Prices increase as distressed sales diminish.
As expected based on trends reported throughout the year, 2012 was a strong year in real estate sales for the Flathead Valley and Northwest Montana. Sales increased in every single segment of the market, and most notably in the residential sector posting a 33% increase in sales volume over 2011.
The most significant game changer of the year was the shift from distressed sales leading to increased prices. The year started out with around half (51%) of all residential sales being either bank-owned or short sales. That rate was drastically reduced to 24% by the fourth quarter. This reduction was fueled by increased demand coupled with a decrease in distressed inventory.
As the distressed inventory was diminished and the percent of private sales increased, median prices increased. In fact median prices jumped 12% in the 4th quarter 2012 when compared to the same quarter of 2011. The annual increase was more modest at 5.6%.
Total Residential Sales from NMAR MLS
(All data abstracted from NMAR MLS)