REAL ESTATE TODAY
The past year has seen real estate sales in the Seeley, Swan and Blackfoot valleys on a run with dramatic increases in both land and home sales. Although the number of both homes and land that has sold has increased dramatically, price appreciation is a steady 2.5 percent. The current market is very healthy and represents a rising market environment that has led to investors and buyers gaining confidence and returning to purchase local real estate.
Active inventory of homes and land currently listed for sale has been dropping rapidly. The dwindling availability will continue to result in price appreciation, especially on homes.
In the present market, there is very high demand for lakefront properties, lower priced land and newer, single level homes with some custom finishes in the $250,000 to $325,000 range. A spec home is a home that is built new and offered for sale by a builder or an investor. There is currently one spec home completed for sale, two are under construction and two more are slated to start construction in spring/ summer 2017.
Perhaps one of the best investments available is bare land in the Double Arrow Ranch. There are several nice parcels available for less than $50,000. It is anticipated that land sales and values will continue to increase dramatically as home inventories are further reduced.
SEELEY LAKE RESIDENTIAL & LAND SALES
Currently in Seeley Lake, there are 35 homes for sale, plus five homes that are currently under contract to be sold. The median listing price of homes currently active is $395,000.
There were 54 homes for sale at this same time period one year ago. Inventory of homes currently for sale is very short and is sustaining a strong sellers' market, especially with homes priced under $275,000.
The lack of availability will likely result in an increase in home prices in 2017. Interestingly, at one point in 2009, there were more than 120 homes for sale – seven years of inventory, now there is only about five months of home inventory for sale!
Vacant land sales nearly doubled last year. There are currently 102 land parcels for sale. The listed parcels have a median listing price of $91,700 and an average of 329 days on the market. This means there is currently 30 months of land inventory for sale at the current sales pace.
SWAN VALLEY RESIDENTIAL & LAND SALES
Currently in the Swan Valley, there are 22 homes for sale, plus one home that is currently under contract to be sold. The median listing price of homes currently active is $462,500. There is nearly two years of home inventory for sale.
There is no clear explanation of why sales in the Swan have been slow to recover from the recession but that is certainly the case. Homes in the median price range of $450,000 and above have been slower to recover. However, the market is trending toward high-end properties and we are beginning to see much more buyer activity and that will result in a strengthening market in the Swan Valley in 2017.
There are currently 35 land parcels for sale. The listed parcels have a median listing price of $229,000 and an average of 260 days on the market. We expect land sales in the Swan Valley to improve in overall volume in 2017.
Interest rates are currently around 4.125 percent for a 30 year fixed rate mortgage and 3.375 percent for a 15 year fixed rate mortgage.
RENTALS
Demand for rentals is intense. Many people relocating to Seeley Lake have been forced to purchase a home right away due to lack of availability of rentals.
The underlying problem requires more discussion, as many people working in the valley can afford to pay between $400 and $900 per month rent. With the average home price being $245,000, it is not a good return on investment for a landlord to rent.
The construction of multi- family housing units would increase rental availability and perhaps offer housing for less rent. However, multi-family construction most likely won't happen in the near future because current Missoula County septic system restrictions or the underlying cost of land to facilitate the larger septic system that would be required, would make the project cost prohibitive.
NEW DEVELOPMENT
The proposed initial phase of the 30 lot Alpine Trails community continues to work through the final stages of approval from Montana Department of Environmental Quality and Missoula County. If approved, Alpine Trails, lying on the north edge of town, will be a trail-oriented community focused on hiking, biking and cross country skiing.
A local lodge is nearing completion of an expansion that includes kitchen facilities, lodging rooms and a large community room to serve their guest functions.
Additionally, there is a proposed 7,000 square foot, brew pub, restaurant and amphitheater beginning the design approval process and is slated for construction south of the Wilderness Gateway Inn.
If you have any questions regarding the local real estate market or the purchase or listing of property, please contact your local real estate professional.
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