As followers of this semi annual market update will see, annualized activity levels in the Big Sky market took a noticeable upturn over the past 12 months.
Activity levels are strong across the board when looking at all classes of real estate. The number of listed properties increased only slightly from 448 to 461 year over year, with an asking market value of $568,173,127 (vs. $608,900,000 for the previous year). The discrepancy in dollar amounts is predominantly due to some of the very upper end inventory pricing, where we have 20 properties priced between $5,000,000 to $15,000,000. Last year, there were slightly more super luxury properties listed.
On the other hand, the number of sold properties jumped from 282 to 318, 36 additional properties, or a 14% increase in volume, with a sold value of $238,228,698, a 25% increase over the $180,000,000 sold value of the previous year, illustrating that the additional 36 units, including several high value luxury property sales, contributed to the $58,000,000 increase is market valuation.
There is now an evident lack of homes on the market in the $400,000 - $600,000 price range. For people in the market for their first home, or looking to upgrade from their first home, there is not much available. This lack of inventory has pushed this Buyer to the condo market where there has been a flurry of activity in complexes like Firelight and some of the older Meadow complexes. This market should continue to thrive for some time due this type of demand.
The mid range condo market ($500,000 - $695,000) has been slower to catch up. Perhaps because that Buyer preferred a house while homes were available. Clearly, the current lack of inventory of homes in that price range would support that conclusion. But now that home inventory has been snapped up, we expect to see condo inventory get sold this winter. There are some great options out there in the Meadow, (Spanish Peaks Club), Mountain (Alpenglow) and new construction in the Town Center. Most of these condo units are large, sell fully furnished and have high end finishes and appliances.
We’re still seeing some pricing settle at the very upper end of the market, but inventory constraints this past year and consistent demand are steadily pushing prices over all into higher territory, which in turn is fueling an increase in inventory. A noticeable addition to inventory is the re emergence of developers back into the market building speculative condos and home starts, in Moonlight and the Spanish Peaks Mountain Club. These Clubs offer private golf course access, ski in ski out terrain, dining and enhanced homeowner association activities and amenities.
Prime lots and land remain value propositions and have a lower cost of ownership for those with patience. For those who really enjoy the process of designing and building a home you can get exactly what you want. We think this will go back to being an attractive option as the price difference between the new spec properties and custom construction per sq. ft. narrows.
As in any market, however, some Sellers are taking a bit longer to find a Buyer when the asking price and value proposition are less obvious. There are over 55 properties that have been listed for over 12 months (several for multiple years) patiently waiting for the market to come their way.
Some background:
The Big Sky area encompasses 228 mi.², or approximately 146,000 acres. Approximately 100 mi.² are in areas that are either developed or can be developed. The balance, approximately 228 mi.² is surrounding Forest Land, Wilderness, animal habitat or unlikely development.
Within the 64,000 acres comprising the Big Sky real estate market area, there are:
Currently, 461 properties listed in the greater Big Sky market (which now includes some listings at the Yellowstone Club), with a market value of $568,173,127. List prices range from $95,000 for vintage Meadow Condo to $15,000,000 for a unique ski in ski out home in Moonlight’s Cowboy Heaven.
261 of the listed properties are valued at under $529,000, and the other 1/2 over $529,000. Of the 231 properties listed over $529,000, 85 are priced between $500,00 and 1$ million, 75 are between $1MM and $2,000,000 mark: 31 priced between $2MM and $3,000,000: 16 priced between $3MM and $4,000,000: 7 priced between $4MM and $5,000,000: 20 properties priced over $5,000,000.
Of the 228 properties listed under $500,000, 95 are priced under $250,000, and 137 are priced between $250,000 and $500,000.
Over the $500,000 mark, 87 are priced under $1MM, 51 are between $1 and 1.5 Million, 23 between $1.5 and $2Million and the balance run all the way up to $15Million, including 6 properties in the Yellowstone Club.
On the sales side, 75% of all sales were under $500,000.
47 properties were land sales, ranging from $116,000 to $500,000 subdivisions lots. Almost 25% of land sales under $500,000 were in Cascade in the Mountain Village, a traditionally second home market. A full 50% (24 properties) sold were in the Meadow area, which is traditionally more of a full time and locals residential area. The balance of the sales (11 properties) were in the Canyon.
Of the 13 land sales that comprise the 25% that sold for over $500,000, high end pricing was represented by 3 lots in the Yellowstone Club ranging in price from $1.8 to $3.5 Million. A development tract in the Meadow closed at just under $2MM after 2 years on the market, and an auction of 13 lots in 260 acres resulted in a sale at $1.5 Million south of Big Sky.
On the commercial side, 13 properties sold including commercial condos, rental properties and commercially zoned land.
233 residential properties sold this past year with a value of $175,000,000 , up from 211 and $152,000,000 value for the prior 12 months.
While these statistics can be confusing, the overall trend that is developing is that absorption is increasing, pricing is inching up and inventory levels that were in decline are now being augmented by developer speculation.
Big Sky continues to expand and broaden its appeal to second home owners and those wishing to call the mountains of Montana home. Infrastructure enhancement in the form of fiber optic cable, increased electrical power capacity, road and interchange improvements are all underway in response to, and in anticipation of, the continued popularity of the area, and will provide residents in Big Sky state of the art convenience.
In most cases, investigating and understanding various locations/neighborhoods, adjacencies and proximity to services, and exploring the Club options and their long term costs of ownership can be complicated and not self explanatory. We know the lay of the land and are here to help.
