Flathead Valley Real Estate Sales Report
Residential sales continue flat trend; land sales see activity
Our warm summer has drawn to a close and we are enjoying the beautiful autumn colors. Families have returned to school schedules and mountain trails seem deserted. Fall in the Flathead is a great season!
Residential sales have continued to stabilize during the 3rd quarter of this year as inventories have been declining over the past 12 months. All residential sales metrics were in single digit positive territory with regards to volume and pricing.
The increasing trend for land sales we reported in the first quarter of this year have continued. Sales volume is up 10% over the same quarter last year, averaging over $10M per month in sales. Median prices have also continued their climb, but flattened out some with a 3% increase over median sales prices last year.
Commercial sales have also shown a significant increase in this most recent quarter with strides in both volume and median prices.
Total Residential Sales from NMAR MLS
Sales by Segment
As you can see in the graph below, the growth trends of 2012-2013 have been relatively stable since the last quarter of 2013.
Impact of Distressed Properties on Local Market
Distressed sales continue to play a role in our local market, but not nearly as significant as in the past 3 years. Annual sales of distressed homes dropped by 16 points between 2012 and 2013, and the trend is generally holding.
Another good sign in the distressed sales segment is the market’s relatively low inventory of bank-owned properties. Based on our current absorption rate, there is less than three months’ inventory of bank-owned residential listings currently on the market compared to a healthy 6 month inventory for the overall residential market.