The Bozeman, MT metro area housing market in February 2025 presents a complex landscape characterized by declining prices and shifting dynamics in sales and inventory. The Median Sales Price has decreased to $714,000, marking a significant year-over-year decline of 7.2%. This downward trend is mirrored in the Median List Price, which stands at $710,000, down 2.0% from the previous year.

Despite the drop in prices, the market shows resilience in terms of sales activity. Homes Sold have increased by 2.0% year-over-year, reaching a total of 101 units. Pending Sales also reflect a positive trend, with a 1.6% increase, totaling 130 units. However, New Listings have seen a substantial decline of 29.4%, with only 115 new properties entering the market, indicating a potential tightening of available options for buyers.

The Inventory of Homes Available has decreased slightly by 2.2% year-over-year, with 537 homes currently on the market. This reduction in inventory, coupled with the decline in New Listings, has contributed to a 20.0% decrease in the Months of Supply, now at 5.3 months. This suggests a shift towards a more balanced market, although the extended Median Days on Market, which have increased by 55.0% to 141 days, indicate that homes are taking longer to sell.

Price metrics per square foot have shown minor fluctuations, with the median Price Per Square Foot at $371.81, a slight decrease of 0.4% year-over-year. Similarly, the Median List Price per square foot has decreased by 1.5% to $366.09. These figures suggest a stabilization in Price Per Square Foot, despite the broader declines in overall sales and list prices.

The average sale to list ratio remains unchanged at 0.0%, indicating that homes are generally selling at their listed prices. The sold above list ratio also remains at 0.0%, suggesting that competitive bidding situations are not prevalent in the current market. Price Drops have increased slightly by 1.3%, with 11.7% of listings experiencing reductions, reflecting sellers' adjustments to align with market conditions.

Finally, the percentage of homes going off the market within two weeks has decreased by 14.4% to 20.0%, highlighting a slower pace in buyer decision-making. This, combined with the extended days on market, suggests that while sales activity remains robust, buyers are taking more time to evaluate their options in a market with declining prices and reduced inventory.