The Big Sky real estate market is truly unique. If you understand how secondary home markets operate, you may be able to forecast the future of Big Sky Real Estate. Where are Big Sky home prices and Montana home prices trending? That’s a very good question. Here is the Big Sky Real Estate Forecast for 2019.
First of all the Big Sky Real Estate Market is unlike any market that currently exists. Lately this market has seen a tremendous influx of cash and investments unlike any other resort area in modern history. The Yellowstone Club, and Spanish Peaks have fully emerged out of bankruptcy to become two of the largest and most successful real estate development in the nation. This has led to yet another robust cycle of cash unlike those that the local economy has seen in the past.
Big Sky’s housing market does not move at the same speed, rate, tenacity, or even in the same direction, as the stock and bond markets. At the time of this writing, it takes an average of 65 days to sell a home in Big Sky, even longer to close the transaction, and years for real pricing trends to effect change. In simple terms, it takes a long time for the national real estate market’s fear to travel deep into the Rocky Mountains.
Is Big Sky’s Housing Market immune?
Often, we refer to these real estate trends as cycles, or intervals, based on demand. Home prices tend to react to local forces first, then national and global economic forces come into play. Regional Montana history has shown that it takes on average 12-18 months for outside economic forces to arrive at the southern tip of Gallatin County, for better or worse. This makes the Big Sky Real Estate forecast difficult to predict.
Traditionally real estate bets are made on many types of proven economic indicators, government statistics, publications and most recently, those infamous tweets. Positive or negative forecasts can then enter into the equation causing them to shift rapidly. This arrival can bring either pain or riches to homeowners, investors, and the economy at large.
Big Sky Home Prices
The Big Sky Real Estate market has fully recovered above pre-recession values. Home prices in Big Sky have steadily grown at approximately 18% since the great recession. The growth rate even peaked in January of 2019, when the median home price in Big Sky reached $703,065. Until this fall, pricing trends had steadily continued to rise, and in some instances, the average home price rose at a rate of approximately $35,400 per quarter. At this rate, the average home could potentially double in cost during the course of 3 years.
The Big Sky Real Estate Forecast 12-18 Months
The Big Sky housing market has recently been stimulated by an incredible amount of cash from outside areas, and large capital gains from the stock market. The countless national articles naming Big Sky Montana the Place to be, have led to higher demand and higher prices. Numerous social media outlets like Instagram and Facebook are exposing more buyers and travelers to this once undiscovered area.
“Montana home prices began to rise markedly in the 1990s and then accelerated in the 2000s, Barkey said, inflating at an average of 7.4 percent a year until being taken down a notch by the 2008 recession, according to data from the Federal Housing Finance Agency. Since the end of the recession, Montana home prices have rebounded, rising at an average rate of 4.1 percent annually.“–Eric Deitric Missoula Current Montana Home Prices
What controls the Big Sky housing market?
This is the wild west and Montana is big on property rights. The only true control over home prices is the real estate market itself. A home is only worth what a ready and able buyer is willing to pay, and with the much cash entering the market the prices continue to rise with demand.
Most experienced real estate agents have little to no incentive to list properties above the market thresholds. Pricing a home or estate correctly requires a Big Sky Realtor or Broker to consider the existing information at hand and predict a home’s value. For most, this is not an exact science, however, we place great trust in the numbers. Historical sales data is only available in the highly guarded archives of the local REALTORS® Big Sky Country MLS. Montana has always been a non-disclosure state regarding home sales prices.
Does pricing the curve still work in 2019?
Big Sky home prices have been trending upwards for months, quarters and even years. Seasonal factors, like Montana’s harsh winter, have hardly slowed the market’s steady climb. These Big Sky home pricing trends have caused Realtors and sellers to consider the horizon, or the Big Blue-Sky, pricing. For the most part, this has worked.
Given the limited supply in the local real estate market a typical Big Sky home for sale has continued to average 65 days on market. Homes that are with high price tags have lasted sell without price corrections, or negotiations. Even into the spring of 2018 most of these high priced homes have eventually sold, with price adjustments now averaging approximately 97.6% of the original listing price.
Vail, Aspen, Park City, and Jackson Hole continue to flourish, will Big Sky?
You bet. Strategically, marketing homes for the rising price curve works well, until it doesn’t. That is if and when Big Sky home prices began to cool off. The higher-priced homes are not on the market for an extremely long time. At this time Big Sky Realtors and home sellers have to consider the trending price of homes recently sold and not the current average sales price.
The real estate markets in several other regional markets including Vail, Aspen, Park City, and Jackson Hole continue to rise. However none at the rate of Big Sky Montana. The rising trend of outdoor enthusiasts that had worked its way to the Rocky Mountain west continues to drive home prices higher. Buyers are ready, willing, or able to pay the higher asking price. The market continues to rise and remains the seller’s market. The Big Sky Real Estate trend continues to point higher.
What does a neutral housing market and the Big Sky Real Estate Forecast mean for your home values? Call bozehome + Co Real Estate today to get a market analysis at no cost.
Some data originates from Big Sky Country MLS, a subsidiary of the Gallatin Association of REALTORS®. InfoSparks