Bozeman Real Estate Market Report: Absorption Rates Dec 2011

How long will it take to sell my Bozeman, MT home?

In Realtors language, we call it the absorption rate.  We can analyze the sales data from the last 6 months in comparison to the number of homes that are still on the market and make an educated guess as to how long it may take homes in Bozeman Montana to sell.  The chart looks like this:

 Bozeman real estate market

What does the chart tell us?  If you have a home that has a list price of under $250,000, you stand a very good chance of selling it in under three months since we have sold 158 homes in that price range in the previous six months and currently only have 64 available to sell.  If you have a home that is priced between $351,000 and $400,000, you are looking at approximately three months of marketing time.

When we start to look at the luxury home market in Bozeman, we find the length of time to find a qualified buyer starts to be extended.  Over $400,000 and you could be looking at 18 months, although we do find the homes priced well in the price range can be sold in less than a year if they show well.  If you have a home currently priced above $700,000 you may be in for a longer wait, expecting an 18 to 36 month marketing time frame would not be out of line.

As a buyer, if you have the capacity to purchase a home on the upper end of the Bozeman real estate market, your selection should be fantastic and your negotiation position is strong.  Find your dream home and make an offer!  If you are purchasing your first home, or are in the affordable market, don’t hesitate when you find what you are looking for and expect to pay near asking price for your purchase.

Comment balloon 0 commentsJenifer Lower • December 28 2011 11:16AM