump in price than any of the Bozeman areas. Since 2015, Belgrade’s median housing price has grown 46.6%, with 9.2% of that growth between 2018 and 2019.

There was also a larger jump in new construction in Belgrade than in other areas of the county. New construction rose by a little over 31% in Belgrade while in Bozeman it ranged from 13.4% to 30.3%. In the county overall, there was an 18.8% growth in new construction.

“New construction steadied over the past year in Bozeman and builders have sought opportunity in areas outside of Bozeman City Limits,” Erlenbush said.

Developers received 100.1% of the original price on newly constructed houses within the county, which Big Sky Country Multiple Listing Services director Mike Lake said could be the result of a “bidding war” between potential buyers.

“You’ve probably got a lot of other custom homes that maybe there is some battling back and forth between buyers, which could increase that sales price,” said Lake. “A majority of those homes are already pre-sold, so that price that they have is always going to be 100%.”

Lake said the percentage of growth fluctuates throughout the year in Montana. There are fewer listings this time of year than in the middle of the summer, he said, mostly because both buyers and sellers, understandingly, don’t want to load all of their belongings into a U-Haul during Montana’s unpredictable winter.

“Things will start to pick up right around April, skyrocket around July, taper off around October and things will start to dip into lower numbers right around November and December,” he said.

Melissa Loveridge can be reached at mloveridge@dailychronicle.com or at (406) 582-2651.

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