Bozeman Real Estate Market Update: Why 2025 is Starting to Feel Like a Buyer’s Market

For the last several years, Bozeman’s housing market has been a textbook example of a seller’s market—low inventory, bidding wars, and homes selling in just days. But as we move through 2025, the story is starting to shift. With more homes for sale, buyers feeling the pinch of higher interest rates, and properties sitting on the market longer, Bozeman is beginning to look a lot more like a buyer’s market.

So what does that mean for you if you’re thinking about buying or selling a home? Let’s dig into the numbers and the opportunities.

 
More Homes on the Market = More Choices

One of the clearest signs of a market shift is rising inventory. In mid-2025, Gallatin County is seeing more homes listed, pushing us closer to a balanced market. In Bozeman, listing activity has grown compared to the frenzied years of 2021–2023, giving buyers a wider pool of properties to choose from.

This added supply is also shifting negotiations. A higher percentage of sales are now closing below list price, showing that sellers are adjusting expectations. For buyers, more inventory means less pressure, more leverage, and the ability to be selective.

 
Slower Pace, More Breathing Room

Alongside rising inventory, homes are also taking longer to sell. In 2024, average days on market were relatively low, but in 2025 that number has stretched into the 50–70+ day range depending on the price point. Realtor.com reported Bozeman’s median days on market at 52 days in July 2025, while Redfin noted 68 days in August. Some well-priced homes still move faster, but the overall trend is toward a slower pace.

For buyers, this means something they haven’t had in years: time. Instead of feeling rushed to make an offer within hours of a showing, buyers can compare, negotiate, and think more strategically.

 
Interest Rates Are Keeping Some Buyers on the Sidelines

Interest rates remain elevated, with 30-year fixed mortgages currently hovering around 6.3–6.4%. While these higher borrowing costs have slowed some buyer activity, they’ve also created opportunities.

Although some buyers have chosen to wait, those who remain active in the market have more negotiating power than before. And remember, while you can’t change the price you paid for a house after closing, you can refinance when rates eventually dip. Buying now gives you the advantage of lower competition and more choice.

Why Pricing Accurately Matters More Than Ever

For sellers, the days of throwing out a high number and still getting multiple offers are behind us—at least for now. Homes priced at market value (especially in the $550K–$950K range) are seeing steady interest and moving within a reasonable timeframe. But listings that come on the market well above fair value are sitting longer, often requiring price reductions or, in some cases, being withdrawn altogether.

The takeaway? If you’re selling, pricing your home right from day one is critical. Buyers have more options, and an overpriced listing will likely just help your competition look better.

Why It’s Still a Great Time to Buy

While higher interest rates have made headlines, the truth is this: it’s the first time in years that buyers in Bozeman actually have options.

-You’re less likely to face a bidding war.

-You have time to shop, negotiate, and ask for concessions (like seller-paid closing costs or rate buy downs).

-With inventory at its highest levels in years, you’re more likely to find the right home without compromising.

-And when rates eventually ease, refinancing could lower your monthly payment—after you’ve already secured the home you want.

 
Final Thoughts

The Bozeman market of 2025 looks very different from the climate we knew in 2021 or 2022. With more homes for sale, longer days on market, and buyers gaining negotiating power, the balance is shifting toward a buyer’s market.

For sellers, the key to success is accurate pricing and strong presentation. For buyers, this is the most favorable market we’ve seen in years to find the right home without the intense competition of the past.

If you’re considering buying or selling in Bozeman, the best strategy is tailored to your unique situation. The Ami Sayer Team is happy to walk through the numbers with you and create a game plan that makes sense in today’s market.