Home prices in Gallatin County are down, but prospective buyers could still end up paying more, RE/MAX Realty Group in Bozeman told MTN News on Wednesday.
Median home prices in Gallatin County decreased 21.1% from $868,000 in February 2022 to $684,682 last month.
“Interest rates are roughly 2% higher than they were this time last year, and at that point in time, people were starting to pull back and panic about seeing something with a four in front of it,” said Caroline Roy, Loan Officer & Branch Manager for GoPrime Mortgage. “So certainly, seeing something with a six is giving people a little anxiety.”
From too many people looking to buy homes and not enough houses, to painful interest rates and building materials with inflated price tags, there are many reasons prospective homeowners in Bozeman are putting their American dreams on hold.
"It's nothing like last year. Last year, I was writing multiple offers for each individual buyer just to get them into something- that is not the case today. You're probably not going to have to write 10 offers to get a house at this point,” said Joanna Harper, a broker with RE/MAX Realty Group.
Harper added that in February 2022, single-family homes stayed on the market for a median of five days, versus last month which stood at a median of 22 days.
Last month, the Gallatin Association of Realtors saw a 30 percent drop in new listings.
“The competition is less fierce, and so, you're gonna get your home and that's the premium, even if the rate is not where you'd hope it would be,” Roy explained. "And homeowners can adjust later if needed."
GoPrime Mortgage said it anticipates rates will come down, and “there's gonna be a lot of people lining up to refinance. So, they get to keep the same wonderful house, but get a better rate to pay off that loan.”
Mortgage rates have also trended down over the past several weeks, Roy detailed.
“So, if you're looking for a condo, now is a great time to get a deal compared to last year, because there are fewer buyers, especially in that entry price point,” Harper said.
GoPrime Mortgage recommended people pay off all of their debts, which could help them afford monthly payments.