SW Montana Housing Q1 Real Estate Update
It’s been an excellent winter for skiers and snow lovers. Now, the signs of spring are everywhere. The days are longer, the trees are budding, and people are out. Trailhead lots fill with cyclists, hikers, and climbers, all shifting to warm-weather pursuits.
Here's your quick reminder to take advantage of the seasonal, car-only closures along 49 miles of road in Yellowstone National Park through mid-April, and Hyalite Road through May 15.
For those of you looking to squeeze in a few more days on the slopes, note that Bridger Bowl is closing April 13, while Big Sky's closing day is projected for April 27.
Quarter 1 Housing Update
Despite national uncertainty, Southwest Montana's first quarter has followed seasonal trends with a slow start to the year and a spike in pending homes and new inventory in March. Bozeman drives the market, influencing neighboring areas like Belgrade, Livingston, and Three Forks. Big Sky, however, has a market that operates more independently from the other areas in Gallatin and Park counties.
Home Sales
In the first quarter of 2025, 583 homes were sold on the Big Sky MLS, marking a 3.74% increase compared to Q1 2024.
There were 1,015 new listings during this period, down by 7 from last year but up 23.63% from 821 in Q4 2023.
Currently, 433 homes are under contract, showing a significant increase from January and February.
Home Prices
Big Sky MLS home prices decreased by 2.65% year over year, with a median sales price of $550,000.
Between Q1 2024 and Q1 2025, prices rose by 32.18% in Park County, while they remained stable in Gallatin County, with a slight decline of less than 1%.
The close price to list price ratio was 98.1% in Q1 2024 and 98% in Q1 2025, with the close to original price ratio about 2% lower.
This steady market suggests that it has adjusted to higher mortgage rates, which were above 7% at the start of the year and are currently at 6.85% for a 30-year fixed mortgage.
Days On Market
The median time to sell a home was 51 days, up 12 days from the same period in 2024 and 11 days from the previous quarter.
Median market times increased across all areas covered by this report. Homes sold the quickest in Bozeman city limits.
Currently, there are 7 months of inventory on the MLS, with 6 months in Gallatin County and 9 months in Park County. Bozeman, however, has the lowest months of inventory at just 4 months.
Conclusions
Overall, the market remains balanced. Despite interest rates approaching 7%, home values have retained their year-over-year gains. Longer days on market and current absorption rates are benefiting buyers. While we’re seeing modest growth in both home sales and prices, the luxury market and condos are the most impacted by a cooler housing environment. The luxury market tends to involve more discretionary purchases, which are more sensitive to uncertainty. Additionally, buyers generally prefer single-family homes when they can afford them, and prices for entry-level single-family homes have decreased. The market remains resilient and continues to show signs of stability.
As we move into the next quarter, I expect the usual late spring and early summer flurry of activity. We'll dive into the nuances in my Q2 market report. In the meantime, enjoy a fantastic April!
