Bozeman Real Estate Market Update: July 2025

What Buyers and Sellers Need to Know Right Now

We’re officially into the second half of 2025, and Bozeman’s real estate market continues to evolve. Last month’s data hinted at a shift, and July’s numbers confirmed it: buyers are more selective, pricing sensitivity is growing, and overpriced listings aren’t getting traction. If you're thinking about buying or selling real estate in Bozeman, here's what you need to know based on closed, expired, and canceled listings through July 31, 2025.

1. 💰 Pricing Trends: July vs. June vs. YTD

In June, we saw a rebound in the median sale price to $880,000 after May’s dip, but price per square foot declined, and homes only moved if priced strategically.

Here’s how July compares:

Metric	May 2025	June 2025	July 2025	YTD (Jan–July)
Median Sale Price	$853,814	$880,000	$860,000	$780,000
Median Price/Sq Ft	$378.47	$365.64	$377.76	$382.53
Median Days on Market	22 days	16 days	16 days	40 days

🔍 Key Takeaways:

• Pricing is softening overall when compared to the YTD median, even though July’s median sale price remained stable month-over-month.

• Homes are still moving quickly if priced right—holding steady at 16 days on market, the lowest of the year so far.

• Price per square foot rose slightly from June but still trended lower than earlier in the year, showing continued buyer sensitivity.

2. 🏠 Sold vs. Expired or Canceled Listings

Like June, July revealed that price point and initial strategy remain the biggest predictors of success.

📊 Success Rates by Price Segment (Jan–July):

Price Range	Common Outcome
<$550K	Strong buyer activity, quick closings
$550K–$950K	Highest conversion to closed sales
$1.2M–$1.7M	Slower pace, longer days on market
$1.7M+	Most vulnerable to expiration or cancellation

🧭 Neighborhood Trends:

• West Bozeman, Four Corners, and areas near MSU continue to see the most consistent performance under $950K.

• Luxury homes priced above $1.7M experienced elevated cancellation and expiration rates, even when marketed well—often due to starting too high or failing to adjust quickly.

3. ⚠️ The Real Impact of Overpricing

July reinforced what we saw in June: overpricing is one of the biggest mistakes a seller can make in this market.

📉 Here’s what the numbers tell us:

• Accurately priced homes typically sold within 2–3 weeks.

• Homes priced 8–15% over market value lingered on the market, needed price reductions, or were pulled altogether.

• Several properties that eventually sold did so below their final reduced list price—resulting in less profit than if they’d been priced correctly from the start.

📣 For Sellers:Just like in June, the message is clear: testing the market with a wishlist price is risky. Buyers are smart, inventory is up, and they won’t chase overpriced listings.

4. 🔥 Market Sweet Spots: What’s Selling Fast

The “sweet spots” from last month continue to dominate. These segments not only sell faster—they’re less likely to cancel or expire, and often receive strong interest in the first week on market.

Top Performing Segments:

Sweet Spot Segment	Why It’s Hot
🏠 Townhomes & Condos under $550K	Affordable, attractive to investors & first-time buyers
🏡 Single-Family Homes $675K–$950K	Ideal for relocating families, strong comps
🛏️ 3-bed, 2-bath homes (1,500–2,200 sf)	Balanced size and value = high demand

Neighborhoods Showing Movement:

• West Bozeman

• Near MSU

• Four Corners, especially sub-$500K inventory

These homes are priced competitively, show well, and align with what today’s buyers are actually looking for.

🧭 Final Thoughts: What This Means for Buyers & Sellers

If You’re Buying:

• You’ve got more selection, more negotiating room, and a solid shot at seller concessions.

• But well-priced, well-marketed homes are still going quickly, especially in the sweet spots.

If You’re Selling:

• Price it right from the start.

• Leverage strong presentation and local insight.

• And remember—overpricing is the biggest risk you can take in this market.

📲 Let’s Build Your Strategy

Want help figuring out where your home fits into the current Bozeman real estate market, or how to buy wisely without overpaying? I’ll help you break down what the data means for your specific situation, whether you're upgrading, right sizing, relocating, or investing. Let’s make sure your move is timed with the market—not against it.