Midsummer Housing & Tax Update
Rodeos, outdoor concerts, rafting, and long days... summer in Montana is in full swing. And in our housing market, that means a summer flurry of activity.
Before we dive into the latest housing stats, here’s a quick update you may have missed: property tax reform is on the horizon for 2026. Primary homeowners and landlords can expect tax relief, while second-home owners and short-term rental properties will see increases. The Montana Free Press has helpful coverage here and here.
If you apply for the $400 principal residence property tax rebate, your home will automatically be enrolled in the new homestead exemption. Otherwise, the Department of Revenue will release an application form in 2026.
Also worth noting is the 2025 Gallatin Housing Report, which was released this past spring. It compares Gallatin County, Montana, and national trends, offering insights into our local economies, demographics, and housing markets.
SW Montana Housing Q2 Real Estate Update
Home sales across Southwest Montana have remained generally steady, with the typical seasonal uptick in pending sales that comes with summer. While inventory has increased, slightly more than this time last year, the market has shown signs of correction. Homes are taking longer to sell, and median prices have come down.
That said, well positioned homes are still attracting multiple offers. Sellers continue to hold an advantage in the more moderately priced segment of the market and in desirable locations.
Sellers are still benefiting from significant equity gains due to the historic appreciation of recent years, while buyers are now seeing more opportunities to submit lower offers and negotiate for concessions.
Home Sales
In the second quarter of 2025, 840 homes were sold on the Big Sky MLS,
marking a 1.75% decrease compared to Q2 2024, but a 44% increase from the 583 homes sold in Q1 2025.There were 1,861 new listings this period, up by 157 from last year, and up 83.35% from 1,015 in Q1 2024.
Currently, 469 homes are under contract. 149 were placed on contract in June, and 247 homes went under contract in July.
Home Prices
Big Sky MLS home prices decreased by 2.8% year over year, with a median sales price of $573,500, which is similar to last quarter's trend.
Between Q2 2024 and Q2 2025, prices decreased by 6.65% in Park County, an interesting difference when last report showed a 32.18% increase in Q1 2024 to '25. They also decreased in Gallatin County by 10.35%
The close price to list price ratio was 98.7% in Q2 2024 and 98.6% in Q2 2025, with the close to original price ratio about 2% lower.
A 30-year conventional mortgage is currently at 6.78%, and the new normal for rates is projected to hover around the mid-to-upper 6% range, with no expectation of dipping below 6%.
Days On Market
The median time to sell a home was 25 days, up 7 days from the same period in 2024 and down 26 days from the previous quarter.
As expected, since last quarter, median market times decreased across all areas covered by this report except for Big Sky since last quarter. Homes sold the quickest in Bozeman and Belgrade.
In June, there were six months of inventory on the MLS. From April through June, Gallatin County had five months or less, while Park County ranged from 8 to 14 months. Bozeman, however, had the lowest inventory, consistently staying below five months.
Conclusions
While the market remains relatively balanced, that means four to six months of inventory, there is a growing sense of hesitation. The best remedy for this environment would be a stable 6 percent interest rate and broader economic certainty.
It feels like we are on a sailboat with the sail luffing, not catching the wind and not moving at full speed. Sellers are reluctant to lower prices, while buyers are embracing their increased leverage. Everyone’s hands are on the rudder, trying to steer the market in their own direction.
For the third quarter, I expect similar trends to continue, with sales aligning with seasonal expectations. Unless something unexpected occurs, I anticipate that days on market will continue to rise, and median prices will stabilize or decline slightly.
Every market shift brings new opportunities. If you ever want to chat about the market, your neighborhood, or just get a better feel for what your next move might be, I’m always happy to connect. I’ll be back with another market update in October. Until then, enjoy the last glorious months of summer.
