We spend most of our days speaking with homeowners, construction tradespeople, contractors, and residential real estate developers. Because of this, we know that the Bozeman construction market is booming.
With some statistical help from Zillow, we can give you some numbers to support our “gut feel”. A note on statistics: we’re using the median values. Median values are when you take all of the Bozeman home values, sort them from lowest to highest, and pick the middle number. Median is different from the average, which is calculated by adding up all of the homes values and dividing by the number of homes. We believe that the median is a more accurate number. Averages can be skewed by a small number of very inexpensive or very expensive home values.
Low Mortgage Delinquency
Another indication of economic vitality is Bozeman’s very low mortgage delinquency rate of 0.1%. This is about one tenth of the national average of 1.1%
Median Home Value
At the time we are writing this blog, the median value of a home within the Bozeman city limits is $436,800. It is projected that the average value will increase by 6.8% in one year, after increasing 11% over the last 12 months. Since the median sale price per square foot is $224, we can assume that the median size of homes that have sold is 1,790, which is about the size of an average 3 bedroom, 2.5 bath house.
Not surprisingly, the median rent price is $1,900/month, which, assuming a 30-year mortgage and an interest rate of 4%, is a bit less than the 42,085 monthly mortgage payment on a median value home. Consulting another source, Rent Jungle, we see a different number, $1,341, which was a 14.32% increase from 2018.
New Construction and Remodeling
Checking with Construction Monitor, we can see the February 2019 building permit activity of 6 single family homes, tax-valued at $1.6 million, or $266,666/each, 2 duplex/twin home units at $744k, or $186k/each. Interestingly enough, the 5 permits that were granted for remodeling projects has a value of $849k, or $169k each. Those are some serious remodels!
Time on Market
For the residential housing sale market, as of January, 2019, homes were on the market an average of 116 days. This number fluctuates greatly during the year, as the average days on market in July of 2018 was 50 days.
It’s a good time to be in Bozeman supporting our architect, designer, and contracting partners.