Stacy Ossorio / Engel & Völkers
The state of real estate, winter 2018-2019
Volumes have been said or written recently about the community of Big Sky. The main attraction, and the reason that adventurers and travelers have been flocking to Big Sky for more than 40 years in the first place, remains the same: the exceptional, expansive natural beauty and unmatched access to all of the wonders that define this area.
In recent years, Big Sky has become a busy place and several new visitors and residents are taking advantage of the many wonderful real estate opportunities that are available.
Let’s take a look at our current market:
This past year there were an average of 338 listed properties per month for sale in Big Sky, down significantly from 2107, when the average number of listed properties was 445 per month. Year to date in 2018—not including December—there have been 359 closed sales reported in the greater Big Sky Area. That’s up from 322 sales during January to November in 2017. The average closed price to listing price was 97.1 percent.
2018 year-to-date sales volume is $312,660,331, averaging $28,423,666 per month, with the average value of listed properties at $426,316,029.
In all of 2017, sales volume was $289,840,313, with the average value of listed properties at $578,146,692.
The statistics show that while the amount and value of available inventory is lower than last year, the sales volume for the past 11 months is approximately 8 percent higher than 2017.
The total number of properties in 2017 that sold for under $500,000 was 222 out of the 394 reported; 83 properties sold for prices between $500,000 and $1,000,000 and 89 properties sold over $1,000,000.
The median price of property in Big Sky has increased over the years as well. (The median equals 1/2 of sales over and 1/2 under). In 2017, it was$417,000 and so far in 2018, the median price is $568,500.
The average sales price of a property listed in Big Sky in 2017 was $764,625 and in 2018 the average sales price is $877,601. In November of 2017, we had a value of $480,068,615 in listed inventory, compared to November of 2018 with a value of $409,102,218.
While a smaller percentage of overall sales, the luxury market is not to be ignored. Moonlight Basin, Spanish Peaks Mountain Club and the Yellowstone Club are all thriving and appeal to the luxury buyer looking for beautiful new construction with a modern take on architecture and a resort experience with private amenities. MLS shows that year to date in SPMC and Moonlight 28 properties sold for $2,000,000 to $4,000,000. These are significant sales and speak to the preferences of some of the new buyers coming to the area.
The overall trend we are seeing is that absorption of real estate inventory is increasing across the board and will likely drive more development of new products as well as absorption of undeveloped land. While pricing on
existing inventory is also increasing, the trend is much less dramatic than 10 years ago, and many wonderful opportunities exist for well informed buyers.
What’s next for Big Sky? Our longer-term outlook is dependent on slated developments coming to fruition in order to maintain our current momentum. We now have at least three new hotels in the offing. The Wilson Hotel, a Marriot/Residence Inn, located in Town Center is scheduled for completion in spring of 2019. Resort hotels are planned for the Spanish Peaks Mountain Club and Moonlight Basin areas as well.
Additional workforce housing will provide more affordable opportunities for some locals. And there is the ever-increasing number and quality of local dining and retail businesses to support our growing population.
There is no absolute certainty as to the strength of the market. But there is certainty that the draw to Big Sky remains unchanged. Big Sky’s magic lies in its rugged landscape and beauty, and its access to world class skiing, fishing, hiking, mountain biking and other outdoor adventures. This is the reason that so many visitors return again and again. And, the abundant early snow promises the certainty of a wonderful winter sports season ahead.
Stacy Ossorio is a broker with Engel & Völkers and can be reached at email@example.com or (406) 539-8553. https://bigsky.evusa.com