Activity levels are strong across the board when looking at all classes of real estate. The number of listed properties increased only slightly from 448 to 461 year over year, with an asking market value of $568,173,127 (vs. $608,900,000 for the previous year). The discrepancy in dollar amounts is predominantly due to some of the very upper end inventory pricing, where we have 20 properties priced between $5,000,000 to $15,000,000. Last year, there were slightly more super luxury properties listed.
On the other hand, the number of sold properties jumped from 282 to 318, 36 additional properties, or a 14% increase in volume, with a sold value of $238,228,698, a 25% increase over the $180,000,000 sold value of the previous year, illustrating that the additional 36 units, including several high value luxury property sales, contributed to the $58,000,000 increase is market valuation.
There is now an evident lack of homes on the market in the $400,000 - $600,000 price range. For people in the market for their first home, or looking to upgrade from their first home, there is not much available. This lack of inventory has pushed this Buyer to the condo market where there has been a flurry of activity in complexes like Firelight and some of the older Meadow complexes. This market should continue to thrive for some time due this type of demand.
The mid range condo market ($500,000 - $695,000) has been slower to catch up. Perhaps because that Buyer preferred a house while homes were available. Clearly, the current lack of inventory of homes in that price range would support that conclusion. But now that home inventory has been snapped up, we expect to see condo inventory get sold this winter. There are some great options out there in the Meadow, (Spanish Peaks Club), Mountain (Alpenglow) and new construction in the Town Center. Most of these condo units are large, sell fully furnished and have high end finishes and appliances.
We’re still seeing some pricing settle at the very upper end of the market, but inventory constraints this past year and consistent demand are steadily pushing prices over all into higher territory, which in turn is fueling an increase in inventory. A noticeable addition to inventory is the re emergence of developers back into the market building speculative condos and home starts, in Moonlight and the Spanish Peaks Mountain Club. These Clubs offer private golf course access, ski in ski out terrain, dining and enhanced homeowner association activities and amenities.
Prime lots and land remain value propositions and have a lower cost of ownership for those with patience. For those who really enjoy the process of designing and building a home you can get exactly what you want. We think this will go back to being an attractive option as the price difference between the new spec properties and custom construction per sq. ft. narrows.
As in any market, however, some Sellers are taking a bit longer to find a Buyer when the asking price and value proposition are less obvious. There are over 55 properties that have been listed for over 12 months (several for multiple years) patiently waiting for the market to come their way.
Some background:
The Big Sky area encompasses 228 mi.², or approximately 146,000 acres. Approximately 100 mi.² are in areas that are either developed or can be developed. The balance, approximately 228 mi.² is surrounding Forest Land, Wilderness, animal habitat or unlikely development.
Within the 64,000 acres comprising the Big Sky real estate market area, there are:
Currently, 461 properties listed in the greater Big Sky market (which now includes some listings at the Yellowstone Club), with a market value of $568,173,127. List prices range from $95,000 for vintage Meadow Condo to $15,000,000 for a unique ski in ski out home in Moonlight’s Cowboy Heaven.
261 of the listed properties are valued at under $529,000, and the other 1/2 over $529,000. Of the 231 properties listed over $529,000, 85 are priced between $500,00 and 1$ million, 75 are between $1MM and $2,000,000 mark: 31 priced between $2MM and $3,000,000: 16 priced between $3MM and $4,000,000: 7 priced between $4MM and $5,000,000: 20 properties priced over $5,000,000.
Of the 228 properties listed under $500,000, 95 are priced under $250,000, and 137 are priced between $250,000 and $500,000.
Over the $500,000 mark, 87 are priced under $1MM, 51 are between $1 and 1.5 Million, 23 between $1.5 and $2Million and the balance run all the way up to $15Million, including 6 properties in the Yellowstone Club.
On the sales side, 75% of all sales were under $500,000.
47 properties were land sales, ranging from $116,000 to $500,000 subdivisions lots. Almost 25% of land sales under $500,000 were in Cascade in the Mountain Village, a traditionally second home market. A full 50% (24 properties) sold were in the Meadow area, which is traditionally more of a full time and locals residential area. The balance of the sales (11 properties) were in the Canyon.
Of the 13 land sales that comprise the 25% that sold for over $500,000, high end pricing was represented by 3 lots in the Yellowstone Club ranging in price from $1.8 to $3.5 Million. A development tract in the Meadow closed at just under $2MM after 2 years on the market, and an auction of 13 lots in 260 acres resulted in a sale at $1.5 Million south of Big Sky.
On the commercial side, 13 properties sold including commercial condos, rental properties and commercially zoned land.
233 residential properties sold this past year with a value of $175,000,000 , up from 211 and $152,000,000 value for the prior 12 months.
While these statistics can be confusing, the overall trend that is developing is that absorption is increasing, pricing is inching up and inventory levels that were in decline are now being augmented by developer speculation.
Big Sky continues to expand and broaden its appeal to second home owners and those wishing to call the mountains of Montana home. Infrastructure enhancement in the form of fiber optic cable, increased electrical power capacity, road and interchange improvements are all underway in response to, and in anticipation of, the continued popularity of the area, and will provide residents in Big Sky state of the art convenience.
In most cases, investigating and understanding various locations/neighborhoods, adjacencies and proximity to services, and exploring the Club options and their long term costs of ownership can be complicated and not self explanatory. We know the lay of the land and are here to help.
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